SRK Completes Initial Mineral Resource Model and Pit Optimization Report
June 17, 2014, Toronto: Great Lakes Graphite Inc. (“GLK” or the “Company” TSX-V:GLK, OTC PINK:GLKIF, FWB:8GL) is pleased to announce the completion of its inaugural Mineral Resource Estimate for its 100% owned Lochaber Graphite Project near Buckingham, Québec.
The Lochaber mineral resource calculation, favourable particle size distribution and the presence of high purity graphite in the small particulate (hydrothermal vein graphite) material suggests that the project may represent an excellent economic opportunity in the North American critical minerals environment.
The Company reports an Inferred Resource of 4,091,000 tonnes at 4.01% Cg using a cut-off grade of 2.45% Cg.
SRK Consulting (Canada) Inc (“SRK”) was hired by the Company to prepare the mineral resource estimate. GLK believes this study concludes the first step in firmly establishing the viability of the deposit and management is now working with SRK, the Québec Government and the landowners to advance the project.
Paul Gorman, CEO of GLK stated: “While many In-situ calculations rely heavily on a simple property mineralization report, it is critical to note that this comprehensive study is based on near surface mineralization reported within a conceptual pit shell that was constructed by SRK. Because GLK is focussed on utilizing this deposit to supply our recently announced Micronization Facility in Matheson, Ontario, we believe the maiden resource supported by this estimate provides a strong basis for advancing and, potentially, internally financing the Lochaber Project with cash flows generated from our micronization and value-added products activities.
The Company believes that the work completed by SRK demonstrates that the Lochaber deposit is consistent with the Company’s model, which calls for a quarry style, shallow pit mining operation using a modular, scalable plant processing mineralized feedstock to produce a graphite concentrate. Permitting for low tonnage, quarry style operations is a less complex process than what is required for a full mining permit, due to the small environmental footprint and impact.
Gorman commented further, “Our business plan has always favoured a modular, scalable approach, enabling us to gear production levels to North American customer demand. By designing in flexibility from the beginning, GLK intends to manage CAPEX requirements and ramp production to match demand driven by the industries into which we will be delivering products. We are beginning to step up our engagements with prospective customers for our value-added products and so far the reception has been overwhelmingly favourable.”
Table 1: Mineral Resource Statement*, Lochaber Graphitic Carbon Project, Québec,
SRK Consulting (Canada) Inc., June 3 2015
|(‘000 t)||(%)||(000’t)||(Millions lbs)|
* Mineral resources are not mineral reserves and have not demonstrated economic viability. There is no guarantee that all or any part of the mineral resource will be converted into a mineral reserve. All figures are rounded to reflect the relative accuracy of the estimate. Composites have been capped where appropriate.
** Open pit mineral resources are reported at a cut-off grade of 2.45 percent graphitic carbon within a conceptual pit shell. Cut-off grades are based on a graphitic carbon price of US$1,600 per tonne and a metallurgical recovery of 96.5 percent. Pricing assumptions are based on market research and knowledge gathered during meetings with prospective customers. Benchmark Minerals recently quoted $1500 per tonne as the average price for large flake material. Small flake from Lochaber will be shipped to GLK’s Matheson Micronization Facility as feedstock for value-added graphite products that sell for well in excess of flake graphite prices.
The mineral resource estimate was prepared by Sébastien Bernier, PGeo of SRK — an independent Qualified Person under National Instrument 43-101 (“NI 43-101”), using the most current Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Standards on Mineral Resources and Reserves, Definitions and Guidelines.
Martin Ethier, geological consultant to the Company and a Qualified Person under NI 43-101, is responsible for and has reviewed and approved the technical content of this news release. A technical report describing the Lochaber Graphite Resource Estimate will be filed on the Company’s website and on SEDAR within 45 days.
The Particle Size Distribution Analysis for the Lochaber Deposit was completed by Process Research ORTECH Inc. (“PRO”) of Mississauga, ON on composite material taken from a bulk sample acquired last August (see news release dated August 27, 2014). The material for this initial sample was visually selected from waste piles at the historical Plumbago Mine site, located on the Lochaber property, with the objective of retrieving high-grade material to be used for the initial metallurgical testing. The test produced six final concentrates that showed a consistent flake size distribution and a flake size distribution of 57.6% greater than 70 mesh; this is the industry-standard premium product. A summary of the overall distribution of particle sizes is as follows:
|Super Jumbo Flake / XXL||+30 mesh||>500 microns||1.44%|
|Jumbo Flake / XL||-30 to +50 mesh||>300 microns||44.00%|
|Large Flake||-50 to +70 mesh||>180 microns||12.20%|
|Medium Flake||-70 to +100 mesh||>100 microns||13.60%|
|Fine Flake||-100 to +140 mesh||>106 microns||7.70%|
|Powder||– 140 mesh||<106 micron||21.10%|
|Large, Jumbo, Super Jumbo||57.60%|
About Great Lakes Graphite’s QA/QC Program
Great Lakes Graphite Inc. (the “Company”) maintains a rigorous quality assurance/quality control (“QA/QC”) program with respect to the preparation, shipping, analysis and checking of all samples and data from the properties. Quality control for drill programs at the Company’s projects covers the complete chain of custody of samples, including verification of drill hole locations (collar surveys and down-hole directional surveys), core handling procedures (logging, sampling, sample shipping) and analytical-related work, including duplicate sampling, “check analysis” at other laboratories and the insertion of standard and blank materials. The QA/QC program also includes data verification procedures.
Sample preparation and primary analysis for the Lochaber Graphite project is done in accordance with the International Standards Organization (“ISO”) commonly referred to as ISO\IEC17025. All samples are assayed for Cg. The technique used for determining Cg is by LECO whereby the pulp is either digested with hydrochloric and perchloric acids, or subjected to a multistage furnace treatment to remove all forms of carbon with the exception of Cg.
As part of the comprehensive QA/QC program, one blank was inserted into the assay stream for every 10 core samples submitted. Blanks were inserted directly after highly mineralized samples to test for contamination during the preparation. Three separate blank materials have been used and a suitable consistent material was utilized in 2014. Duplicate samples include ¼ drill core splits and were submitted as two separate samples with consecutive sample numbers. One duplicate sample was inserted for every 20 samples.
Quality control is carried out by Great Lakes Graphite employees under the supervision of Mr. Martin Ethier, P.Geo., who is a Member of the Ordre des géologues du Québec and a Qualified Person under NI 43-101. Mr. Ethier is responsible for and has reviewed and approved the technical content of this news release.
About Great Lakes Graphite: Great Lakes Graphite Inc. is an industrial minerals company focussed on bringing carbon products to a well defined market through a vertically integrated supply chain.
As there is currently no significant graphite production in North America, Great Lakes Graphite has the ability to become one of the first domestic suppliers to a growing regional customer base that requires high quality natural 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 through its Innovations Division is currently recommissioning an Ontario based Micronization Facility for re-start in late 2015 to achieve the following objectives:
- Establish a position in the upgraded graphite products market with North American customers.
- Create a competitive and disruptive advantage by leveraging existing assets.
- Pursue an accelerated timeline to cash flow and revenue by micronizing and upgrading flake graphite, enabled by supply agreements with current graphite producers.
The Lochaber Graphite Deposit is located just 30km east of Ottawa, in southwestern Québec. The Company has also entered into option and joint venture agreements with Eloro Resources Inc.(TSXV:ELO) on the Summit-Gaber Cobalt property located in the La Grande Greenstone Belt in the Baie James region of Québec. Further information regarding Great Lakes can be found on the Company’s website at: www.GreatLakesGraphite.com.
Great Lakes Graphite trades with symbol GLK on the TSX Venture Exchange and currently has 95,304,075 shares outstanding (139,012,966 fully diluted).
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