OTTAWA, ONTARIO - (Jan. 28, 2014) - Focus Graphite Inc. (TSX-V: FMS) (OTCQX: FCSMF) (FRANKFURT: FKC) ("Focus" or the "Company") is delighted to announce an update to its National Instrument To announce 43-101 compliant (“NI 43-101”) mineral resource estimate for the Company's 100% owned Lac Knife graphite project in northeast Quebec.
The resource estimate is based on the additional 2012 and 2013 exploration and demarcation drill programs, which included a total of 92 9.103 meters total wells. These achieved the desired goal of upgrading existing displayed and derived resources into the measured and displayed categories. These holes will complement the previous 105 holes with a total length of 9.217 meters.
The measured and indicated resources have now been calculated at a cut-off grade of 3% Cg to 9,6 million tonnes grading 14,77% Cg. In addition, the updated resource estimate, which is shown in the 1 table below, includes 3 million tonnes of 3,1% Cg derived at the same 13,25% Cg cut-off grade.
Table 1. Mineral Resource Estimate for Lac Knife at 3,0% Graphitic Carbon Cut-Off ("Cg")
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The economic viability of mineral resources that are not mineral reserves has not been proven.
Highlights
• The tonnage of measured and indicated mineral resources increased by 3,0% to 92 million tonnes grading 9,6% Cg at a cut-off grade of 14,77% Cg. By comparison, the previous estimate at a cut-off grade of 5,0% Cg 4,9 comprised million tonnes at 15,76% Cg.
• 432.000 tons averaging 3% Cg at a cut-off grade of 23,66% have been upgraded from the displayed to the measured resource category.
• The updated resource estimate increased the in situ graphite content by 81%.
• Most of the 3,0 million tonnes previously classified as Inferred Resource has been successfully upgraded to measured and displayed categories.
• Along the southwestern extension of the Lac Knife deposit, an additional 3,1 million tonnes of inferred resources have been demarcated.
As can be seen in Table 2 below, the tonnage of the resource in the measured and indicated categories increased with the use of 5 4,9's 15,76 cut-off grade of 92 million applied in the Preliminary Economic Assessment ("PEA") % Cg in the PEA increased by 9,5% to 14,86 million tonnes by 778.000% in this latest estimate. This resulted in an increase in the in-situ graphite content of 1,4 tonnes to XNUMX million tonnes in the measured and indicated categories.
In the Inferred Resource category, tonnage compared to 3,0 million tonnes in PEA fell by 2,0% to 2,9 million tonnes in this updated resource estimate. The average content of inferred resources decreased from 15,58% Cg to 13,75% Cg, resulting in an 13,5% decrease in in situ graphite content in this category from 467.000 tonnes to 404.000 tonnes. These changes resulted from an upgrading of a large part of the inferred resources of 3,0 million tonnes in the PEA to the measured and indicated categories as well as from the considerable expansion of the deposit in the south. In the recently delineated South Central Zone, which continues to be considered open by Focus southbound (see Figure 1), an additional 3,1 million tonnes of inferred resources have been demarcated.
Another factor was the reduction in the 5% Cg cut-off grade used in the PEA to 3% Cg in this updated estimate. Decisive for lowering the cut-off grade was a higher sales price and a higher concentrate content.
Table 2. Dependence on changes in the cutoff content and comparison to the previous estimate.
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The rounding of tonnages required by the NI 43-101 reporting standards could lead to obvious variations in tonnages, ore and graphite.
Figure 1. Isometric representation of the major mineralized zones indicating the pit model that includes the resource.
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Don Baxter, President and Chief Operating Officer of Focus Graphite, said, "We are delighted to have further reduced the risks of the Lac Knife project by upgrading and increasing resources. This updated resource will be used for a mineral reserve estimate in the feasibility study currently being prepared by Met-Chem.
"This announcement follows our important announcement of the completion of an 10 Acquisition Agreement with a Chinese conglomerate, recently after China announced that 20% of flake graphite production in Shandong Province will be discontinued. This further underscores the need for reliable, cost-effective production of high quality flake graphite outside of China, "said Mr. Baxter.
He added, "Focus reiterates that the company has the potential to meet this growing demand. The updated resource suggests that the Lac Knife project could produce high quality flake graphite for a long time. "
The updated Mineral Resource is based on 197 historical and recent diamond drill holes with a total length of 18.320 meters. These include the 104 surface diamond drill holes, with a total length of 10.337 meters drilled since 2010 by Focus Graphite.
The mineral resources were reported to have a cut-off grade of 3,0% graphitic carbon ("Cg") within a constraining pit model. Details of the techniques used in the estimation of mineral resources are given in the notes below.
Comments on the mineral resource estimation process
• The mineral resource estimate was made in accordance with the CIM mineral resource definitions referred to in the NI 43-101 Standards of Disclosure for Mineral Projects. Pierre Desautels (P.Geo.), Senior Resource Geologist at AGP Mining Consultants Inc., prepared and approved the release of the mineral resource estimate presented herein in his capacity as an Independent Qualified Person under NI 43-101. Jeffrey Cassoff (Eng.), Senior mining engineer at Met-Chem Canada Inc. and a qualified NI 43-101 expert, has reviewed the technical content of this news release. This Mineral Resource Estimate is an update of the resource valid for the 5. December 2011, which was produced by Roche Limited Consulting Group and later by RPA Consulting in the initial economic evaluation of 30. October 2012 (including a resource classification update).
• All holes are diamond core drilled and sampled and analyzed over the entire length of the mineralized zones at 1,5 meter intervals. During the 2010 drill program, quality control and assurance measures were introduced, which were eventually expanded during the 2012 and 2013 drill programs to include the addition of standard, double, and blank samples and the control analysis to a second laboratory.
• The density measurements were carried out by IOS Laboratory in Chicoutimi (Quebec). The database, which has been managed by the IOS 2010 drill program, includes a total of 5.133 density measurement results. Due to the strong relationship between the sulfur and bulk density estimates, a bulk density model with the same parameters used for the sulfur model was interpolated. The interpolated bulk density model ranges from 2,64 g / cm3 to 3,05 g / cm3 and averages 2,81 g / cm3.
• In-depth geological surveys and section interpretations by Focus Graphite led to the development of a three-dimensional (3D) domain model based on lithology and content limits. Wire modeling resulted in the demarcation of three major mineralized zones with eight minor congestion zones. Within wireframes, the content is usually above 3%, but also reached lows of 1% in lower-valued local zones within the high-domain domains used in the variography studies and the content interpolation constraints.
• To avoid outliers, each statistical domain was individually evaluated and a cap was not necessary. However, with limits of 38% Cg, a limitation of the search scope of 30 x 30 x 30 meters has been imposed to limit the influence of the highest values during the interpolation process.
• The length of the selected composite samples was 3,0 meters.
• Using GEMS © software, a geological 3D block model was generated. The matrix size of the block model is 6 x 6 x 5 meters. Common Kriging was used for all domains with inversive distance and nearest neighbor control models. The interpolation was carried out in several passes, each with increasing search ellipsoid dimensions. The classification of all models was based primarily on the number of passes, the distance to the next mixed sample and the Krige variance. The classification for the measured category was only achieved in the vicinity of the sampling points of the bulk samples. No classification adjustments were made for blocks that were interpolated primarily from historical drill holes, as these were found appropriate for resource modeling purposes.
• It is assumed that the reported mineral resources have reasonable prospects of economic degradation. Met-Chem created using the Lerchs Grossman pit optimization algorithm, design parameters (including cost, sale price and open pit), and concentrator operating parameters derived from the updated initial economic valuation (see 7 November 2013 press release), as well as typical regional cost estimates a pit model;
Sale price: C $ 2.000 per ton (FOB Sept-Iles);
Mill recovery rate: 91,089%;
Concentrate content: 96,6% Ct;
slope of the pit wall: 45 degrees;
mining costs: C $ 6 per tonne lost;
Processing cost: C $ 40,61 per recycled ton;
Transportation costs: C $ 25 per ton of concentrate;
Administration and infrastructure costs: C $ 15 per tonne processed.
• The resulting pit model includes most of the estimated measured, indicated, and inferred resources. The rounding of tonnages required by the NI 43-101 reporting standards could lead to obvious variations in tonnages, ore and graphite.
• The profitability of mineral resources that are not mineral reserves has not been proven. The estimation of mineral resources may be materially affected by aspects such as environmental protection, permits, legislation, legal claims, taxes, socio-political conditions, marketing or other relevant factors.
• The size and content of the Inferred Mineral Resources reported in this estimate are uncertain. So far, no sufficient exploration work has been conducted to classify these inferred mineral resources as indicated or measured mineral resources. It is uncertain if further exploration will result in a revaluation of these into the indicated or measured mineral resource category.
Project Lac Knife
The Lac Knife project comprises 57 2.986,31-wide concessions in the Esmanville Township (NTS map 23B / 11) area, located approximately 27 kilometers south-southwest of the iron mining town of Fermont in the Côte-Nord district of Quebec. In October, 2010 acquired Focus 100% stake in this project. A map of the location of the Lac Knife project is available on the company's website at www.focusgraphite.com.
The mineralization at Lac Knife is embedded in biotite quartz feldspar paragneiss and schist of the formation Nault and is related to the iron formations of the formation Wabush. These correspond to the lower rock strata of the Labrador Trough from the Proterozoic, which were influenced by the Grenville orogenesis in the late Proterozoic. Pronounced rock metamorphism and folding in the context of Grenville orogeny has led to the formation of important concentrations of graphite dominated by large flakes of increased value.
Sampling, analysis and quality control / assurance
All cores were measured on site at the Camp Lac Knife and sent to the IOS facilities in Chicoutimi for sample preparation. Two washers of approximately one quarter of the 4 inch diameter PQ core were taken in parallel on each side of the central axis of the core using a saw. One of the discs was labeled for geochemical analysis while the other was stored as a confirmation sample. The middle parts of the cores are stored for subsequent uses. The length of the samples is for the most part 1,5 meters, deviations range from 0,5 to 1,8 meters. The disc samples were dried at the IOS sample conditioning laboratory prior to preparation for densitometry, size reduction and milling.
After processing, the samples were analyzed for graphitic carbon content using the infrared high-frequency LECO combustion method (internal analytical code LSA-M-B10 for graphitic carbon, ISO 9686: 2004) to the Consortium de Recherche Appliquée en Traitement et Transformation des Substances Minérales ("COREM"), an ISO / IEC 17025: 2005 certified facility in the city of Quebec. For the measurement of the graphitic carbon content, the sample is pretreated with nitric acid and placed in a LECO capsule in the furnace (1.380 ° C) in an acidic acid atmosphere. Carbon oxidizes to CO2. After dehumidification, the gas (CO2) is measured by an infrared detector and a computerized system calculates the concentration of graphitic carbon (% Cg). The total sulfur content was also determined by the LECO method (code LSA-M-B41) (Table 1). To determine the sulfur content, place the sample in a LECO capsule in the oven (1.380º C) until the sulfur oxidizes to SO2. After dehumidification, the gas (SO2) is measured by an infrared detector and a computerized system then calculates the concentration of the total sulfur content (% S).
As part of the quality assurance / control program, approximately 10% of the samples were analyzed by COREM on their total (code LSA-M-B45), organic (code LSA-M-B58), inorganic (code LSA-M-B11) and graphitic (Code LSA-M-B10) carbon content and total sulfur content. Duplicates of these samples were also submitted to ACTLABS Laboratories of Ancaster, Ontario (ISO / EIC 17025: 2005 with CAN-P-1579) for analysis of graphitic carbon (code 5D-C graphitic) and total sulfur content (code 4F-S Combustion Infrared analysis) and to determine the content of 35 other elements using the ICP method (code 1E2 - aqua regia) sent. As part of the quality assurance / control program, IOS included standard, double (saw, crush or mill double) and blank samples in each core sample set.
Qualified experts
Benoit Lafrance (Ph.D., geo (Quebec)), Focus's Vice-President of Exploration, and Don Baxter (P.Eng.), President and Chief Operating Officer of Focus, have considered the technical content of this release to be in their capacity qualified experts within the meaning of the NI 43-101 guidelines. Pierre Desautels (P.Geo.), Senior Resource Geologist at AGP Mining Consultants Inc., prepared and approved the release of the mineral resource estimate presented herein in his capacity as an Independent Qualified Person under NI 43-101. Jeffrey Cassoff (Eng.), Senior mining engineer at Met-Chem Canada Inc. and a qualified NI 43-101 expert, has reviewed the technical content of this news release.
About Focus Graphite
Focus Graphite Inc. is an emerging, mid-sized junior mining developer and developer and provider of technology solutions and business innovation. Focus owns the Lac Knife graphite deposit, located in the Côte-Nord region of northeastern Quebec. The Lac Knife project hosts a NI 43 101 compliant Measured and Indicated Mineral Resource Estimate * of 9,6 million tonnes grading 14,77% (Cg) graphitic carbon in the form of crystalline graphite, and a 3,1 million tonne inferred mineral resource estimate of 13,25 % Cg in the form of crystalline graphite. The company's goal is to become a low-cost producer of technologically advanced graphite and to be a leader in the industry. On the 7. In November 2013, the company released the results of an updated PEA for the Lac Knife project, suggesting that the project has very good potential to become a graphite producer. As a technology-driven company committed to delivering long-term, sustainable shareholder value, Focus Graphite is investing in graphene applications and patents through Grafoid Inc.
Forward-looking statements
This presentation contains forward-looking information under Canadian securities laws. All information contained herein that is not uniquely historical in nature could be forward-looking information. In general, this forward-looking information can be identified by the use of forward-looking terms, such as "Plans," "expects," "does not expect," "anticipates," "budgeted," "estimates," "forecasts," "intends," "does not intend," "believes," and " Modifications of such terms and phrases or statements that "may", "could", "become" or "become" certain actions, events or results. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause the actual results, activities, performance or achievements of the Company to differ materially from those expressed or implied by such forward-looking information, including without limitation but not limited to: (i) volatile stock prices; (ii) the global markets and the economic situation; (iii) the possibility of depreciation and impairment; (iv) the risk associated with the exploration, development and operation of mineral deposits; (v) the risk associated with the acquisition of ownership of mineral properties and assets; (vi) risks associated with joint ventures; (vii) fluctuations in commodity prices; (viii) the risks associated with uninsurable risks that could arise during exploration, development and production; (ix) the competition for the resulting issuer in securing senior personnel and financings; (x) access to an appropriate infrastructure to support mining, processing, development and exploration; (xi) the risks associated with changes in regulatory mining regulations for the resulting issuer; (xii) the risks associated with the different environmental conditions to which the resulting issuer is subject; (xiii) the risks associated with regulatory and approval delays; (xiv) risks associated with potential conflicts of interest; (xv) the reliability of key personnel; (xvi) liquidity risks; (xvii) the risk of potential dilution from the issue of ordinary shares; (xviii) the risk that the Company will not anticipate the resolution of the dividends in the short term; (xix) the risk of litigation; and (xx) risk management. Forward-looking information is based on assumptions that management considers reasonable at the time such statements are made, including, but not limited to, ongoing exploration work, the absence of material changes in metal prices, exploration and development plans that are completed on schedule and deliver the corresponding results Obtaining the required regulatory approvals and other assumptions and factors described herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those in the forward-looking information, there may be other factors that may produce results that are not believed, appreciated or intended. There can be no assurance that any forward-looking information will prove to be accurate. Actual results and future events may differ materially from such forward-looking information. Such forward-looking information has been provided to help investors understand the Company's business, operations and exploration plans and may not be suitable for other purposes. Therefore, readers should not rely on forward-looking information for their investments. Forward-looking information is expressed as of the date of this press release, and the company is under no obligation to update such forward-looking information unless required by applicable securities laws.
Contact:
Don Baxter, P. Eng
President & Chief Operating Officer
705-789-9706
ppgad@pucrs.br
www.focusgraphite.com
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