Great Lakes Graphite Announces Initial Resource Estimate for Lochaber
06/17/2015 12:38 PM ET
SRK Completes Initial Mineral Resource Model and Pit Optimization Report
TORONTO, ONTARIO, Jun 17, 2015 (Marketwired via COMTEX News Network) -- Great Lakes Graphite Inc. ("GLK" or the "Company") (TSX VENTURE:
GLK)(OTC PINK: GLKIF)(FRANKFURT: 8GL) is pleased to announce the
completion of its inaugural Mineral Resource Estimate for its 100%
owned Lochaber Graphite Project near Buckingham, Quebec.
The Lochaber mineral resource calculation, favourable particle size
distribution and the presence of high purity graphite in the small
particulate (hydrothermal vein graphite) material suggests that the
project may represent an excellent economic opportunity in the North
American critical minerals environment.
The Company reports an Inferred Resource of 4,091,000 tonnes at 4.01%
Cg using a cut-off grade of 2.45% Cg.
SRK Consulting (Canada) Inc ("SRK") was hired by the Company to
prepare the mineral resource estimate. GLK believes this study
concludes the first step in firmly establishing the viability of the
deposit and management is now working with SRK, the Quebec Government
and the landowners to advance the project.
Paul Gorman, CEO of GLK stated: "While many In-situ calculations rely
heavily on a simple property mineralization report, it is critical to
note that this comprehensive study is based on near surface
mineralization reported within a conceptual pit shell that was
constructed by SRK. Because GLK is focussed on utilizing this deposit
to supply our recently announced Micronization Facility in Matheson,
Ontario, we believe the maiden resource supported by this estimate
provides a strong basis for advancing and, potentially, internally
financing the Lochaber Project with cash flows generated from our
micronization and value-added products activities.
The Company believes that the work completed by SRK demonstrates that
the Lochaber deposit is consistent with the Company's model, which
calls for a quarry style, shallow pit mining operation using a
modular, scalable plant processing mineralized feedstock to produce a
graphite concentrate. Permitting for low tonnage, quarry style
operations is a less complex process than what is required for a full
mining permit, due to the small environmental footprint and impact.
Gorman commented further, "Our business plan has always favoured a
modular, scalable approach, enabling us to gear production levels to
North American customer demand. By designing in flexibility from the
beginning, GLK intends to manage CAPEX requirements and ramp
production to match demand driven by the industries into which we
will be delivering products. We are beginning to step up our
engagements with prospective customers for our value-added products
and so far the reception has been overwhelmingly favourable."
Table 1: Mineral Resource Statement(i), Lochaber Graphitic Carbon
Project, Quebec, SRK Consulting (Canada) Inc., June 3 2015
----------------------------------------------------------------------- ----- Resource Category Quantity Grade Contained Graphitic Carbon Graphitic Carbon ---------------------------------------------------------------------------- ('000 t) (%) (000't) (Millions lbs) ---------------------------------------------------------------------------- Inferred(ii) 4,090 4.01 160 362 ----------------------------------------------------------------------------
(i) Mineral resources are not mineral reserves and have not
demonstrated economic viability. There is no guarantee that all or
any part of the mineral resource will be converted into a mineral
reserve. All figures are rounded to reflect the relative accuracy of
the estimate. Composites have been capped where appropriate.
(ii) Open pit mineral resources are reported at a cut-off grade of
2.45 percent graphitic carbon within a conceptual pit shell. Cut-off
grades are based on a graphitic carbon price of US$1,600 per tonne
and a metallurgical recovery of 96.5 percent. Pricing assumptions are
based on market research and knowledge gathered during meetings with
prospective customers. Benchmark Minerals recently quoted $1500 per
tonne as the average price for large flake material. Small flake from
Lochaber will be shipped to GLK's Matheson Micronization Facility as
feedstock for value-added graphite products that sell for well in
excess of flake graphite prices.
The mineral resource estimate was prepared by Sebastien Bernier, PGeo
of SRK -- an independent Qualified Person under National Instrument
43-101 ("NI 43-101"), using the most current Canadian Institute of
Mining, Metallurgy and Petroleum ("CIM") Standards on Mineral
Resources and Reserves, Definitions and Guidelines.
Martin Ethier, geological consultant to the Company and a Qualified
Person under NI 43-101, is responsible for and has reviewed and
approved the technical content of this news release. A technical
report describing the Lochaber Graphite Resource Estimate will be
filed on the Company's website and on SEDAR within 45 days.
Metallurgy
The Particle Size Distribution Analysis for the Lochaber Deposit was
completed by Process Research ORTECH Inc. ("PRO") of Mississauga, ON
on composite material taken from a bulk sample acquired last August
(see news release dated August 27, 2014). The material for this
initial sample was visually selected from waste piles at the
historical Plumbago Mine site, located on the Lochaber property, with
the objective of retrieving high-grade material to be used for the
initial metallurgical testing. The test produced six final
concentrates that showed a consistent flake size distribution and a
flake size distribution of 57.6% greater than 70 mesh; this is the
industry-standard premium product. A summary of the overall
distribution of particle sizes is as follows:
Graphite Class Mesh Microns Percentage Super Jumbo Flake / XXL +30 mesh greater than 1.44% 500 microns Jumbo Flake / XL -30 to +50 mesh greater than 44.00% 300 microns Large Flake -50 to +70 mesh greater than 12.20% 180 microns Medium Flake -70 to +100 mesh greater than 13.60% 100 microns Fine Flake -100 to +140 mesh greater than 7.70% 106 microns Powder - 140 mesh less than 106 21.10% micron Large, Jumbo, Super Jumbo 57.60%
About Great Lakes Graphite's QA/QC Program
Great Lakes Graphite Inc. (the "Company") maintains a rigorous
quality assurance/quality control ("QA/QC") program with respect to
the preparation, shipping, analysis and checking of all samples and
data from the properties. Quality control for drill programs at the
Company's projects covers the complete chain of custody of samples,
including verification of drill hole locations (collar surveys and
down-hole directional surveys), core handling procedures (logging,
sampling, sample shipping) and analytical-related work, including
duplicate sampling, "check analysis" at other laboratories and the
insertion of standard and blank materials. The QA/QC program also
includes data verification procedures.
Sample preparation and primary analysis for the Lochaber Graphite
project is done in accordance with the International Standards
Organization ("ISO") commonly referred to as ISO\IEC17025. All
samples are assayed for Cg. The technique used for determining Cg is
by LECO whereby the pulp is either digested with hydrochloric and
perchloric acids, or subjected to a multistage furnace treatment to
remove all forms of carbon with the exception of Cg.
As part of the comprehensive QA/QC program, one blank was inserted
into the assay stream for every 10 core samples submitted. Blanks
were inserted directly after highly mineralized samples to test for
contamination during the preparation. Three separate blank materials
have been used and a suitable consistent material was utilized in
2014. Duplicate samples include 1/4 drill core splits and were
submitted as two separate samples with consecutive sample numbers.
One duplicate sample was inserted for every 20 samples.
Quality control is carried out by Great Lakes Graphite employees
under the supervision of Mr. Martin Ethier, P.Geo., who is a Member
of the Ordre des geologues du Quebec and a Qualified Person under NI
43-101. Mr. Ethier is responsible for and has reviewed and approved
the technical content of this news release.
About Great Lakes Graphite: Great Lakes Graphite Inc. is an
industrial minerals company focussed on bringing carbon products to a
well defined market through a vertically integrated supply chain.
As there is currently no significant graphite production in North
America, Great Lakes Graphite has the ability to become one of the
first domestic suppliers to a growing regional customer base that
requires high quality natural graphite, where pricing and demand
continue to rise.
The Company, through strategic acquisitions and capable management
intends to become a leader in the industrial minerals marketplace.
The Company through its Innovations Division is currently
re-commissioning an Ontario based Micronization Facility for re-start
in late 2015 to achieve the following objectives:
-- Establish a position in the upgraded graphite products market with North American customers. -- Create a competitive and disruptive advantage by leveraging existing assets. -- Pursue an accelerated timeline to cash flow and revenue by micronizing and upgrading flake graphite, enabled by supply agreements with current graphite producers.
The Lochaber Graphite Deposit is located just 30km east of Ottawa, in
southwestern Quebec. The Company has also entered into option and
joint venture agreements with Eloro Resources Inc. (TSX VENTURE: ELO)
on the Summit-Gaber Cobalt property located in the La Grande
Greenstone Belt in the Baie James region of Quebec. Further
information regarding Great Lakes can be found on the Company's
website at: www.GreatLakesGraphite.com.
Great Lakes Graphite trades with symbol GLK on the TSX Venture
Exchange and currently has 95,304,075 shares outstanding (139,012,966
fully diluted).
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Contacts: Great Lakes Graphite Inc. Paul Ferguson Chief Marketing Officer 1-800-754-4510 x106 PFerguson@GreatLakesGraphite.com Great Lakes Graphite Inc. Paul Gorman Chief Executive Officer 1-800-754-4510 x109 PGorman@GreatLakesGraphite.com www.GreatLakesGraphite.com
SOURCE: Great Lakes Graphite Inc.