MONTREAL, June 6, 2018 /CNW Telbec/ - SRG Graphite
Inc. (TSXV: SRG) ("SRG" or the "Company") is pleased to report
its maiden resource estimate for the 100%-owned Gogota
nickel-cobalt deposit located in the Republic of Guinea. The mineral resource estimate,
prepared by Montréal based Met-Chem, a division of DRA Americas
Inc. ("Met-Chem/DRA"), includes a pit-constrained inferred resource
of 44.9 million tonnes ("Mt") of mineralized material grading 1.28%
nickel ("Ni") for 573,040 tonnes ("t") of contained nickel. The
cobalt ("Co") grade of the resource is 0.13% Co for 59,560t of
contained cobalt. The resource also contains 29.4 grams per ton
("g/t") of scandium ("Sc") for 1.17 tonnes of contained scandium in
the limonitic portion of the deposit.
The highlights of the pit constrained estimate are as
follows:
- 44.9 Mt of mineralized weathered material (limonite and
saprolite) from surface to 40 meters
- 1.28% nickel, 0.13% cobalt, 29.4g/t scandium
- 38Mt of limonite material grading 0.15% Co for 57,140 t of
in-situ cobalt
- Preliminary strip ratio of 0.23
Mineral resources were based on 51 vertical drill holes carried
out over the Gogota deposit in 2012-2013. 31 drill holes were
drilled over a 200-meter by 400-meter grid and the remaining 20
were drilled over a 200-meter by 200-meter grid.
SRG will file a NI 43-101 technical report supporting the
mineral resource estimate with SEDAR within 45 days of the issuance
of this press release.
"The Met-Chem/DRA resource estimate demonstrates the exceptional
potential of the Gogota project and reaffirms the tremendous
geological potential in the sub-region" said Dr. Marc-Antoine Audet, Lead Geologist and Qualified
Person ("QP") for SRG.
"While our focus remains on bringing our Lola graphite deposit
into production, we are investigating the best way to pursue the
development of the Gogota deposit given its significant potential
for value creation" said Ugo
Landry-Tolszczuk, President and Chief Operating Officer of
SRG.
Resource Summary
The mineral resource for the Gogota project incorporates assay
results from 51 vertical diamond drill holes representing 1,361
meters. 800 samples were sent for analysis in 2013 representing 31
drill holes and the remaining 425 samples representing 20 drill
holes were sent for analysis in 2018 for a total 1,225 samples
representing all 51 drill holes. The maiden resource is established
for the weathered profile of the deposit, from surface to a depth
ranging from surface to approximately 40 meters with an average
thickness of 22 meters. The surface area of the deposits covers
1.96 kilometers-squared.
Core logging and sampling were performed at the Company's
facility in the village of Gogota. Sample preparation was performed
by Veritas Laboratory in Abidjan,
Côte d'Ivoire. Pulp samples were delivered to Activation
Laboratories Ltd. ("ActLab"), Ancaster,
Ontario, Canada. All samples were assayed for nickel, cobalt
and all major oxides using peroxide fusion XRF. Scandium was
determined by inductively coupled plasma optical emission
spectrometry.
The estimate was prepared using a block model constrained with
3D wireframes of the principal mineralized domains. Values for
nickel, cobalt and scandium, were interpolated using
inverse-distance ("ID") interpolation methodologies on 40 × 40 ×
2m blocks. A preliminary open pit
optimization algorithm was run on the estimated grade block model
to constrain the resources and to support the Canadian Institute of
Mining, Metallurgy and Petroleum's ("CIM") requirement that mineral
resources have "reasonable prospects for eventual economic
extraction." Only mineralization contained within the preliminary
pit shell has been included in the resource estimate.
The base case mineral resource estimate is summarized in the
following table at a cut-off grade of 0.07% Co in the limonite
facies of the profile and 0.70% Ni in the transition and saprolite
layers together. Sensitivity estimates were conducted at 0.10% Co
and 1.0% Ni, and 0.12% Co and 1.2% Ni in limonite and
transition/saprolite respectively. The resource estimate and
sensitivities are established with data from boreholes drilled in
2012 and 2013.
Base Case Mineral
Resources
|
Cut-off-grade
|
Facies
|
Tonnes
|
Ni
|
Co
|
Sc
|
Fe
|
MgO
|
Ni
|
Co
|
Sc
|
|
|
Mt
|
%
|
%
|
g/t
|
%
|
%
|
t
|
t
|
kg
|
0.07% Co
|
Limonite
|
38.00
|
1.20
|
0.15
|
31
|
46.20
|
0.81
|
454,500
|
57,140
|
1,166,200
|
0.7% Ni
|
Transition
|
1.34
|
2.18
|
0.05
|
20
|
17.81
|
12.30
|
29,200
|
650
|
-
|
0.7% Ni
|
Saprolite
|
5.55
|
1.61
|
0.03
|
18
|
13.17
|
23.90
|
89,340
|
1,770
|
-
|
|
Total
|
44.89
|
1.28
|
0.13
|
29
|
41.27
|
4.01
|
573,040
|
59,560
|
1,166,200
|
Sensitivity 1:
0.10% Co, 1.0%Ni
|
Cut-off-grade
|
Facies
|
Tonnes
|
Ni
|
Co
|
Sc
|
Fe
|
MgO
|
Ni
|
Co
|
Sc
|
|
|
Mt
|
%
|
%
|
g/t
|
%
|
%
|
t
|
t
|
kg
|
0.10% Co
|
Limonite
|
33.22
|
1.25
|
0.16
|
31
|
47.01
|
0.82
|
414,800
|
53,100
|
1,015,900
|
1.0% Ni
|
Transition
|
1.24
|
2.29
|
0.05
|
20
|
17.67
|
13.06
|
28,300
|
600
|
-
|
1.0% Ni
|
Saprolite
|
4.69
|
1.75
|
0.03
|
17
|
13.68
|
23.92
|
82,000
|
1,600
|
-
|
|
Total
|
39.15
|
1.34
|
0.14
|
29
|
42.09
|
3.97
|
525,100
|
55,200
|
1,015,900
|
Sensitivity 2:
0.12% Co, 1.2%Ni
|
Cut-off-grade
|
Facies
|
Tonnes
|
Ni
|
Co
|
Sc
|
Fe
|
MgO
|
Ni
|
Co
|
Sc
|
|
|
Mt
|
%
|
%
|
g/t
|
%
|
%
|
t
|
t
|
kg
|
0.12% Co
|
Limonite
|
28.58
|
1.27
|
0.17
|
31
|
47.64
|
0.77
|
363,400
|
47,900
|
875,800
|
1.2% Ni
|
Transition
|
1.16
|
2.36
|
0.05
|
19
|
17.60
|
13.57
|
27,500
|
600
|
-
|
1.2% Ni
|
Saprolite
|
4.05
|
1.85
|
0.03
|
17
|
14.11
|
23.74
|
74,900
|
1,400
|
-
|
|
Total
|
33.79
|
1.38
|
0.15
|
29
|
42.58
|
3.97
|
465,800
|
49,800
|
875,800
|
|
|
Notes:
|
1)
|
CIM definitions (May
10, 2014) observed for classification of mineral
resources.
|
2)
|
Block bulk densities
interpolated from specific gravity measurements taken from core
samples.
|
3)
|
Resources are
constrained by a Lersch Grossman (LG) optimized pit shell using
MineSight software.
|
4)
|
Pit shell defined
using 30-degree pit slope, $USD 5.5/lbs Ni, $USD 30/lbs Co, $USD
0.0/g Sc, $USD 2.00/t mining costs, $USD 43/t processing costs,
$USD 3.50/t G&A and $USD 175/t for concentrate transportation
costs.
|
5)
|
Mineral resources are
not mineral reserves and have not demonstrated economic viability.
The estimate of mineral resources may be materially affected by
mining, processing, metallurgical, infrastructure, economic,
marketing, legal, environmental, social and governmental factors
("Modifying Factors").
|
6)
|
Numbers may not add
due to rounding.
|
7)
|
Effective Date of
Resource estimate is June 6th, 2018.
|
About Met-Chem/DRA
Met-Chem, a division of DRA Americas Inc., was originally
established in 1969 as a consulting engineering company,
headquartered in Montréal, and provides a wide range of technical
and engineering services. Met-Chem is well-recognized for its
capabilities in mining, geology and mineral processing and has a
talented team of engineering, technical and project management
personnel with experience in North
America, Latin America,
Europe, West Africa and India. DRA is a multi-disciplinary global
engineering group that originated in South Africa and delivers mining, mineral
processing, energy, water treatment and infrastructure services
from concept to commissioning, as well as comprehensive operations
and maintenance services for the mineral resources, water,
agriculture and energy sectors. DRA has offices in Africa, Australia, Canada, China, India
and the United States.
Qualified Person
Met-Chem/DRA's consultant, Schadrac Ibrango, P. Geo was
responsible for estimating the mineral resources and has reviewed
and approved the contents of this press release. Mr. Ibrango is a
Qualified Person ("QP"), independent of SRG Graphite, within the
meaning of NI 43-101 – Standards of Disclosure for Mineral Projects
of the Canadian Securities Administrators.
The Gogota deposit resource is under the direct supervision of
Dr. Marc-Antoine Audet, P.Geo., Lead
Geologist, SRG, and a QP as defined by National Instrument.
ABOUT SRG
SRG is a Canadian-based company focused on developing the Lola
graphite deposit and the Gogota nickel-cobalt deposit, both located
in the Republic of Guinea,
West Africa. SRG is committed to
operating in a socially, environmentally and ethically responsible
manner.
For additional information, please visit SRG's website at
www.srggraphite.com.
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.
Forward-Looking Statements
This press release contains "forward-looking information" within
the meaning of Canadian securities legislation. All information
contained herein that is not clearly historical in nature may
constitute forward-looking information, including references to the
plans and project of the Company such as proceeding with production
at the Company's Lola Project, proceeding with exploration
activities on its permits including Lola and Gogota. Generally,
such forward-looking information can be identified by the use of
forward-looking terminology such as "potential", "high-potential",
"expected", "optimistic", "looking forward", "moving forward", or
variations of such words and phrases or state that certain actions,
events or results "may", "could", "would" or "might".
Forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to: (i)
volatile stock price; (ii) the general global markets and economic
conditions; (iii) the possibility of write-downs and impairments;
(iv) the risk associated with exploration, development and
operations of mineral deposits; (v) the risk associated with
establishing title to mineral properties and assets; (vi)
fluctuations in commodity prices; (vii) the risks associated with
uninsurable risks arising during the course of exploration,
development and production; (viii) competition faced by the issuer
in securing purchasers, off-taker markets, clients and experienced
personnel and financing; (ix) access to adequate infrastructure to
support mining, processing, development and exploration activities;
* the risks associated with changes in the mining regulatory regime
governing the issuer; (xi) the risks associated with the various
environmental regulations the issuer is subject to; (xii) risks
related to regulatory and permitting delays; (xiii) risks related
to potential conflicts of interest; (xiv) the reliance on key
personnel; (xv) liquidity risks; (xvi) the risk of litigation; and
(xvii) risk management.
Forward-looking information is based on assumptions management
believes to be reasonable at the time such statements are made,
including but not limited to, continued exploration activities, no
material adverse change in metal prices, exploration and
development plans to proceed in accordance with plans and such
plans to achieve their stated expected outcomes, receipt of
required regulatory approval, and such other assumptions and
factors as set out herein. Although the Company has attempted to
identify important factors that could cause actual results to
differ materially from those contained in the forward-looking
information, there may be other factors that cause results not to
be as anticipated, estimated or intended. There can be no assurance
that such forward-looking information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such forward-looking information. Such
forward-looking information has been provided for the purpose of
assisting investors in understanding the Company's business,
operations and exploration plans and may not be appropriate for
other purposes. Accordingly, readers should not place undue
reliance on forward-looking information. Forward-looking
information is given as of the date of this press release, and the
Company does not undertake to update such forward-looking
information except in accordance with applicable securities
laws.
SOURCE SRG Graphite