MONTREAL,
July 3, 2013 /CNW/ - Mason
Graphite Inc. ("Mason Graphite" or the "Company") (TSX.V: LLG)
announces that, following the completion of a $5 million private placement financing (see press
release dated June 28, 2013), it is
initiating its 2013 exploration program at its Lac Guéret graphite
property. The exploration campaign will include approximately
15,000 metres of drilling, designed to test for further continuity
of the mineralization of the GC and GR Zones, which in the
aggregate cover 100 hectares, as well as surface work and drilling
on other graphite mineralized areas located on the 11,630 hectare
property.
In addition to the exploration campaign, the
Company intends to conduct metallurgical test work on sections of
the 26,500 metres of core drilled last year in order to further its
understanding of all the mineralized areas of the deposit, and to
optimize the positive results published by the Company in
February 2013, which were based on
testing conducted on approximately 1,400 kg of graphite-bearing
mineralization collected at the surface of the current mineral
resource. Such results include graphite recoveries in excess of
96%, concentrate purity of 96.3% graphite for the +150 mesh (106
µm) cumulative and a particle size distribution of 29% of +80 mesh
(180 µm) cumulative, including 16% of +50 mesh (300 µm).
The Company also intends to complete the
environmental baseline studies that were initiated in June 2012, which represents an important
milestone for the project permitting.
In 2012, the company completed a drilling
program consisting of 163 drill holes (approximately 26,500 meters)
which was successful in delineating mineralization with similar
grades outside of the current mineral resource envelope (see press
releases dated November 21, 2012,
February 28, 2013 and April 3, 2013). An updated mineral resource
estimate incorporating the results from the 145 drill holes
completed in 2012 on the GC Zone is expected to be completed in
September 2013.
The Company also announces that it has granted
an aggregate of 885,000 options to officers, employees and
consultants of the Company. Each option will allow for the purchase
of one common share of Mason Graphite at a price of $0.60 until July 2,
2018. The options will vest in three installments, with one
third vesting upon issuance, one third vesting one year following
issuance, and one third vesting two years following issuance. The
option grant is subject to acceptance by the TSX Venture
Exchange.
Quality Control and Assurance
Nathalie
Guillemette, P. Geo, a consultant to the Company, and Jean
L'Heureux, Eng., Executive Vice-President of Process Development,
both Qualified Persons as defined by National Instrument 43-101
have read and approved the scientific and technical content of this
press release.
About Mason Graphite
Mason Graphite is a Canadian mining company
focused on the exploration and development of its 100% owned Lac
Guéret graphite property, which is located in northeastern Québec
near the main service center of Baie-Comeau. The Lac Guéret property currently
hosts a National Instrument 43-101 compliant Mineral Resource (see
news release issued on July 16,
2012), which considers the exploration of only 17% of one
well defined zone. Excellent potential exists for mineral growth.
The Company has also completed a Preliminary Economic Assessment
study which features 22 years of production at 27.4% Cgr and a
pre-tax internal rate of return of 33.7% (see technical report
issued by the Company on June 6,
2013). The Company's senior management team possesses
significant graphite expertise from their experience at
Timcal/Imerys; including Benoit
Gascon, CPA, CA, who held executive positions for 20 years,
including over 6 years as President and CEO; Jean L'Heureux, Eng.,
Executive Vice-President, Process Development, with over 20 years
of experience; and Luc Veilleux,
CPA, CA, Chief Financial Officer and Executive Vice-President, with
8 years of experience. Timcal, now owned by Imerys, is one of the
largest graphite producers in the world.
Cautionary Statements Regarding Forward
Looking Information
This press 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 resulting issuer in
securing experienced personnel and financing; * 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 resulting issuer; (xii)
the risks associated with the various environmental regulations the
resulting issuer 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; (xvii) the risk of potential dilution through the issue of
common shares; (xviii) the Company does not anticipate declaring
dividends in the near term; (xix) the risk of litigation; and (xx)
risk management.
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 press
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 adequacy or accuracy of this release.
SOURCE Mason Graphite Inc.