MEASURED and INDICATED RESOURCES:
10.95 Mt Grading 7.8% Cg at 5% Cg Cut-Off Grade
Graphite One Inc. (GPH: TSX-V; GPHOF: OTCQB) (“Graphite
One” or the “Company”) is pleased to announce the
completion of an updated mineral resource estimate for its Graphite
Creek Project of 1.69 million tonnes (“Mt”) Measured, grading 8.0%
graphitic carbon (“Cg”); 9.26 Mt Indicated, grading 7.7% Cg; and,
91.89 Mt Inferred, with 8.0% Cg, all using a 5% Cg cut-off
grade. The results from the drill program completed during
the 2018 field program moved from Indicated to Measured Resource
status a portion of the previously released resource estimate set
forth in the NI 43-101 Preliminary Economic Analysis on the
Graphite One Project dated June 30, 2017 and filed July 12, 2017
(“PEA”).
Table 1: Resource Estimate Comparison: March 2019 Update
to
PEAhttp://www.globenewswire.com/NewsRoom/AttachmentNg/51ccf42d-bdeb-4cf9-a960-7cbe573564f3
“This increase in resources demonstrates the
potential for a robust, high-grade US Graphite project,” said
Anthony Huston, Graphite One President and CEO. “Having these
results in hand as we commence our Pre-Feasibility work will help
us refine our mine design and knowledge of recovery, size
distribution and the unique qualities of our graphite
mineralization as highlighted in the PEA.”
The U.S. Government has placed graphite on its
Critical Minerals List of materials critical to “the national
economy and national security of the United States”.1
There is currently no U.S. graphite production.
“Graphite Creek continues to show potential to
be a significant domestic source of critical materials for electric
vehicle batteries, power storage and various other critical and
strategic end uses,” Mr. Huston added. “With the rapid rise
in graphite demand associated with renewable energy applications,
and the proliferation of EV battery and energy storage
manufacturing, we believe Graphite One could be an important part
of this new energy supply chain.”
The Graphite Creek Project is a large-flake
graphite deposit located in the Kigluaik Mountains on the Seward
Peninsula approximately 60 km north of the City of Nome,
Alaska.
____________1 Page J5; Schulz, K.J.,
DeYoung, J.H., Jr., Seal, R.R., II, and Bradley, D.C., eds., 2017,
Critical mineral resources of the United States—Economic and
environmental geology and prospects for future supply: U.S.
Geological Survey Professional Paper 1802, 797 p.,
https://pubs.er.usgs.gov/publication/pp1802.
Highlights of the Updated Mineral Resource Estimate (5%
Cut-off Grade):
The following are the highlights of the updated resource
estimate as compared to the estimate reported in the PEA.
- Infill drilling results from 2018
and a more detailed block model have elevated a portion of the
resource to Measured Resources, totalling 1.69 Mt at 8.0% Cg and
0.14 Mt of contained graphite.
- Total Measured and Indicated
Resources are 10.95 Mt at 7.8% Cg with 0.85 Mt of contained
graphite. This represents a 6% increase in tonnage, an 8%
improvement in grade and a 14% increase in contained graphite when
compared to the PEA’s Indicated Resource results.
- Inferred Resources totalled 91.89
Mt at 8.0% Cg with 7.3 Mt of contained graphite. This
represents an increase in tonnage, grade and contained graphite
when compared to the PEA’s Inferred Resources and supports the
potential of a long-term mine life described by the PEA.
- High-grade graphite mineralization
is present at the surface and has been extended to depths of over
200 m by drilling.
- The deposit remains open along
strike in both the east and west directions, as well as down
dip.
- The updated resource estimate
provides direction for continued drilling which is expected to form
the basis for a pre-feasibility study, the next phase for the
Project.
Updated Mineral Resource Estimate for the Graphite Creek
Project
The updated mineral resource estimate for the
Graphite Creek Project is summarized in Table 2 and compared to the
previous mineral resource estimate reported in the PEA.
The PEA presented a cut-off grade of 6.0% Cg “as
it would produce mill feed grading 7% percent Cg. This has
been determined to be the minimum grade required to support
economically viable graphite production in western Alaska.”2
With this guidance, a cut-off grade of 5.0% Cg for the updated
resource estimate was selected as it resulted in Cg grades in
excess of 7% in all resource categories. The selected cut-off
grades in each case are highlighted in Table 2.
____________2 Page 14-7; NI 43-101 Preliminary Economic Analysis
on the Graphite One Project; dated June 30, 2017 and filed July 12,
2017; Prepared by TRU Group
Table 2: Comparison of Estimated Resources - March 2019
Resource Update to PEA Dated June 30,
2017http://www.globenewswire.com/NewsRoom/AttachmentNg/976ae4f2-f811-499e-b7a8-8a676d64afda
Resource Estimate Details
The Measured and Indicated Resource is
constrained within a drilled area of approximately 730 m along the
northeast striking trend of the graphitic schist, 185 m across the
strike to the southeast and 200m below surface. Resource
estimation utilized 56 drill holes (totaling 8,387.54m) that were
drilled by Graphite One in 2012, 2013, 2014, and 2018. The
2018 drill program drilled 801m, successfully tightening up the
vertical and lateral drill spacing along 200 m of strike length
within the core of the Graphite Creek deposit to bring part of the
Indicated Resources to Measure Resources. The deposit remains
open along strike to both the east and west, and down dip.
The graphite deposits occur within distinct
geological layers that comprise high-grade massive to semi-massive
segregated, and disseminated, large-flake graphite in
sillimanite-garnet-biotite-quartz schist and biotite-quartz schist
(±garnet) host rocks. The highest in-situ graphite tonnage
occurs in surface/near-surface mineralized lodes comprised of
sillimanite-garnet-biotite-quartz schist.
Of the 7,893 assays in the Graphite One
database, 3,429 assays were situated within the updated mineralized
lodes. Upon completion of the compositing process (at two
metre intervals), a total of 1,700 composites were used in the
estimation process. Grade was estimated into 2 m (X
dimension) x 2 m (Y) x 2 m (Z) blocks, rotated roughly parallel to
the strike of mineralization. Small block sizes were used to
more accurately follow the shape of mineralization lodes and be
more similar to future mining methods. Variography was used
to help aid the search ellipsoid ranges used in the
estimation. After a first pass box search of 1 m x 1 m x 1 m,
a multi-pass approach was used with increasing search ellipsoid
ranges. Incremental search ellipsoid range was from 45 m x 22
m x 8 m to 1,500 m x 500 m x 500 m with the orientation tailored to
each lode. Estimation was completed using the inverse
distance squared interpolation process. Density values were
composited at 2-meter intervals for a total of 3,777 density
values. Density was estimated for each individual block
throughout the block model regardless of mineralized lode using
similar search ranges as graphite.
The mineral resource estimate was prepared by
Chris Valorose, M.Sc., MAusIMM of Valorose Consulting, Inc.
Mr. William Ellis, P. Geo, with Alaska Earth
Sciences, Inc. provided oversite to the 2018 drilling and sampling
program. Mr. Ellis is a “Qualified Person” under NI 43-101
and has reviewed and approved the technical content of this news
release.
A technical report describing the 2018 drill
program and Graphite Creek resource updated estimate will be filed
on the Company’s website and on SEDAR within 45 days.
About Graphite One’s QA/QC
Program
Graphite One maintains a rigorous quality
assurance/quality control (“QA/QC”) program with respect to the
preparation, shipping, analysis and checking of all samples and
data from the properties. Quality control for drill programs
at the Company's project covers the complete chain of custody of
samples, including verification of drill hole locations (collar
surveys and down-hole directional surveys), core handling
procedures (logging, sampling, sample shipping) and
analytical-related work, including duplicate sampling, "check
analyses" at other laboratories and the insertion of standard and
blank materials. The QA/QC program also includes data
verification procedures.
Sample preparation and primary analysis for the
Graphite Creek project is done by Activation Laboratories Ltd (“Act
Labs”). Act Labs uses standard quality assurance and control
policies in all aspects of laboratory operations. All samples
are assayed for Cg. The technique used for determining Cg is
by LECO whereby the pulp is either digested with hydrochloric and
perchloric acids or subjected to a multistage furnace treatment to
remove all forms of carbon with the exception of Cg.
As part of the comprehensive QA/QC program, one
standard or blank was inserted into the assay stream for every 10
core samples submitted. Blanks were inserted directly after
highly mineralized samples to test for contamination during the
preparation. Three separate commercially available graphite
standard materials were utilized in 2018. These standards are
an additional check on the internal standards utilized by Act
Labs.
About Graphite One Inc.
GRAPHITE ONE INC. (GPH: TSX-V; GPHOF: OTCQB)
continues to develop its Graphite One Project (the “Project”),
whereby the Company could potentially become an American producer
of high grade Coated Spherical Graphite (“CSG”) that is integrated
with a domestic graphite resource. The Project is proposed as
a vertically integrated enterprise to mine, process and manufacture
high grade CSG primarily for the lithium-ion electric vehicle
battery market. As set forth in the Company’s Preliminary
Economic Assessment, potential graphite mineralization mined from
the Company’s Graphite Creek Property, is expected to be processed
into concentrate at a graphite processing plant. The proposed
processing plant would be located on the Graphite Creek Property
situated on the Seward Peninsula about 60 kilometers north of Nome,
Alaska. CSG and other value-added graphite products, would
likely be manufactured from the concentrate at the Company’s
proposed graphite product manufacturing facility, the location of
which is the subject of further study and analysis. The
Company intends to make a production decision on the Project once a
feasibility study is completed.
ON BEHALF OF THE BOARD OF
DIRECTORS
"Anthony Huston” (signed)
For more information on Graphite One Inc. please
visit the Company’s website, www.GraphiteOneInc.com or
contact:
Anthony Huston CEO,
President & Director Tel: (604) 697-2862Email:
AHuston@GraphiteOneInc.com |
Investor Relations
Contact 1-604-684-6730GPH@kincommunications.com |
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 adequacy or
accuracy of this release.
This release includes certain statements that
may be deemed to be forward-looking statements. All statements in
this release, other than statements of historical facts, are
forward-looking statements.
Generally, forward-looking information can be
identified by the use of forward-looking terminology such as
“proposes”, “expects”, or “is expected”, “scheduled”, “estimates”,
“projects”, “intends”, “assumes”, “believes”, “indicates” or
variations of such words and phrases that state that certain
actions, events or results “may”, “could”, “would”, “might” or
“will be taken”, “occur” or “be achieved”.
This release includes certain statements that
may be deemed to be forward-looking statements. All
statements in this release, other than statements of historical
facts that address timing of receipt of regulatory approvals,
exploration drilling, exploitation activities and events or
developments that the Company expects, are forward-looking
statements. Forward-looking information in this press release
includes statements about inferred resource estimates for the
Graphite Creek Project, the potential existence and size of
mineralization within the Graphite Creek Project; estimated timing
and amount of future expenditures, recommendations for future work
on the Graphite Creek Project, geological interpretations and
statements about Graphite One’s strategy, future operations and
prospects. Information concerning inferred mineral resource
estimates also may be deemed to be forward-looking information in
that it reflects a prediction of the mineralization that would be
encountered if a mineral deposit were developed and mined.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results or developments may differ materially from those in the
forward-looking statements.
Factors that could cause actual results to
differ materially from those in forward-looking statements include
market prices, exploitation and exploration successes, continuity
of mineralization, uncertainties related to the ability to obtain
necessary permits, licenses and title and delays due to third party
opposition, changes in government policies regarding mining and
natural resource exploration and exploitation, and continued
availability of capital and financing, and general economic, market
or business conditions.
Readers are cautioned not to place undue
reliance on this forward-looking information, which is given as of
the date that is expressed in this news release, and the Company
undertakes no obligation to update publicly or revise any
forward-looking information, except as required by applicable
securities laws. For more information on the Company, investors
should review the Company's continuous disclosure filings that are
available at www.sedar.com.
The mineral resource estimates reported in this
press release were prepared in accordance with National Instrument
43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”),
as required by Canadian securities regulatory authorities. For
United States reporting purposes, the United States Securities and
Exchange Commission (“SEC”) applies different standards in the
classification of mineralization. In particular, while the terms
“measured,” “indicated” and “inferred” mineral resources are
required pursuant to NI 43-101, the SEC does not recognize such
terms. Canadian standards differ significantly from the
requirements of the SEC. Investors are cautioned not to
assume that any part or all of the mineral deposits in these
categories constitute or will ever be converted into
reserves. In addition, “inferred” mineral resources have a
great amount of uncertainty as to their existence and great
uncertainty as to their economic and legal feasibility. It
cannot be assumed that all or any part of an inferred mineral
resource will ever be upgraded to a higher category.
United States investors are advised that
current mineral resources are not current reserves and do not have
demonstrated economic viability. All figures are rounded to
reflect the relative accuracy of the estimate and in keeping with
“best practise principles”.
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