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News Release - December 15, 2017 5:38 PM ET 

 

 

SRG Graphite Inc. Prepares for Pre Feasibility Study on One of the Largest Surface Outlines in the World, and Demonstrates Excellent Electrochemical Characteristics

 

NEW YORK, NY, December 15,  2017 /Sector Newswire/ -- SRG Graphite Inc. (TSX-V: SRG) recently announced the results of electrochemical characterization of its spherical purified graphite (“SPG”) material produced from the Company’s Lola graphite deposit in the Republic of Guinea, West Africa, one of the largest surface outlines in the world; property highlights include3.22km2 of surface graphite mineralization, 89% large - super jumbo flakes, with no impurities. This news falls on the heels of the Company signing a Memorandum of Understanding for SRG to supply graphite concentrate to Great Lakes Graphite, and the announcing of more strong drilling results from the Company’s Lola Graphite project. The MOU specifies that the Companies will seek to negotiate an agreement for the annual supply of between 5,000 and 20,000 tons of natural flake graphite concentrate.

 

To the left below is excerpt copy of a recent mining journal review of SRG Graphite. To the right below is excerpt copy of SRG Graphite's most recent news.

  

Excerpt from recent mining journal review of SRG Graphite Inc.:

 

SRG Graphite Inc. developing one of the best deposits in the world, in mining-friendly Guinea

 

One of the largest surface outlines in the world; 3.22km2 of surface graphite mineralization, 89% large - super jumbo flakes, no impurities.

 

The share price of SRG.V is poised for upward revaluation to match comparable world class deposits as it advances, fully capitalized, toward scoping study expected hopefully by the end of 2017 (failing that, very early 2018), and Feasibility/production decision in mid-2018.

 

  • Resource size potential; 8.7 km long graphite deposit with an average width of 370m at surface, this Mining Journal projects* (non 43-101) upwards of 150 years of production in the top 20 meters of weathered material alone.

  • Flake size advantage; 89% of graphite flakes are super-jumbo, jumbo, and large (>0.18 mm).

  • Weathering advantage of top ~20 m; Favorable weathering action over million of years has expunged organics from top layer, and freed graphite flakes from the silicate gangue allowing for easy grinding with optimal recovery.

  • Grade advantage; Metallurgical tests on representative surface samples have yielded grades up to 20% carbon with no impurities.

  • Quick-to-market; Company is fully capitalized to rapidly and cost-effectively advance the project to PFS by end of 2017, and Feasibility by mid-2018.

  • Experienced & accomplished management team, skilled technical leadership, in stable mining-friendly jurisdiction, with no environment or infrastructure issues.

 

SRG Graphite Inc. is a Canadian-based mining company focused on advancing its 100%-owned Lola Graphite Deposit in Guinea toward a Pre Feasibility Study expected hopefully by the end of this 2017 (failing that, very early 2018), and Feasibility/ production decision in mid-2018. If everything goes to plan the marketplace should be able to recognize a substantially higher value for the asset, one of the best graphite assets in the world due to its size (8.7 km long with average depth of 370m at surface), the quality of the mineral (89% of graphite flakes are super-jumbo, jumbo, and large, with weathering of the top ~20 m allowing for freeing of flakes, grades up to 20% carbon with no impurities), the stability and friendliness of the jurisdiction, geographically it is on the west side of Africa with direct access to North America and Europe, and with a very strong management team (including the founder of SEMAFO) at the helm able to fast-track the project thru to production decision. A decision that will see SRG selling some of the highest quality graphite available, with an optimal distribution of flakes, in an expanding market.

   

Excerpt of recent (Nov. 29, 2017) news release from SRG:

 

SRG’s Graphite Demonstrates Excellent Electrochemical Characteristics

   

MONTREAL, Nov. 29, 2017 (GLOBE NEWSWIRE) -- SRG Graphite Inc. (TSX-V:SRG) (“SRG” or the “Company”) today announced the results of electrochemical characterization of its spherical purified graphite (“SPG”) material produced from the Company’s Lola graphite deposit in the Republic of Guinea. The characterization tests were performed by Dorfner ANZAPLAN (“ANZAPLAN”) at their facility in Hirschau, Germany.
 

ANZAPLAN tested and reported on three main electrochemical characteristics of SRG’s SPG, important for the lithium-ion battery market: cyclic voltammetry which measures kinetics and hysteresis of the charge/discharge cycle, specific capacity and cycling performance.

  • ANZAPLAN Report: SRG’s Spherical Graphite Electrochemical Characterization Highlights

  • Cyclovoltammetric measurements indicate that the kinetics of SRG’s purified spherical graphite makes it suitable as active material in lithium ion batteries

  • Achieves remarkable reversible capacities of >365 mAh/g, which is very close to the theoretical maximum of 372 mAh/g

Demonstrates above average cyclability, achieving a value of 356 mAh/g after 100 cycles at a cycle rate of 0.5C. This represents ~99% of initial capacity and 96% of theoretical capacity, which is better than the average value for typical uncoated spherical graphite products.

 
Laboratory work and analysis on the Lola graphite concentrate and SPG characteristics are aimed at identifying the best uses of the Company’s graphite and its suitability for use in lithium-ion battery and technology grade graphite applications. These results continue to compare favourably with graphite that is currently available in the marketplace.

 

About Dorfner ANZAPLAN
Dorfner ANZAPLAN is a leading European specialty minerals producer with more than a hundred years of experience in industrial mineral processing, delivering high quality mineral products to different industries. ANZAPLAN was founded in 1985 to become the most independent venture within the Dorfner group of companies, while concentrating the group’s analytical and engineering know-how to serve external customers. (www.anzaplan.com)
 
ABOUT SRG
SRG is a Canadian-based company focused on developing the Lola graphite deposit, located in the Republic of Guinea, West Africa. SRG is committed to operating in a socially, environmentally and ethically responsible manner.

.

 

...click here for full copy of release from source

 

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Nov. 28, 2017:

 

Coris Exercises 2,625,000 SRG Share Purchase Warrants

 

...click here for full copy of release from source

SRG.V currently has a market cap of ~C$102.6 million (~58 million shares outstanding trading at ~$1.77, with no warrant pressure over its head (~65M shares fully diluted)), miniscule compared to other companies with meaningful graphite deposits in the world (see comparison further below) which SRG has advantages over in terms of quality. The share price is apt to appreciate as the Company accomplishes near-term milestones. SRG Graphite Inc., was recently formed (in January 2017) as a standalone Company to receive its flagship asset (the Lola Graphite Property) from Sama Resources (which is busy advancing its own flagship asset in another African country). Sama Resources retains ~43% of the outstanding shares of SRG after the spin-out and recent capitalization, Coris Capital out of Africa owns ~13%, and insiders own ~4% = ~60% in total in very strong hands. It has been a low profile transaction up to now, however that won't last -- going into October-2017 SRG has ~C$3.2 million in the bank, sufficient to complete all objectives through to Feasibility/production decision mid-2018, no further dilution is required.

  

 

Figure 2. (below) Comparison of SRG Graphite Inc. to other deposits

SRG is at a key stage of value creation and on sale; SRG compared to other projects is still very cheap at its current market cap; the comparable deposits portrayed in the image above adjacent the Lola Graphite deposit are in Africa (and of lesser quality graphite), Mason is in Quebec. Each has their own specs and have varying levels of development/improvements, so always never a straight comparison, however it is clear SRG is poised for upside revaluation -- the area (the red ellipse area seen in the image) SRG is targeting for the resource that it will publish later this year with its scoping study is expected to cover ~16% of the surface area of the deposit and involves only the top oxide portion (weathered zone). Compared SRG to Syrah Resources, which has a >US$1 Billion market cap., Syrah only has the one deposit in Mozambique, both comparables are on the same scale in the image above -- you can see the two proposed pits for Syrah are 3.2 km apart and about the same size as the red ellipse area of SRG, clearly SRG is set for significant upside revaluation if all goes to plan.

  

No geological risk, no metallurgical risk, no mining risk, no environmental risk: Interesting for shareholders is that 1) there is no geological risk; the discovery is made. 2) There is no metallurgical risk; the met tests are done and highly favorable. 3) Investors can also can also tick off the mining risk, as it is at surface (not an underground mine). 4) There is no environmental risk; there are no people to move from the deposit and the local village is supportive, and whatever waste SRG is going to put back into the ground after processing is harmless as there is no deleterious chemical elements used in floatation. 5) Execution risk is addressed as SRG has highly experienced mining professionals (e.g. Marc-Antoine Audet, BSc, MSc and Ph.D (Geology), P.Geo, and Benoit La Salle, FCPA, FCA, MBA) that have done this for the past 30 years with no flaws or failures to speak of. Essentially success for SRG from here boils down to execution on the pre-feasibility and feasibility.

 

Figure 3. (right) Outcrop - the vegetation has been peeled back to expose the graphite mineralization properly and sampled in the middle.

   

Figure 4. (below) 3D image of the deposit - The 3D image of the deposit show in grey the outline of the paragonite that is enriched with graphite, it is the outline SRG has mapped at surface of what can be seen visibly.

 

Synopsis of a world-class graphite deposit

 

The Lola Graphite occurrence has a prospective surface outline of 3.22 km2 of continuous graphitic gneiss, one of the largest surface outlines in the world.

 

The Lola Graphite deposit is 8.7 km long with an avg. width of 370 meters. This Mining Journal projects* (*non 43-101) there is upwards of 150 years of production in the top 20 meters of weathered material alone (calculated using 3.2 sq. km, density of 1.6, 60% of the surface area going through a plant at ~400,000 t/year, yielding 24,000t of concentrate per year), and then there is the rock under that 20 m which is rich too.

 

NOTE: The November 2, 2017 news release "More Strong Results at SRG’s Lola Graphite Project" revealed thicknesses of more than 30 meters in the surface weathered profile in 56% of the boreholes, and averaging over 20 m in the others.

 

Obviously it makes no sense to drill the entire deposit now. The first-pass resource, for the scoping study that SRG is looking to deliver by the end of 2017, will come from its focused drilling of the indicated red ellipse area covering 16% of the deposit, and this Mining Journal believes* this first-pass will give SRG 15 - 20 years (at a removal rate of ~25,000t of concentrate/yr.) of first production.

 
Weathering advantage of top ~20 m: The first 20 meters or so of the deposit are well weathered (lateralized), freeing graphite flakes from the silicate gangue and allowing for an easy grinding with optimal recovery of all large and jumbo flakes. The weathering action from the sun and rain has occurred over millions of years, rotting the rock and causing the mobile elements to escape the rock, leaving behind immobile elements in the soil without organic material. Weathering makes the material amenable to easy low-cost removal as it is very easy to dig (e.g. with a backhoe), explosives are not needed. The weathered profile of the deposit is anywhere from 20 m to 30 m and in some places down to 50 m. The weathered material makes for easier processing too, it requires only gentle crushing to recover all the flakes. The majority of other deposits, around the world, and especially those in North America, are in hard rock structures, making them much harder to mine and much more difficult from a metallurgical standpoint. The Lola Graphite Deposit, within the top 20 m - 30 m, is like a sandbox with the graphite flakes freed from weathering, making them easy to recover.
 

The graphite mineralization extends deep under the top oxide layer within the nonweathered sheared gneiss.

 

Flake size advantage; 89% of graphite flakes are super-jumbo, jumbo, and large (>0.18 mm): The flake distribution found in graphite at the Lola Graphite Deposit is a unique occurrence, very few deposits in the world can compare.  Being dominant large - super-jumbo flakes will allow SRG to market its deposit to all sectors of the economy and cater to the whole range of industries. Most graphite deposits in the world do not have as good a flake distribution as SRG and are pigeon-holed into intensive processing options characterized by low yields, high costs, and low margin, such selling graphite for Li-ion batteries. A large portion of the graphite market involves other aspects of the economy that demand larger flakes, such as steel/foundry/refractory, lubricants, composite parts (used in aerospace) and other specialty uses. A lot of buyers are looking for large flakes and are prepared to pay a premium because they realize these large flakes have a significant advantage.

 

Comparison of Flake Size Distribution

 

Table 1. (above) Comparison of flake size distribution from various selected published sources. This table image of comparisons (above) was actually published by Triton located in Mozambique, they claim flake distribution similar to SRG; ~89% large - super-jumbo flake size -- as you can see there are not many in that pedigree. Not shown in the above table is the purity, SRG is absent impurities, some deposits have issues in removing impurities.

 

Excellent grades and thicknesses: SRG has published several press releases regarding drilling that reveal quality thicknesses and grades drilling, e.g. see latest release September 13, 2017 "SRG Drills 8.9% Cg Over 55 Meters, Including 10.06% Cg Over 48 Meters at Lola – Numerous Drill Intersects Grading Above 10% Graphitic Carbon", which typifies the deposit. The fact that the relative cost of mining and processing are expected to be very low, SRG can mine down to 2% without problems. Obviously SRG will mine the sections with 10% grades first.

 

A total of 36 core drill holes (800 meters) were done by SRG (Sama at that time) on the Lola Graphite deposit in 2014. The drill holes were distributed over a strike length of 5.2 kilometers of the entire 8.7-kilometer-long deposit. The graphite mineralization is well exposed at surface over the entire strike length, with surface sample grades ranging from trace to up to 20% Cg (graphitic carbon). The mineralization is often seen as agglomerates of high graphite concentration that can exceed 50% to 60% visible graphite content.
 

Drilling now underway: A ~4,825-meter (~157 DDH) drilling program was initiated in H1-2017 on the property with an objective to delineate National Instrument 43-101 resources. SRG is still drilling on the property and has used the end of September-2017 as a cut off for holes to be included in the PFS that the Company's independent engineering firm Met-Chem/DRA is expected to have ready by the end of 2017. SRG will continue its drilling after September and use the balance of the results in the expected mid-2018 Feasibility.

 

Cost effective: This Mining Journal envisions SRG in a position to be selling large-flakes, that require nominal simple/low-cost (say ~near-$US300/t) processing (see related press release "SRG Achieves 96% Graphite Purity Via Simple Flotation"), into a range of markets without further processing at say US$1,200/t to US$1,700/t -- very high margins. One of SRG's primary objectives is to establish mineral resources within the weathered portion of the deposit, the first 20 meters or so. The weathered material is easily accessible as it is outcropping at surface, there is no overburden to remove, and mining will not require blasting. SRG plans to process the material on site using typical flotation, thereby producing no harmful waste.

 

Flotation Testing – December 2016 (SRG's Fourth Test)
 

Head Grade: 15.6%

Grinding

Typical Flotation

Acid Wash

Flake Size

mm

%

% Cg

% Cg

+28 Mesh (Super Jumbo)

>0.61

8.0

96.6

99.7

+35 Mesh (Super Jumbo)

>0.50

21.0

95.9

+48 Mesh (Jumbo)

>0.31

28.0

93.4

+80 Mesh (Large)

>0.18

32.0

89.3

99.1

-80 Mesh

<0.18

11.0

83.2

Not tested

 

Table 2. (above) Summary of metallurgical tests performed at ActLab Laboratory in Canada for the oxide material (saprolite; 0-20 meters from surface). Analysis performed on samples from SRG’s Lola Graphite deposit, including geochemical, mineralogical and metallurgical testing, yielded excellent results Tests returned purities of 99.7% and 99.1% graphitic carbon (“Cg“) for +48 mesh (>0.31 millimeters (“mm”) and the -48+80 mesh (between 0.18 mm and 0.31 mm), respectively using a light caustic acid wash (10% concentration). The majority of the concentrate, 89%, is made up of flake sizes greater than 0.18 millimeters. Super-jumbo flakes (>0.50 mm) account for 29% of the concentrate with purities of 96.6% and 95.9% Cg obtained using the basic flotation process.

   

Favorable metallurgy - free from impurities: Preliminary metallurgical tests on the top 20 m of oxide material returned excellent results. The graphite concentrate appears to be exempt of contaminants (Cu, Mo, V, etc) that are often seen in problematic concentrations in graphite concentrates from numerous other graphite deposits around the world and particularly in southern Africa. Mineralogical studies show that all the sulphide minerals have been naturally leached from the oxide facies, resulting in a chemically purer concentrate. For the same reason, the tailings are also expected to be non-acid generating.

 

The absence of impurities at the Lola Graphite Deposit can be traced to the origin on the carbon. Unlike most other deposits which were created from organics matter (with impurities) deposited, the Lola Deposit is at least 3.6B+ years old and has no organic composition to it as a carbon that has come from the earths mantel (deep inside the earth).

 

Full copy of the Mining Journal Review may be viewed at http://miningmarketwatch.net/srg.htm online.

 

This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URL(s).

 

 

SOURCE: Sector Newswire editorial

editorial@SectorNewswire.com

 

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