Alabama Graphite drills 55 ft of 3.65% Cg at Coosa
2014-09-16 07:07 ET - News Release
Dr. Douglas Oliver reports
ALABAMA GRAPHITE REPORTS HIGHER GRADE, NEAR SURFACE (OXIDIZED ZONE) INTERCEPTS WITHIN NEW GEOPHYSICAL TARGETS AT ITS COOSA PROJECT, ALABAMA, USA
Alabama Graphite Corp. has released assay results from the summer 2014 sonic drilling program at its Coosa graphite project in Alabama. Sonic drilling was chosen because of its ability to drill on established roads without extensive pad preparation as well as accommodating the company's desire to economically and preferentially test only the upper oxidized portions (zero to 65 feet in depth) of individual targets identified by the airborne survey completed in May, 2014. The company's existing National Instrument 43-101 resource estimate identifies an indicated resource of 38 million tons at 2.60 per cent graphitic carbon (Cg), the largest indicated flake graphite resource in the United States, and an inferred resource of 27 million tons at 2.87 per cent Cg. The assay results show two of the new anomalies with intercept grades of 3.27 per cent Cg and 3.65 per cent Cg. The results also indicate that the company's existing inferred resource can be upgraded and could potentially increase the overall grade of the resource.
The sonic drill program consisted of 24 holes totalling 1,303 feet and was designed to accomplish the following objectives:
1. To conduct a preliminary evaluation of new exploration targets, east and/or south of the previously defined resource, outlined by the airborne geophysical (TDEM) survey conducted earlier this year (18 holes);
2. To explore for mineral continuity within and beyond the defined mineral resource in the previously drilled northern strat section to evaluate the oxidized portion not evaluated by core drilling (five holes);
3. To explore for mineral extension to the southeast of the grid where the existing resource is open (one hole: AGC-14-K03S).
A surface casing was left in place in each of the holes to allow for deepening with a standard core drill, if desired.
Highlights from assay results
-Holes AGC-14-10S and AGC-14-11S intercepted weathered graphitic schist at the surface to depths of 55 feet and 60 feet with average grades of 3.65 per cent Cg and 3.27 per cent Cg, respectively, in new target areas identified by both geophysics and channel sampling.
-Holes AGC-12S and AGC-14-13S intercepted weathered graphitic schist at the surface to depths of 55 feet and 53 feet with average grades of 2.84 per cent Cg and 2.89 per cent Cg, respectively, within the inferred resource area of the 2012 northern strat section.
COMPLETE DRILL RESULTS FROM THE SONIC DRILLING
Drill hole TD Cg Significant intercept Cg
(ft) (%) (ft) (%)
AGC-14-01S 65 2.18 10 to 30 2.73
AGC-14-02S 55 2.36 15 to 55 3.00
AGC-14-03S 60 2.56 0 to 20 2.81
AGC-14-04S 60 1.60
AGC-14-05S 60 1.47
AGC-14-06S 58 2.27 15 to 58 2.54
AGC-14-07S 60 2.41 30 to 50 3.06
AGC-14-08S 55 2.58 10 to 35 3.17
AGC-14-09S 60 0.22
AGC-14-10S 55 3.65 0 to 20 4.06
AGC-14-11S 60 3.27 10 to 40 3.93
AGC-14-12S 53 2.65 10 to 20 4.22
AGC-14-13S 53 2.89 10 to 35 4.02
AGC-14-14S 55 2.31 0 to 35 2.90
AGC-14-15S 57 1.50
AGC-14-16S 55 1.96 30 to 55 3.10
AGC-14-17S 50 1.34
AGC-14-18S 45 2.30 10 to 25 2.72
AGC-14-19S 25 0.18
AGC-14-20S 45 2.93 10 to 45 3.04
AGC-14-21S 65 2.26 40 to 55 2.60
AGC-10S 55 2.70 25 to 55 3.67
AGC-12S 55 2.84 25 to 50 3.66
AGC-14-K03S 47 2.47 15 to 47 2.94
A map showing the resource grid and the new drill hole locations can be found on the company's website.
"We are encouraged with the results of the sonic drill program," stated Dr. Douglas Oliver, vice-president of exploration. "The higher average grades seen in several new targets are worthy of follow-up testing and drilling. Based on the sonic drill results from both the northern strat section and to the southeast of the grid, we have the potential to expand the footprint of the existing oxidized resource. Coupled with the unique low work hardness index of the oxidized zone and the Coosa project's proximity to infrastructure, increases to the average grade of the resource are anticipated to have a positive impact on our Coosa project's economics. In particular, we look forward to initiating a PEA later this year where we can quantify the capex and opex advantages of the Coosa project compared to other North American graphite deposits."
The results of the sonic drill program will be used to guide future exploration to occur this year, including an infill drilling program of the inferred resource area and further testing of the new target areas that will include both drilling and trenching in the hearts of the newly found geophysical anomalies. The sonic holes just completed were mostly located along the peripheries and/or along strike of the geophysical targets where road access was already available, but not necessarily in the best location based on the geophysics results warranting immediate further exploration to help identify the most optimal material on the property.
Rick Keevil, PGeo, a director of the company and vice-president of project development, who is a qualified person as defined by National Instrument 43-101, has reviewed the contents of this press release.
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