Big North Begins Assembly of Graphite Processing Facility and Buying of Amorphous Graphite for Processing
(via Thenewswire.ca)
Vancouver, B.C., April 22, 2013 - BIG NORTH GRAPHITE CORP. (TSX-V: NRT) (the "Company" or "Big North"), announces that the Company has begun the assembly of a graphite processing facility in Sonora Mexico. Big North recently entered into an agreement to purchase an 18 acre piece of land, located 8 kilometers west of the town of La Colorada, for the construction of a processing facility. The facility will be used for stockpiling, crushing, screening, sizing and drying the graphite to the specifications of individual future customers. Graphite produced at the facility will be shipped in bags or bulk containers. The facility location is ideal for shipping by truck within Mexico and rail is located within 15 kilometers, for shipping outside of Mexico. Clearing and grading of the approximately 18 acre site has started and expected to be completed within two weeks. Pad construction for the stockpiling of graphite is underway. Equipment for the facility is being purchased, with some items, including a Cat loader, a generator, a water trailer, a stationary screen, an air compressor and miscellaneous tools having already arrived at the site.
The processing facility will be located approximately 30 kilometers north of the Company's Nuevo San Pedro project, located in the San Jose de Moradillas region, a region that has produced graphite for more than 145 years. San Jose de Moradillas is located approximately 45 kilometers southwest of the city of Hermosillo, Mexico.
Spiro Kletas, President of Big North commented, "We are excited with the progress at Nuevo San Pedro and the construction of our graphite processing facility brings us that much closer to our goal of becoming one of the first junior graphite companies to supply the graphite market."
Big North Begins Buying Graphite
Big North also announces that, as part of the Company's business plan, the Company has started buying amorphous graphite from local private producers who do not have processing capabilities. Big North has recently acquired approx 100 tons of amorphous graphite in an unprocessed form from two local miners. Big North plans to purchase graphite from local producers to supplement potential production from the Nuevo San Pedro project. The Company plans to process the purchased graphite to the specifications of future customers and re-sell the purchased graphite at market prices, capturing the difference in prices.
Spiro Kletas, President of Big North commented, "We are pleased to have struck up agreements with private, local producers for the purchase of their mined amorphous graphite. This allows Big North to increase the tonnage of graphite that the Company can process and sell, without the risks associated with mining. Big North plans to purchase 100% of the graphite that several local miners produce, as long as the grade is sufficient to allow for its re-sale."
Nuevo San Pedro is an approximately 11 hectare property, located near the town of La Colorada. The La Lourdes graphite mine, which has been in operation for approximately 50 years, is located approximately 1 kilometer to the north. Nuevo San Pedro is a past producing mine, which shut down due to low graphite prices and is currently being re-opened.
For further information please contact Spiro Kletas at (604) 629-8220.
ON BEHALF OF THE BOARD
(signed) "Spiro Kletas"
Spiro Kletas
President and Chief Executive Officer
While Big North intends to re-start the Nuevo San Pedro mine, the Company has not established mineral resources and has not completed a valid mining study (as defined by NI 43-101) to support a production decision. Historically, a production decision under these circumstances results in much higher economic or technical risk. Furthermore, without a pre-feasibility or feasibility study and a graphite reserve, there can be no assurance that operations at Nuevo San Pedro will be profitable.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Except as required pursuant to applicable securities laws, the Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by the Company.
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