Marketwire
TORONTO, ONTARIO--(Marketwired - Nov. 4, 2013) - Xmet Inc. ("Xmet" or the "Company") (TSX VENTURE:XME)(OTCQX:XMTTF) is pleased to announce that it has acquired the following two contiguous blocks of claims, totalling 70 claim units, tied onto the northwestern portion of Zenyatta Ventures Ltd's ("Zenyatta") Albany Project including; (a) a staked 100% ownership interest in 46 claim units contiguous to Zenyatta's northwest boundary; and (b) an optioned 100% ownership interest in 24 claim units tied onto the northwestern portion of Zenyatta's Albany Project.
"Xmet is excited about the potential that these 100% owned properties can deliver. Zenyatta's tremendous success in the region demonstrates the high potential of the area for world class graphite deposits. The market demand that exists for hydrothermal vein-type graphite is substantial," said Alexander Stewart, Xmet's Chairman and CEO. In addition, he noted that "as indicated in Zenyatta's recent press releases, the graphite discovered in the area appears to have highly desirable characteristics such as low resistivity and thus enhanced ability to transmit an electrical current. Its highly crystalline structure also aids thermal and electrical conductivity. These characteristics are comparable to commercial grade synthetic graphite which attracts significant prices from many growing markets for products such as electronics, lithium-ion and other batteries, capacitors, sensors and catalysts."
Zenyatta discovered high quality vein-type hydrothermal graphite mineralization while conducting follow-up drilling on electromagnetic geophysical anomalies identified by an airborne geophysical survey conducted by Geotech in 2010. The world class Zenyatta magmatic, hydrothermal (vein type) graphite deposit is potentially economic and occurs within a graphite breccia with a granitic matrix host rock.
Xmet's Blackflake Project has been acquired based on a search and evaluation of historical data in the region that has identified favorable magnetic lows that occur along the western margin of an oval shaped, 27km by 27km intrusion hosting Zenyatta's Albany graphite deposit. Magnetic lows with associated strong electromagnetic anomalies are considered high priority exploration targets having potential to host additional high purity hydrothermal graphite occurrences. The known graphite mineralization in the area has been described as occurring in breccia pipes having dimensions in the order of 200m by 400m. It is believed that major structural controls influenced emplacement of the graphite breccia pipes on Zenyatta's Albany project. The magnetic lows identified on Xmet's Blackflake Project have strong potential to host a high purity hydrothermal vein type graphite deposit, similar to Zenyatta's recent discovery.
The staked magnetic lows have never been previously flown by an electromagnetic ("EM") survey. The staked magnetic lows will now be tested by an airborne EM survey that Xmet will commission in the coming weeks. The survey will target graphite deposits that have a strong EM signature.
Bill Yeomans, P. Geo, states, "The geology surrounding the Zenyatta discovery is considered favorable for hosting additional graphite deposits. Much of the land external to the Zenyatta property has sufficient airborne magnetic coverage but has never been tested by electromagnetic surveys. Additional graphite breccia pipes similar to the Albany discovery may be discovered along favorable structural corridors where targeted magnetic lows have coincident strong electromagnetic anomalies. Magnetic low targets on the property will require electromagnetic surveys to determine if strong electromagnetic conductors are present. Strong conductors in this favorable geological environment could have excellent potential for hosting a significant graphite deposit or other potentially economic mineralization."
In order to acquire the 100% stake in the 24 claim unit block, Xmet will pay $5,000 in cash and 300,000 shares of Xmet upon receipt of TSXV approval of the transaction and an additional $5,000 in cash 90 days after TSXV approval of the transaction. In addition Xmet has agreed to fly an Electromagnetic Survey over the Blackflake Project after which Xmet can issue 1,700,000 million shares to the vendor to complete the acquisition of the 24 claim units. Metals Creek Resources, the vendor of the 24 claim unit block, will also hold a 1% Net Smelter Royalty ("NSR") interest from all ore production from the 24 claim unit block, subject to, the right of Xmet to buy back half of the NSR interest for $500,000 and the final half for $1,000,000 at any time.
The technical information contained in this news release has been approved by William Yeomans, a director of Xmet, who is a Qualified Person as defined in 'National Instrument 43-101, Standards of Disclosure for Mineral Projects.'
Neither 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.
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Xmet assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Xmet. Additional information identifying risks and uncertainties is contained in filings by Xmet with Canadian securities regulators, which filings are available under Xmet's profile at www.sedar.com.