Northern Graphite Announces Successful Drill Program at Bissett Creek
07 March 2013 - 11:45PM
Marketwired Canada
Northern Graphite Corporation (TSX VENTURE:NGC) is pleased to announce very
positive results from a 61 hole, 3,425 meter drilling program on the Bissett
Creek graphite project. The drill program was designed to infill a significant
portion of inferred resources with the objective of upgrading them to the
measured and indicated categories. In addition, the potential for higher grade
zones to extend outside of the current resource model was tested. All 61 holes
returned widths and grades as good as or better than those in the recently
completed bankable Feasibility Study ("FS").
A new resource estimate based on the drill results is expected to be completed
by the end of March. The existing mine plan will then be revised and FS
economics updated and released within a couple weeks thereafter. The current
mine plan includes 1.5 million tonnes of inferred resources that are treated as
waste with zero grade and it excludes a substantial amount of higher grade
inferred resources. It is anticipated that the revised mine plan will show an
increase in grade, a reduction in costs and a much longer mine life. The
resource update and revised FS will be completed by AGP Mining Consultants.
Gregory Bowes, CEO, commented that: "the Bissett Creek project has low
engineering, technical and political risk, reasonable capital costs and
competitive operating costs. It is expected to produce the highest quality
concentrates in the industry." He added that "Once the FS is updated, we
anticipate finalizing discussions with strategic partners and putting the mine
financing package together."
The current resource estimate consists of 25,903,000 tonnes of indicated
resources and 55,038,000 tonnes of inferred resources at a 1% cut-off grade
(mineral resources are not mineral reserves and do not have demonstrated
economic viability). The FS estimated a probable reserve of 23 million tonnes at
a grade of 1.89% Cg based on indicated resources only. Thirteen infill holes
were drilled within the FS pit and returned significant intersections with
grades higher than the average resource grade. Almost all the holes drilled
outside the FS pit also intersected higher grades (see table and map). Many
holes also contain lower, but still ore grade intersections, higher up in the
hole. This material will likely be stockpiled and processed later in the mine
life.
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Hole From (M) To (M) Width (M) Cg%
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MFT-12-001 57 90 33 2.94
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MFT-12-002 42 89 47 2.29
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MFT-12-003 69 92 23 2.88
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MFT-12-005 45 103 58 2.75
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MFT-12-006 33 60 27 2.55
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MFT-12-007 27 42 15 2.52
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MFT-12-008 44 63 19 2.85
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BC-12-111 30 48 18 2.14
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BC-12-201 23.5 54 30.5 2.66
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BC-12-202 21 54 33 2.66
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BC-12-203 36 57 21 2.66
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BC-12-204 30 46 16 2.66
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BC-12-205 24 51 27 2.53
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BC-12-206 27 54 27 2.70
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BC-12-207 18 51 33 2.31
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BC-12-208 58 77 19 2.56
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BC-12-209 27 46 19 2.33
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BC-12-210 18 41 23 2.25
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BC-12-211 24 41 17 2.65
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BC-12-212 20 36 16 2.68
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BC-12-213 21 37 16 2.97
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BC-12-214 12 33 21 2.41
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BC-12-217 36 53 17 2.02
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BC-12-18 19 45 26 2.97
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BC-12-219 9 33 24 2.68
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BC-12-220A 18 39 21 2.41
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BC-12-221 15 42 27 2.65
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BC-12-222 27 45 18 2.57
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BC-12-223 9 42 33 2.45
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BC-12-224 12 42 30 2.32
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AGP-12-01 36 55 19 2.82
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AGP-12-02 27 54 27 2.66
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AGP-12-03 40 70 26 2.38
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A complete list of drill holes is available on the Northern Graphite website at
www.northerngraphite.com.
All samples from the drill program were collected and supervised by Mehmet
Taner, P.Geo., PhD and a QP, and delivered to SGS Mineral Services (Toronto).
SGS is an ISO/IEC 17025 accredited analytical laboratory. The samples were ashed
at 500 degrees C to remove organic carbon. Carbonate carbon was estimated on one
aliquot of the ashed sample using dilute perchloric acid to release CO2 which
was then measured by a Coulometric analyzer. A second aliquot was used to
estimate total carbon content. The second aliquot was combusted at 950 degrees C
and the carbon was converted to CO2 and measured by the coulometer. Graphitic
carbon was calculated as follows: percentage of graphitic carbon ("Cg") =
percentage of total carbon in ashed sample minus percentage of carbon as
carbonate in ashed sample. For QA/QC purposes, the Company inserted a total of
40 standards (one every 35th to 40th sample), intermittent with 19 blank
samples. A field duplicate sample was generally taken in every hole (1/4 of the
core) within well mineralized sections. A total of 29 duplicate samples were
taken.
Don Baxter, P.Eng, President of the Company and a "Qualified Person" under
43-101, is responsible for and has reviewed and approved the technical content
of this press release.
The Graphite Market
China currently produces 70% of the world's graphite and an export tax and a
licensing system have been instituted to restrict exports and encourage value
added processing in China. Recently, the Chinese government banned any new
plants, and imposed strict environmental regulations on existing plants, in the
historic graphite mining and processing area of Qingdao. This follows calls for
REE type protection and quotas from Chinese producers, the formation of a state
owned amorphous graphite monopoly that is consolidating 210 amorphous graphite
mines down to 20 and reducing production capacity from 600,000 to 510,000 tonnes
per year, and the implementation of new rules and standards which will make
graphite mines much more difficult to build and operate. No new graphite mines
were built during the past economic cycle and the supply situation will become
more acute as economic growth recovers. Both the European Union and the United
States have declared graphite a supply critical mineral.
Northern Graphite Corporation
Northern Graphite is a Canadian company that has a 100% interest in the Bissett
Creek graphite deposit located in eastern Ontario and is well positioned to
benefit from the favourable supply/demand outlook for graphite. Northern is the
only graphite company to have completed a bankable Feasibility Study and has a
large flake, high purity, scalable deposit that is located close to
infrastructure and has reasonable capital costs and very competitive operating
costs. Additional information is available under the Company's profile on SEDAR
at www.sedar.com and on the Company's website at www.northerngraphite.com.
This press release contains forward-looking statements, which can be identified
by the use of statements that include words such as "could", "potential",
"believe", "expect", "anticipate", "intend", "plan", "likely", "will" or other
similar words or phrases. These statements are only current predictions and are
subject to known and unknown risks, uncertainties and other factors that may
cause our or our industry's actual results, levels of activity, performance or
achievements to be materially different from those anticipated by the
forward-looking statements. The Company does not intend, and does not assume any
obligation, to update forward-looking statements, whether as a result of new
information, future events or otherwise, unless otherwise required by applicable
securities laws. Readers should not place undue reliance on forward-looking
statements.
To view the figure associated with this release, please visit the following
link: http://media3.marketwire.com/docs/NGCfig1.pdf.
FOR FURTHER INFORMATION PLEASE CONTACT:
Northern Graphite Corporation
Gregory Bowes
CEO
(613) 241-9959
Northern Graphite Corporation
Don Baxter P.Eng
President
(705) 789-9706
www.northerngraphite.com
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