TORONTO, ON / ACCESSWIRE / June 20, 2022 / Gratomic Inc. ("Gratomic", "GRAT," or the "Company") (TSXV:GRAT)(OTCQX:CBULF)(FSE:CB82) announces the production of its first batch of samples expected to be representative of the commercial production from its Aukam plant in Namibia.
After receiving the bulk sample from the Company's Aukam processing plant in Namibia, SGS performed a series of grinding and flotation stages with the material that replicated the Aukam flowsheet. Three different concentrate batches graded 97.8% C(t), 98.2% C(t), and 96.2% C(t). The combined concentrate grade of 97.4% C(t) meets the specifications of Gratomic's tentative Technical Data Sheets (TDS) for a 97% product.
After sieving, the concentrate was separated into kg-sized sample lots, which will be forwarded to prospective end users, in order to start the product qualification process. Part of the material will be sent to specific development laboratories to proceed with testing and development of value-added processes such as micronization, spheronization, and purification to advance the integrated supply chain process for battery anode material.
All metallurgical testing and chemical characterization was completed by the independent laboratories at SGS Lakefield. SGS is one of the world's leading testing, inspection and certification companies and provides a broad range of metallurgical process design and chemical characterization at the Lakefield, ON site.
"These results verify that our metallurgical process is adequate for producing the desired grades required by our end-users," states Arno Brand President and CEO.
Armando Farhate COO & Head of Graphite Marketing and Sales says, "Having the cooperation with a world class organization, such as SGS Lakefield, bears very good fruits to the development of our flagship Aukam project."
Gratomic wishes to emphasize that no Preliminary Economic Analysis, Preliminary Feasibility Study or Feasibility Study has been completed to support any level of production. In fact, no mineral resources let alone mineral reserves demonstrating economic viability and technical feasibility, have been delineated on the Aukam property.
The Company is working towards completing a Feasibility Study (FS) on the Aukam Processing plant. The study, its recommendations, and their subsequent implementation, will provide conclusions and recommendation at a FS level of comfort relating to the scale up of the existing processing plant to a commercial scale processing facility capable of producing the desired concentrate grades and production rates.
Gratomic wishes to emphasize that the supply of graphite is conditional on Gratomic being able to bring the Aukam project into a production phase, and for any graphite being produced to meet certain technical and mineralization requirements. Gratomic continues to move its business towards production and as part of its business plan, expects to file a National Instrument 43-101 Standards of Disclosure for Mineral Projects resource estimate in Q3 2022.
Risk Factors
No mineral resources, let alone mineral reserves demonstrating economic viability and technical feasibility, have been delineated on the Aukam Property. The Company is not in a position to demonstrate or disclose any capital and/or operating costs that may be associated with the processing plant until the FS (Feasibility Study) is completed.
The Company advises that it has not based its production decision on even the existence of mineral resources let alone on a Preliminary Feasibility Study or FS of mineral reserves, demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit.
Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will begin as anticipated or at all or that anticipated production costs will be achieved.
Failure to commence production would have a material adverse impact on the Company's ability to generate revenue and cash flow to fund operations. Failure to achieve the anticipated production costs would have a material adverse impact on the Company's cash flow and future profitability.
Qualified Persons
Mr. Oliver Peters, a Principal Metallurgist with Metpro Management Inc., is a Qualified Person within the meaning of NI 43-101. Mr. Peters is satisfied that the analytical and testing procedures used are standard industry operating procedures and methodologies, and he has reviewed, approved and verified the technical information disclosed in this news release, including sampling, analytical and test data underlying the technical information.
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