May 6, 2014, Toronto: Shield Gold Inc., operating as Great Lakes Graphite (the “Company”),is pleased to announce the that follow-up sampling has identified a new zone of graphite mineralization on one its Buckingham Area flake-graphite properties located in a region of historical graphite mining, with close proximity to Montréal and Ottawa. A sample submitted for analysis returned 18.9% Cg (carbon as graphite).
The Company’s geological partner, Wolf Mountain Exploration Inc. was recently directed to carry out a field visit to collect samples from selected conductive zones that were identified by the Company’s airborne geophysical and Beep Mat surveys. This new zone of graphite mineralization was located on the Company’s Bell claim block; this group of claims is located in Lochaber Township immediately to the east of the past-producing Dickson (Québec Graphite) and Bell Mines.
Paul Gorman, CEO of Great Lakes Graphite, commenting on the sample results stated: “This high-grade mineralization is significant for the Company in that it confirms that the geophysical work carried out on the property by the Company has been capable of identifying targets that are caused by the presence of significant graphite mineralization. Given the large number of geophysical targets available to the Company for follow-up work and that only a few select targets have been geological investigated to date, this gives us great exploration potential and the best chance to move this project forward to the next stage of development.”
As a result of this successful program, the Company has been preparing a full geological program including channel sampling, detailed EM surveying to define specific targets for diamond drilling, Scanning Electron Microscopy (SEM) and assaying scheduled for the summer of 2014. The Company also plans to perform comprehensive metallurgical tests to determine particle size distribution and elemental analysis. These tests will be conducted at Process Research Ortech Inc. (PRO), located in Mississauga, ON.
Analysis for Cg was performed by Activation Laboratories Ltd. (Actlabs) of Ancaster, ON using a LECO furnace and infrared (IR) detector.
The Company is extremely encouraged with this latest assay result and believes it is making important steps forward in its business objective of becoming a new North American near-term producer of high-grade graphite. Tesla Motors Inc. (“Tesla”), recently announced plans to build a new $5 billion lithium-ion battery plant in the United States. As well, co-founder of Tesla, Elon Musk, stated the company “plans to use only raw materials sourced in North America for its U.S. battery factory”. According to Simon Moores at Industrial Minerals (“IM”), the output of this factory would more than double the size of the current market for graphite and the graphite industry would likely be the beneficiary of this growth. In IM’s calculations, demand for natural flake graphite could increase by up to 37% by the year 2020, requiring equivalent production from six to nine new graphite mines.
The technical content of this press release has been reviewed and approved by Mr. John M. Siriunas, P.Eng., VP Exploration of the Company, a Qualified Person as defined by National Instrument 43-101.
About Great Lakes Graphite: Great Lakes Graphite is an industrial minerals company with the mandate to bring graphite projects to production through the acquisition and development of high quality graphite flake properties. Graphite has moved to the forefront of the Industrial Mineral World as a Critical Mineral required for industrial use and as a major component in the development of new technologies. With the advancement of battery storage, mobile battery systems and alternative energy infrastructure, it is estimated that 20 new graphite flake mines will be required to keep up with worldwide demand by the year 2020.
As there are currently no graphite mines producing in North America, Great Lakes Graphite has the ability to become one of the first producers to supply a growing regional customer base that requires high-quality flake 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’s graphite properties are located in the Buckingham and Lochaber Townships of southwestern Québec. The Company has also entered into option and joint-venture agreements with Eloro Resources Inc. on the Summit-Gaber property located in the La Grande Greenstone Belt in the James Bay region of Québec. Further information regarding Great Lakes can be found on the Company’s website at: www.GreatLakesGraphite.com.
Shield Gold Inc. trades with symbol SHG on the TSX Venture Exchange and currently has 42,504,819 shares outstanding (61,638,982 fully diluted). The Company does anticipate completing its full transition to “Great Lakes Graphite Inc.”, including a new trading symbol, within two weeks.
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