The following is a Stockhouse Q&A interview with Graphite One Resources Inc. (TSX: V.GPH, Stock Forum) Executive Chairman, Doug Smith
1. What is the investment case for Graphite One Resources right now?
Graphite One’s Graphite Creek property near Nome, Alaska is a premium, large flake graphite deposit. The resource is huge, high grade and at-surface with simple geology and good mineralization continuity. The project has direct access to a Pacific port and global markets. We expect to produce products that will effectively compete in the high end battery market (for both electric vehicles and power storage) as well as other markets for purified graphite and graphite by-products.
These markets are forecast to grow and we expect to become a prominent global player. Our recently updated mineral resource estimate moves sufficient resources into the indicated category to provide the basis for our Preliminary Economic Assessment expected to be released in Q2 2015.
2. What sets you apart from the competition in the graphite space?
We believe Graphite Creek’s resource size, quality and location provides the potential for Graphite One to be America’s premium supplier of large flake graphite to the global markets.
3. What is your view on the outlook for the graphite commodity?
We expect to see growth in all graphite markets from now into the next decade. The highest growth rate is expected in the high end battery market with the growing demand forecast for batteries for both electric vehicles and power storage.
4. Why have you chosen to focus on the Graphite Creek Project in Alaska?
The Graphite Creek deposit was well known in the region and produced graphite for the US market during the first half of the last century. It is located near Nome, Alaska, a region and state with a significant mining history, tremendous potential and extensive mining expertise. We believe the project is well positioned to participate in the growing demand for high end graphite products. As our work on the project progresses, we have been very pleased to see its excellent quality, large size and simple, at-surface geology.
Nome also has an established container shipping system bringing inbound goods to the region which, as a back haul, provides us with convenient access to U.S. markets. We are also particularly appreciative of the support we have received at both state and federal government levels.
5. Graphite Creek has an interesting history. Can you tell us a bit about your production history?
The Graphite Creek property was mined by the Tweet family, a prominent Alaskan mining family, during the first half of the last century. The family began mining gold in the Teller, Alaska area about 1900 and switched to supplying graphite to the American market particularly during the first and second World Wars. We see the region again becoming a prominent graphite supplier as technological innovation has placed graphite on the lists of critical and strategic materials of the United States as well as other countries.
6. What is your overall strategic goal for Graphite One?
Our goal is to develop Graphite One into the premium American supplier of large flake graphite to the global market.
7. What milestones should we look for this year that will tell us that you are on the road to meeting your strategic goals?
During 2015, we expect to release our Preliminary Economic Assessment in Q2 and complete another in-fill drilling program during the summer. This will provide the ground work for our feasibility phases which will follow.
8. What were some of your key accomplishments in 2014?
We opened the year with the release of an updated inferred resource estimate which included the results of our 2013 exploration program. We then raised about $5million in funds and in October completed the 2014 drill program with 22 holes totaling 2,314 meters. This program focused on infill drilling between holes utilized in the updated inferred resource. With this information, work on an updated resource estimate commenced and the results were announced earlier this week. These results moved sufficient resources into the indicated category and provided the basis for our Preliminary Economic Assessment expected to be released in Q2 2015.
9. What is large flake crystalline graphite and what are some common applications?
Flake is one of the graphite forms and characterized by varying flake sizes, shapes and aspect ratios. Each deposit has its unique characteristics which determine its ability to produce various end products. Large flake, high purity graphite is the most sought and provides a feed stock to make battery grade materials and high end refractory products.
10. Who are some of the key players on your management team and what do they bring to the table in terms of helping the company to meet its strategic goals?
Our President & CEO is Anthony Huston. He brought the Graphite Creek deposit to the company and has been instrumental in guiding the investor relations side of the company. Alan Ahlgren recently joined us as CFO and brings extensive experience as a senior financial executive in the resource sector. Dave Hembree is our General Manager of Operations and he is an experienced geologist who has guided projects from the exploration phase to start-up.
I joined the company about a year ago and my background has involved senior management positions in resource companies involved in all aspects of project exploration, development and operation. We also have a highly experienced board who are instrumental in assisting management as we advance the project.
11. Do you have any plans to tap the market for more money this year?
Our current funding will carry through to the release of the Preliminary Economic Assessment. We expect to reach out to the market again in the latter half of Q2 seeking funds to advance us through the feasibility stages.
14. Who are Graphite One’s largest shareholders?
Graphite One is fortunate to have a broad, diverse group of shareholders.
FULL DISCLOSURE: Graphite One is a client of Stockhouse Publishing.