Focus Graphite Inc. (TSX-V:FMS)(OTCQX:FCSMF)(FSE:FKC) (“Focus” or
the “Company”) and partner SOQUEM Inc. ("SOQUEM") are pleased to
announce that they have engaged Met-Chem of Montréal, a division of
DRA Americas Inc (“Met-Chem/DRA”), to undertake a Preliminary
Economic Assessment (PEA) of their Kwyjibo Polymetallic-Rare
Earth Elements (REE)
– Copper-Iron-Phosphate
project (“Kwyjibo” or the “Project”), located in the Côte-Nord
administrative district of northeastern Québec.
Met-Chem/DRA is a globally recognized expert in
mine and infrastructure design, including construction and mine
operations, resource mapping, metallurgy, cost assessment, process
design and administration. They have direct experience in the REE
sector having prepared: pre-feasibility studies (PFS) on the
Zandkopsdrift and Steenkampskraal REE projects in South Africa and
on the Browns Range Project in Australia.
On behalf of the Joint Venture partners, Focus
Graphite President and Chief Executive Officer Gary Economo said:
“We are pleased to have Met-Chem/DRA leading the PEA on Kwyjibo.
Met-Chem/DRA is a highly skilled and reputable engineering firm
with individual team members that have a wealth of professional
experience on a variety of projects throughout the world, including
REE projects.”
Mr. Economo said the decision to undertake the
PEA study coincided with a number of encouraging market factors,
chief among them, a significant rise in market prices during the
first half of 2017 for neodymium and praseodymium.
“And, with Germany, France and the United
Kingdom announcing plans to end the production of cars equipped
with combustion engines starting in 2030, conditions appear to be
favourable for a resurgence in investment momentum, especially for
non-Chinese REE explorers,” Mr. Economo said.
“The recent resurgence in rare earth elements
prices also reflects growing demand as a result of the Paris
Agreement on climate action globally, but more in particular
China’s REE production cuts as it rationalizes its REE mining
industry – in support of its policy to electrify China’s
transportation and other industries,” said Mr. Economo.
According to the Nikkei Asian Review, China,
which produces some 85% of the world’s supply of rare earths, is
looking to curtail supply by enforcing environmental rules and
targeting illegal REE mining operations.
Rare earth materials are critical for the
construction of solar photovoltaics, wind electricity generators
and energy storage technologies, among other industrial
applications.
The Roskill Consulting Group reported in an
August 3, 2017 rare earths market update, “the increase in certain
rare earth element (REE) prices in H1 2017, particularly for
neodymium (Nd) and praseodymium (Pr) products, has brought renewed
interest to the rare earths industry after prices stagnated in
2016. China FOB Nd oxide and Pr oxide prices increased 20% to
US$48.4/kg REO and 21% to US$61.5/kg REO respectively between
January and July 2017, whilst Chinese domestic prices for the same
products increased by 23% and 24% during the same period.” (This
update is available on the Roskill website at
https://roskill.com/news/rare-earths/)
And, the World Bank, in its June, 2017 Study
entitled: “The Growing Role of Minerals and Metals for a Low Carbon
Future” indicates the universal focus towards slowing global
warming creates opportunities for nations to explore and exploit
potential REE resources.
“It is striking that aside from China, Brazil,
India, and Malaysia there are no recorded production, reserve, or
resource data for rare-earth metals available from any developing
country regions. Although these critical metals can be found in
these areas, no concerted efforts have been undertaken to
accurately map their existence,” the report said.
Mr. Economo said the PEA Study undertaking with
Met-Chem/DRA, when completed, and, if positive, could lead to
further investigation of the Kwyjibo Project’s feasibility as a
potentially new North American rare earths source.
Preliminary Economic Assessment of the Kwyjibo
project
The PEA will be based on promising
hydrometallurgical test results from lab-scale work being conducted
at Hazen Research Inc. of Golden, Colorado. On November 21, 2016,
Focus and SOQUEM announced results from the 2014-2015 chemical
leaching test work program conducted on two composite drill core
samples from the Magnetite and Lower Breccia zones of the Josette
horizon. The tests and subsequent purification steps are supervised
by Mr. Eric Larochelle, P. Eng., a metallurgical consultant part of
Met-Chem/DRA’s team of experts.
Highlights of that test work included:
- A distinct and relatively simple metallurgical flowsheet when
compared with those of peer rare earth element projects
- A very high leach extraction rate of approximately 90% from
rare earth concentrate for all rare earth elements for the massive
Magnetite Mineralization Type (“MM1”)
Met-Chem/DRA commenced work on the PEA on August
1, with a view to completion of its report by late 2017 or early
2018.
Qualified Persons
Mr. Daniel M. Gagnon, P.Eng, FCIM, Senior
Vice-President Mining, Geology, Met-Chem/DRA, a Qualified Person
under National Instrument 43-101 - Standards of Disclosure for
Mineral Projects has reviewed and approved the technical content of
this news release.
Mr. Eric Larochelle, P.Eng., President of SMH
Process Innovation, an independent consultant to Met-Chem/DRA
responsible for the hydrometallurgical program and a Qualified
Person under National Instrument 43-101 - Standards of Disclosure
for Mineral Projects has read and approved the hydrometallurgical
technical information contained in this news release.
Mr. Marc-André Bernier, M.Sc, P.Geo (Québec and
Ontario), a Director of the Company and a Qualified Person under
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects, has reviewed and approved the non-technical content of
this news release.
About the Kwyjibo Project
The Kwyjibo polymetallic project, totalling 118
claims and covering 6,278 ha, is located 125 km northeast of the
port city of Sept-Îles, in the Côte-Nord administrative district of
Québec. The project is also located 25 km east of the Québec North
Shore and Labrador railway line and is accessible by air from
Sept-Îles.
Kwyjibo is located in the Grenville Geological
Province of north-eastern Québec, and hosts Meso-proterozoic
poly-metallic iron (Fe), copper (Cu), rare-earth elements (REE),
gold (Au)) mineralization which is considered to be one of the best
iron oxide copper-gold (IOCG) exploration targets in Québec. The
mineralization has already been traced over a distance of at least
4 km. The Kwijibo property is subject to a NSR royalty of 1.5%
payable to Compagnie Minière IOC Inc.
About SOQUEM Inc.
SOQUEM, a subsidiary of Investissement Québec,
is a leading player in mineral exploration in Québec. Its mission
is to explore, discover and develop mining properties in Québec.
SOQUEM has participated in more than 350 exploration projects and
contributed to major discoveries of gold, diamonds, lithium and
other minerals.
About Focus Graphite
Focus Graphite Inc. is an advanced exploration
company with an objective of producing graphite concentrate at its
wholly-owned Lac Knife flake graphite deposit located 27 km south
of Fermont, Québec. In a second stage, to meet Quebec stakeholder
interests of transformation within the province and to add
shareholder value, Focus is evaluating the feasibility of producing
value added graphite products including battery-grade spherical
graphite.
Focus Graphite is a technology-oriented graphite
development company with a vision for building long-term,
sustainable shareholder value. Focus also holds a significant
equity position in graphene applications developer Grafoid Inc.
For more information about Focus Graphite,
please visit www.focusgraphite.com.
Forward Looking Statement
This News Release contains "forward-looking
information" within the meaning of Canadian securities legislation.
All information contained herein that is not clearly historical in
nature may constitute forward-looking information. Generally, such
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might"
or "will be taken", "occur" or "be achieved". Forward-looking
information is subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to: (i)
volatile stock price; (ii) the general global markets and economic
conditions; (iii) the possibility of write-downs and impairments;
(iv) the risk associated with exploration, development and
operations of mineral deposits; (v) the risk associated with
establishing title to mineral properties and assets; (vi) the risks
associated with entering into joint ventures; (vii) fluctuations in
commodity prices; (viii) the risks associated with uninsurable
risks arising during the course of exploration, development and
production; (ix) competition faced by the Company in securing
experienced personnel and financing; (x) access to adequate
infrastructure to support mining, processing, development and
exploration activities; (xi) the risks associated with changes in
the mining regulatory regime governing the Company; (xii) the risks
associated with the various environmental regulations the Company
is subject to; (xiii) risks related to regulatory and permitting
delays; (xiv) risks related to potential conflicts of interest;
(xv) the reliance on key personnel; (xvi) liquidity risks; and
(xvii) the risk of potential dilution through the issue of common
shares. Forward-looking information is based on assumptions
management believes to be reasonable at the time such statements
are made, including but not limited to, continued exploration
activities, no material adverse change in metal prices, exploration
and development plans proceeding in accordance with plans and such
plans achieving their stated expected outcomes, receipt of required
regulatory approvals, and such other assumptions and factors as set
out herein. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in the forward-looking information,
there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that
such forward-looking information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such forward-looking information. Such
forward-looking information has been provided for the purpose of
assisting investors in understanding the Company's business,
operations and exploration plans and may not be appropriate for
other purposes. Accordingly, readers should not place undue
reliance on forward-looking information. Forward-looking
information is made as of the date of this News Release, and the
Company does not undertake to update such forward-looking
information except in accordance with applicable securities
laws.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the accuracy of this release.
Contact
Focus Graphite Inc.Mr. Gary EconomoChief
Executive Officer+1 613-241-4040geconomo@focusgraphite.com
www.focusgraphite.com
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