Northern Graphite Corporation (TSX VENTURE: NGC)(OTCQX: NGPHF) is
pleased to announce a significant increase in estimated resources
on its Bissett Creek graphite project based on the results from a
51 hole, 2,927 meter drilling program.
The updated base case mineral resource for the Bissett Creek
deposit, using a cut off of 0.986% graphitic carbon ("Cg"), now
totals 25,983,000 tonnes grading 1.81% Cg in the indicated category
(470,300 tonnes of contained graphite) while inferred resources
total 55,038,000 tonnes grading 1.57% Cg (864,100 tonnes of
contained graphite). Grades are minable and diluted. In order to
establish a reasonable prospect of economic extraction in an
open-pit context, mineral resources were limited to an optimized
whittle pit shell using an average graphite price of US$2,000 per
tonne and operating and capital costs were updated from the NI
43-101 Preliminary Economic Assessment ("PEA"). (Mineral resources
are not mineral reserves and do not have demonstrated economic
viability)
The new resource represents a 44% increase in contained graphite
within the indicated category and a 117% increase in contained
graphite within the inferred category over undiluted resources
previously reported in the PEA which used an average price of
US$1,700/tonne and a base case cut off of 1.5%. The 1% cut off used
in the new base case is now more appropriate given higher graphite
prices. The deposit remains open along strike to the north and
south, and down dip to the east. The drilling program and resource
estimate confirm that near surface graphite mineralization exists
in an area that is now over one square kilometer in size. The
deposit is also flat and tabular with good continuity between holes
and there is a high probability that inferred resources can be
upgraded with additional drilling. The waste to ore ratio for the
new resource is 0.27.
Gregory Bowes, Chief Executive Officer, commented that "The new
resource estimate strongly demonstrates that future production
could be scaled to much higher levels to meet anticipated demand
growth from current uses as well as Li ion batteries and other new
applications. We also have the option of designing a 20 or 30 year
pit with much higher grades as the new resource has a potential
mine life in excess of 90 years." He added that "We believe the
size, the scalability and the very high percentage of large flake
graphite in the Bissett Creek deposit makes it unique in the
world."
Bissett Creek Flake Graphite Deposit
2011 Updated Mineral Resources (Diluted)
----------------------------------------------------------------------------
Indicated Inferred
----------------------------------------------------------------------------
%Cg Cut-off In Situ In Situ
Tonnage(i) Graphite(i Tonnage(i) Graphite(i
(metric Cg(%) i) (metric (metric Cg(%) i) (metric
tons) by LECO tons) tons) by LECO tons)
----------------------------------------------------------------------------
0.986 25,983,000 1.81 470,300 55,038,000 1.57 864,100
----------------------------------------------------------------------------
1.227 24,588,000 1.85 454,900 50,472,000 1.62 817,600
----------------------------------------------------------------------------
1.50 19,954,000 1.99 397,100 33,672,000 1.81 609,500
----------------------------------------------------------------------------
1.75 16,031,000 2.34 375,100 21,417,000 2.21 473,300
----------------------------------------------------------------------------
2.0 11,921,000 2.50 298,000 14,584,000 2.37 345,600
----------------------------------------------------------------------------
Relative density 2.63t/m3, 10% dilution, 90% mine recovery, (i)rounded to
nearest 1k, (ii)rounded to nearest .1k
Effective September 12, 2011
The Company is currently completing a bankable Feasibility Study
("FS") which will be based on indicated resources only. The FS is
expected to be completed and filed on Sedar by year end. All mine
permitting is expected to be completed in the first quarter of 2012
at which time the Company will be in a position to initiate
construction subject to positive results from the FS and the
availability of financing.
The new mineral resource estimate was prepared by Francois
Thibert, M.Sc. P. Geo. from SGS Canada Inc. (Geostat), independent
Qualified Person under NI 43-101, using the Canadian Institute of
Mining, Metallurgy and Petroleum (CIM) Standards on Mineral
Resources and Reserves, Definitions and Guidelines. Don Baxter,
P.Eng, President of the Company and a "Qualified Person" under NI
43-101, is responsible for and has reviewed and approved the
technical content of this press release.
The mineral resources were estimated using analytical data from
50 recent surface drill holes and 162 historical surface drill
holes for which 2,745 samples were assayed for Cg using the LECO
analytical method. The deposit was historically drilled on an
approximately 64m x 46m drill pattern with one area drilled on a
25m x 25m grid. Recent drilling was carried out on a wider 100m x
100m grid. Interpretation on 25m spaced N68 degrees sections and
modeling of a 3D wireframe envelope was completed to outline the
mineralized graphitic horizon. A block model of 10 m (E-W) by 10 m
(N-S) by 6 m (vertical) was interpolated using geostatistical
methods (ordinary kriging) within the mineralized envelope. It
covers a strike length of approximately 1,300m and it reaches a
maximal depth of 100m below surface. Spatial continuity of the Cg
composites was assessed by variography and it showed good
continuity of grade in almost all directions within the horizontal
plane but very limited continuity within the vertical plane. An
anisotropic search ellipsoid was selected for the grade
interpolation process based on the analysis of the spatial
continuity of Cg composites. 6m bench composites were used to
reflect an assumed bench height of 6m. No capping was applied to
composites Cg grades.
About Northern Graphite Corporation
Northern Graphite Corporation is a Canadian company that has a
100% interest in the Bissett Creek graphite project, located 17kms
from the Trans Canada highway between Ottawa and North Bay,
Ontario.
Graphite prices have increased substantially due to the ongoing
modernization of China and other emerging economies which has
resulted in strong demand from traditional steel and automotive
markets. In addition, new applications such as lithium ion
batteries, fuel cells and nuclear power have the potential to
create significant incremental demand growth. It takes 20 to 30
times as much graphite as lithium to make a Li ion battery and
their use in the growing EV/HEV market is expected to require
significant increases in graphite production. However, graphite
production and exports from China, which produces 70% of the
world's supply, are expected to decline and an export tax and a
licensing system have been instituted. Both the European Union and
the United States have declared graphite a supply critical
mineral.
Northern Graphite is well positioned to benefit from this
compelling supply/demand dynamic with a near term development
project located in Canada and close to infrastructure. Almost 100%
of Bissett Creek production will be large flake, high purity
graphite which is required for high value, high growth
applications. Additional information on Northern Graphite
Corporation can be found under the Company's profile on SEDAR at
www.sedar.com and on the Company's website at www.northern
graphite.com.
This press release contains forward-looking statements, which
can be identified by the use of statements that include words such
as "could", "potential", "believe", "expect", "anticipate",
"intend", "plan", "likely", "will" or other similar words or
phrases. These statements are only current predictions and are
subject to known and unknown risks, uncertainties and other factors
that may cause our or our industry's actual results, levels of
activity, performance or achievements to be materially different
from those anticipated by the forward-looking statements. The
Company does not intend, and does not assume any obligation, to
update forward-looking statements, whether as a result of new
information, future events or otherwise, unless otherwise required
by applicable securities laws. Readers should not place undue
reliance on forward-looking statements.
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.
Contacts: Northern Graphite Corporation Gregory Bowes CEO (613)
241-9959 Northern Graphite Corporation Don Baxter P.Eng President
(705) 789-9706
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