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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.
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 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.
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.
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)
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
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