Great Lakes Graphite (GLK-V) May 28, '15 is pleased to provide the following update on its activities regarding the refurbishment of the Matheson Micronization Facility, leased from Northfil Resources Limited and located in Matheson, ON as well as the ongoing development work being conducted by SRK in completing a compliant NI 43-101 Resource Estimate on the Lochaber Graphite project, in Buckingham, Quebec, located 30 km from Ottawa, Ontario.
Matheson Micronization Facility
The Classifier Milling Systems (CMS) units have been removed from the mill and are currently in the CMS machine shop, located in Orangeville, Ontario, where they are undergoing a complete refurbishment. The units will be modified to include additional grinding hammers and to be capable of faster rotation in order to achieve the very fine micron grades GLK will be producing for its customers.
Additional testing will also be completed at the CMS pilot plant on graphite feedstock from Brazil. The test work will verify and pinpoint operating parameters to allow for a smooth transition to full scale production, and will also produce pilot plant samples that will be sent to several potential North American customers to allow for pre-qualification of GLK's innovative products.
Norfab Construction Ltd of Porcupine, Ontario has been contracted to complete all mechanical work and modification within the Matheson Mill over the next few months, including re-installation of the CMS units, ducting, cyclone installation, and other general mechanical and repair work required to bring the facility to operational capacity.
Laforest ElectRick of Timmins has been selected to complete the electrical upgrades and components needed to properly supply lighting, power and heating to the mill. The main focus is one of efficiency; very low consumption LED lighting are being evaluated to properly light the facility while consuming as little energy as possible. Design of plant operations and plans for refurbishing and restarting the mill are being done in accordance with lean principles thereby positioning the project for early success and maximum efficiency.
The first shipment of -100 mesh +95% C(g) graphite feedstock has been ordered from Brazil through DNI Metals, the marketing partner of GLK. The shipment needed for commissioning and customer product sampling will arrive at the Matheson Micronization Facility with the assistance of our key logistical partner, Willson International, to live-track our feedstock and broker it into Canada in the most efficient manner possible.
NI 43-101 Resource Estimate on the Lochaber Graphite Project
Work on the Lochaber Resource Estimate has been substantially completed by SRK Consulting including the compilation of the drill program data carried out on the property as well as 3D modeling and a well-defined pit optimization report. A topographical drone survey was completed this spring which was required for further property delineation and assessment. That optimization report is now being compiled by Sebastien Bernier of SRK Consulting. GLK management expects to be in receipt of this finalized report this week and have the results of the Resource Estimate out for public dissemination shortly following an internal review.
Lochaber Graphite Hydrothermal Purity Analysis
GLK continues to work closely with personnel at Process Research ORTECH, ("PRO"), in Mississauga, ON to optimize recovery rates, on purification and on particle size distribution analysis. The presence of hydrothermal graphite was discovered on the Lochaber Property in March 2015 by PRO during a routine head grade analysis of the bulk sample (completed August, 2014) on the -140 graphitic material, which represents more than 20% of the deposits' particle size distribution average. Further analysis was conducted by AGAT Labs, where all assays for graphitic carbon, performed using the IR assay method, yielded results higher than 98%.
Additional material was collected from the Lochaber Property over the past two weeks which is currently being analyzed and tested for purity levels at AGAT. The results of these tests will be announced shortly.
A primary characteristic of hydrothermal graphite is the ability to create high purity concentrate. Purifying graphite to the levels required for high technology applications involves energy intensive processes. Material that can be concentrated to 98%+ by floatation methods has excellent potential as an input to the process that purifies material further, up to 99.9%+.
Great Lakes CEO, Paul Gorman commented on the progress by stating, "Having a world class organization like SRK manage our geological modeling has given our team the confidence and reassurance that the information and reporting tools will lead to a full understanding of our project and the first formal cut at the costs associated with project development and production. As well, having high purity hydrothermal material in the resource positions the company with an attractive product mix, should the project be advanced to production. We look forward to releasing the resource estimate shortly and we have already started the process of speaking with graphite customers who have shown a keen interest in the financing of a mill at Lochaber to begin North American production."
"In addition to the substantial progress we are making with the resource, we also continue to develop the revenue generating part of our business which includes full commissioning of the Matheson Micronization Facility in the 4th quarter. That Matheson Facility is being powered up to supply high quality upgraded graphite products to a well-developed north American based customer base. Our new sales office in Boston is in full swing, and is working with a strong set of initial potential customers who have all requested and are awaiting product samples."
Gorman also went on to say, "Great Lakes is on the threshold of having a project with a compliant resource. We have secured a reliable supply of plant feedstock from a large Brazilian supplier and have established a fully integrated sales and marketing office that is strategically located near our potential markets. We are now just a few months away from initiating production at Matheson. Each day brings us one step closer to fulfilling our mandate and realizing our vision to become a vital catalyst in the vertical integration of the graphite industry."
Boston Sales and Marketing Office
The Company is also pleased to announce the recent launch and opening of a Sales and Marketing office in Concord, Massachusetts, in Metrowest Boston. This office provides the corporation with a footprint in an area with access to several of our key markets and customer prospects. In addition to product sampling and sales, all corporate marketing activities including brand development, messaging and collateral design will be conducted from the Concord office.
The office is available to Great Lakes Graphite as a full member of The Wheelhouse at The Bradford Mills. The Bradford Mills has a proud industrial history as the original home of the Bradford Furniture Company and subsequently, the Allen Furniture Company. The three factory buildings have been renovated and converted into modern offices and facilities that house a vibrant community comprised of dozens of small businesses, independent professionals and artists.
About Great Lakes Graphite: Great Lakes Graphite Inc. is an industrial minerals company focussed on bringing carbon products to a well defined market through a vertically integrated supply chain.
As there is currently no significant graphite production in North America, Great Lakes Graphite has the ability to become one of the first domestic suppliers to a growing regional customer base that requires high quality natural graphite, where pricing and demand continue to rise.
The Company, through strategic acquisitions and capable management intends to become a leader in the industrial minerals marketplace.
The Company through its Innovations Division is currently recommissioning an Ontario based Micronization Facility for re-start in late 2015 to achieve the following objectives:
Establish a position in the upgraded graphite products market with North American customers.
Create a competitive and disruptive advantage by leveraging existing assets.
Pursue an accelerated timeline to cash flow and revenue by micronizing and upgrading flake graphite, enabled by supply agreements with current graphite producers.
The Lochaber Graphite Deposit is located just 30km east of Ottawa, in southwestern Québec. The Company has also entered into option and joint venture agreements with Eloro Resources Inc.(ELO-V) on the Summit-Gaber Cobalt property located in the La Grande Greenstone Belt in the Baie James region of Québec. Further information regarding Great Lakes can be found on the Company's website at: www.GreatLakesGraphite.com.
Great Lakes Graphite trades with symbol GLK on the TSX Venture Exchange and currently has 95,304,075 shares outstanding (139,012,966 fully diluted).
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Great Lakes Graphite Inc.
Paul Ferguson
Chief Marketing Officer
1-800-754-4510 x106
PFerguson@GreatLakesGraphite.com
Great Lakes Graphite Inc.
Paul Gorman
Chief Executive Officer
1-800-754-4510 x109
PGorman@GreatLakesGraphite.com |
