Alabama operator SGS starts building Coosa pilot plant
2015-09-15 10:01 ET - News Release
Mr. Donald Baxter reports
ALABAMA GRAPHITE CORP. ANNOUNCES CONSTRUCTION OF PILOT PLANT WITH 200-TON BULK SAMPLE OF COOSA GRAPHITE PROJECT MATERIAL FROM COOSA COUNTY, EAST-CENTRAL ALABAMA, USA
Alabama Graphite Corp. has initiated the pilot plant at SGS Mineral Services of Lakefield, Ont., for the company's flagship 100-per-cent-owned Coosa graphite project, located in Coosa county, east-central Alabama. In addition to running the company's pilot plant, SGS will also conduct a variability analysis, flowsheet optimization and concentrate analysis of the Coosa graphite material.
Construction of the Coosa graphite project pilot plant is currently under way, with mechanical commissioning targeted for Sept. 30, 2015. AGC's pilot plant was designed, is currently being built and will be operated by SGS and managed by graphite-industry veteran metallurgist Oliver Peters, MSc, PEng, MBA (consulting metallurgist for SGS and principal metallurgist of Metpro Management Inc.). The pilot plant is anticipated to result in the production of multiple tons of graphite concentrate for the company's specialty graphite development initiatives, in addition to conveying material to several potential offtake partners for evaluation. As announced on June 25, 2015, AGC has commenced the testing of graphite from its Coosa property for use in lithium-ion batteries, specifically the production of coated spherical graphite (CSPG or battery-ready graphite) for use in lithium-ion battery anodes.
The company excavated approximately 200 tons total of graphitic material from the Coosa graphite project from 10 pit locations within the resource grid. The specific pit locations were targeted by Pierre Desautels, PGeo, principal geologist of AGP Mining Consultants Inc. of Barrie, Ont., in conjunction with Metal Mining Consultants Inc. of Highlands Ranch, Colo., while working on updating the Coosa graphite project's resource model in support of the forthcoming updated mineral resource estimate. AGP was awarded the contract for the Coosa Graphite project's preliminary economic assessment (PEA) (see news release dated July 27, 2015), scheduled for completion in fourth quarter of 2015. As announced on July 23, 2015, the company's updated mineral resource estimate is currently under way with Metal Mining Consultants and is scheduled for completion by the end of this month (September, 2015).
The specific locations of the 10 pits within the resource grid were selected to accurately represent the full spectrum of the deposit -- from the spatial extent of the deposit, to the variability in grade and flake-size distribution demonstrated during exploration. In August, 2015, the company excavated approximately 20 tons of graphitic material from each pit. The excavated material was stockpiled and subsequently crushed and bagged in one-tonne supersacks on the Coosa property. Nine flatbed trucks drove to the Coosa graphite project, loaded a total of 180 supersacks and transported the material directly to SGS, underscoring the Coosa project's ease of access and established area infrastructure.
Co-chief executive officer Donald Baxter, PEng, commented: "AGC has reached yet another significant milestone with the commissioning of our pilot plant at SGS, which is a critical component of Coosa's mine development plan. By the fourth quarter this year, we expect to have multiple tons of our finished graphite for our specialty graphite development initiatives (namely coated spherical graphite for use in anodes in the expanding lithium-ion battery market), and to convey to several potential offtake partners for evaluation. I recently spent one week onsite at the Coosa property to supervise the preparation of the bulk sample, and was pleased with efficiency of our team and the ease of preparing the material for transport.
"As one of very few mining engineers outside China to have ever mined and processed flake graphite, I can attest to the advantageous characteristics of our weathered (oxidized) soft, graphitic material," Mr. Baxter said.
President and co-chief executive officer Ron Roda also attended the Coosa graphite project to oversee operations and to join Mr. Baxter in meeting and touring the property with local stakeholders, including Coosa County Probate Judge and chairman of the Central Alabama Electric Cooperative, Terry Mitchell, and Coosa County Commissioner, Paul J. Perrett, who were on hand to observe the bulk sample preparation activities. Mr. Roda stated, "After meeting with Judge Mitchell and Mr. Perrett, we are very pleased with the support AGC has received from various levels of government from within the state and, in particular, our local stakeholders."
Alabama Graphite remains on schedule to publish the PEA in fourth quarter 2015, incorporating the company's drill results from 2012 to summer 2015, and the forthcoming updated National Instrument 43-101 mineral resource estimate in September, 2015.
Qualified person
Donald K.D. Baxter, PEng, co-chief executive officer and executive director, is a qualified person as defined by National Instrument 43-101 guidelines, and has reviewed and approved the technical content of this press release.
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