Alabama Graphite Corp. Com ABGPF

Metals & Mining Industrial Metals & Minerals

GREY:ABGPF - Post by User

Alabama Graphite Corp. Com > A more complete table ragarding Graphite size/purity

<< Previous

Bullboard Posts

Next >>

Comment by micromanageron Jan 22, 2015 7:00pm

220 Views

Post# 23353731

RE:RE:RE:A more complete table ragarding Graphite size/purity

Hi Doc,

Here's my version of your chart with some explanations.

I think that these results for ALP are as expected, there is just nobody buying shares in any of these companies right now. The trenches ALP dug act like horizontal drill holes on the cheap and are helping to prove that they have several deposits similar to their already indicated and inferred resource.    I think there is great potential for them to define a very large resource when you look at how many targets there are and good chance they are all comparable to the resource they have already defined. I think the PEA might find a better ROI if they only mine the upper soft oxidized layer vs. going so deep that you get into the hard rock that needs to be blasted and intensively crushed.

The grades are good in my mind especially when compared to some like NGC.   They showed consistency over hundreds of feet in ground that can be dug up by an excavator. Just what we need to build a very efficient mine. Any downside of having 4%Cg is significantly offset by cheaper everything from fuel to labor, transportation, taxes and the fact that the unique soft oxidized deposit offers significant operational advantages in the mining and milling processes.

I added the column to the right of your chart to make it complete. The last columns are very Important for Alabama as you can see they are the only company that can liberate the graphite and achieve industry standard of 95%Cg for all sizes of flakes using only floatation. More and more manufacturers are starting to use smaller flakes so size is not necessarily everything. But purity is everything, with L-ion batteries needing 98.9%Cg you want to be as close to that as possible.   Many companies with very hard rock must grind it to a powder to liberate the flakes and in that grinding process they create a lot of low grade graphite. I have heard of some mines that have stockpiles of this low grade graphite that they can't sell because it is only 90% purity and small flakes. If you are running a mine it is a huge advantage if you can sell 100% of the graphite concentrate you produce for top dollar rather than only 80% of it. On a 50,000 tons per year mine that could represent 10,000 tons a year. At about $1000/ton extra you get if it is high purity this could equal an extra 10M$/year. You can see how with a mine that costs 100M$ to build it makes a huge difference in the ROI if you can capture that revenue.

Be careful with charts like these though. It is not all about these numbers.   Behind these numbers is the fact that graphite is a bulky industrial mineral with high mining costs, it is not just about what you have in the ground, it is about how much does it cost to get it out of the ground.   You have to look at the drill holes and make sure there is a large amount of graphite on the surface. Focus has set the standard for new graphite mines with 1/3rd of their pit measuring 15%Cg which is a good benchmark to compare to. Look at complete drill holes 0-300ft from other companies and see if they have 1/3rd of their hole that is comparable.

Company	Total Weighted Average Concentrate Purity (author calc)	Large Flakes (%) +80 mesh	Purity	Medium Flakes (%) -80+150 mesh	Purity	Small Flakes (%) -150+200 mesh	Purity	Tiny Flakes (%) -200 mesh	Purity
Focus Graphite	96,9	33,5	98,3	29,8	98,2	16,6	94,5	20,0	91,1
Syrah Resources	>96,0	58,3	>96,0%	??	??	??	??	??	??
Alabama Graphite (Bama)	95,8	54,7	96,0	23,0	96,0	12,0	97,0	11,0	95,0
Energizer Graphite	94,9	43,5	97,3	24,7	96,2	10,1	95,2	21,6	88,2
Northern Graphite	94,9	75,4	96,7	7,0	93,0	7,0	93,0	8,9	83,0
Mason Graphite	93,7	29,0	96,3	14,0	96,2			57,0	91,7
Great Lakes Graphite	<94,5	57,6	96,0	13,6	?? (<94,5)	28,0	?? (<94)
Flinders Resources	91,7	40,0	94,5	28,0	92,0			32,0	88,0
Graphite One	92,0?	93,6	92,0?	3,3	??	3,0	??
Zenyatta	92,5?	??	??	??	??	??	??
Canada Carbon	>99,0?	??	??	??	??	??	??