Great Lakes Graphite (GLK-V) May 20, '14 has acquired the Lochaber graphite deposit, located in the prolific Buckingham graphite region in Outaouais/Gatineau, Que. After an extensive due diligence process, the company finalized the deal, acquiring 100 per cent of the former graphite producer from Rock Tech Lithium Inc.
The property purchase agreement calls for the payment of $100,000 and five million shares upon execution of the purchase and sales agreement, a further $200,000 and five million shares upon the completion of a National Instrument 43-101 resource estimate of the deposit, and a final payment of five million shares upon the completion of a preliminary economic assessment. Completion of the transaction is conditional upon Toronto Stock Exchange approval.
Paul Gorman, chief executive officer of Great Lakes Graphite, commented: "Late last year, we began discussing our plan to meet growing customer demand for high-purity, high-value graphite products. The Lochaber graphite property acquisition is a transformative event that represents an essential element of our plan to acquire advanced flake-graphite properties that fast-track the company to production. We are finalizing [an] NI 43-101 resource estimate on the property, and are concurrently working on metallurgy and engineering studies." Mr. Gorman also went on to say, "As there are currently no graphite mines producing in North America, Great Lakes Graphite has the opportunity to become one of the first producers to supply a growing regional customer base that requires high-quality flake graphite."
Highlights of the Lochaber acquisition:
- Great Lakes Graphite is acquiring 100-per-cent interest of the Lochaber property comprising 151 claims covering over 9,100 hectares land in Quebec from Rock Tech Lithium Inc.
- The property is road accessible, has excellent infrastructure and is close to major ports. Water, power and trained manpower are available locally.
- The property has three historical graphite occurrences (the McLaren, Kelly and Burke showings), and two past-producing graphite mines (the Mayo and Plumbago mines).
- Large- and jumbo-flake graphite has been identified in drill core, surface samples and outcrops.
- Rock Tech completed over 7,000 metres of drilling in late 2012, eight trenches and ground geophysical surveys in the Plumbago mine area.
- The exploration work has delineated two areas of graphite mineralization: conductor A is 700 metres long, 27 m to 100 m wide and drilled down to 150 m below surface; and conductor C is 600 m long, 29 m to 82 m wide and drilled down to over 150 m below surface.
The company plans to complete a National Instrument 43-101 resource estimate based on the current exploration data.
Preliminary metallurgical results indicate the following flake size distribution:
- 48-per-cent concentrate at plus 80 mesh;
- 30.5-per-cent concentrate at between 80 and 200 mesh;
- 21.5 per cent below 200 mesh.
The Quebec Ministry of Energy and Mines (MRNF) maintains records of past exploration and development work carried out on mineral claims and filed for assessment credit purposes. The company has acquired all the historical exploration work available on-line on MRNF. Highlights of the information review are provided below.
In 1985 and 1986, Bay Resources & Services Inc. carried out an exploration program comprising 39 drill holes over 10,203 feet (3,110 metres) on the Kelly, McLaren and Burke occurrences, and modelled a historical resource estimate of 90,654 tons (or 82,263 tonnes) at 8 per cent graphite, or 59,609 tons (or 54,091 tonnes) at 10 per cent graphite (source: "GM 43058: Geological Report on the Bay Resources & Services Inc., Graphite Deposit, Lochaber Township, Quebec," dated April, 1986). The author of the report (Daniele Heon, geologist) estimated the tonnage for a volume grading 8 per cent Cg (graphite carbon) or 10 per cent Cg using graphite intersections in the drill core. Each drill hole intersection was extrapolated to 25 feet (7.62 metres) on each side, and the calculated volume was divided by a factor of 13 feet per ton used as specific gravity of marble, the graphite host rock. A qualified person has not done sufficient work to classify the historical estimates as current mineral resources, and the company is not treating the historical estimate as current mineral resources. The company believes that the historic estimate is relevant to an appraisal of the merits of the property and forms a reliable basis upon which to develop future exploration programs.
In 1867 a graphite mill was erected by the Lochia Plumbago Company on the Blanche River to process graphite material that was hauled from various mining properties in the area. During that time, the mill was operated by the Kelly family.
In 1941, a metallurgical test was carried out on a sample from the Kelly occurrence with a head grade of 21.17 per cent carbon. The graphite material was concentrated by flotation, dried and screened on 65 mesh (0.212 millimetre), 120 mesh (0.125 mm) and 150 mesh (0.106 mm). Coarser than 0.212-millimetre-size, 34.37-per-cent material assayed 87 per cent carbon ("GM 14486: Canada Department of Mines and Resources, Ore Dressing and Metallurgical Laboratories Report on Investigation No. 1085," dated Sept. 2, 1941). Similarly, a second sample with head grade of 23.53 per cent carbon, concentrated by flotation, indicated 31.27-per-cent material coarser than 0.212-millimetre size assayed 84.5 per cent carbon ("GM14485: Canada Department of Mines and Resources, Ore Dressing and Metallurgical Laboratories Report on Investigation No. 1084," dated Aug. 30, 1941).
Flake size reported in the 1986 drilling report indicated 0.1 centimetre to 0.5 cm (source: "GM 43058: Geological Report on the Bay Resources & Services Inc., Graphite Deposit, Lochaber Township, Quebec," dated April, 1986).
Future development work
The previous exploration work, which includes over 7,000 metres of drilling, surface trenching and channel sampling, and ground geophysical survey, will provide the basis to carry out NI 43-101-compliant graphite resource estimates on the property. Based on the results of resource estimates, the company will plan preliminary economic assessment (PEA) and environmental baseline studies on the property. Most of the surface rights in the area are held by private owners, therefore community consultation and access rights are an important and continuing aspect of the project.
A map of the Lochaber graphite property is available on-line. greatlakesgraphite.com
For more information on the Lochaber graphite property, please visit the company's website. greatlakesgraphite.com |
