Northern Graphite Improves Yield of Large Flake Graphite
August 15 2017 - 8:50AM
Northern Graphite Corporation (TSXV:NGC) (OTCQX:NGPHF) (“Northern”
or the “Company”) is pleased to announce the results of additional
metallurgical test work carried out on ore from the Bissett Creek
deposit by BGRIMM, a Chinese state owned metallurgical research and
development company. BGRIMM confirmed the high recoveries and
high purities used in the Feasibility Study (“FS”) and successfully
increased the percentage of high value, +50 mesh XL flake in the
final concentrate from 48 to 61 per cent.
Gregory Bowes, CEO commented that: “We believe
Bissett Creek has the best flake size distribution of any graphite
project which will result in concentrate prices that are more than
60 per cent higher than for the “average” project, and we will not
have the fines problem that characterizes almost every graphite
deposit.” He added that “XL flake markets are growing rapidly
while Chinese production of XL flake is declining which creates an
excellent opportunity for the Bissett Creek Project.”
Estimated Revenue per tonne of Concentrate
(US$) |
|
|
Flake Size Distribution |
Flake Size |
Current Price1 |
Northern2 |
Average Project1 |
+32 mesh XXL |
$2,200 |
30% |
- |
+50 mesh XL |
$1,600 |
43% |
20% |
+80 mesh Large |
$1,000 |
20% |
25% |
+100 mesh Medium |
$900 |
7% |
10% |
+150 mesh Small |
$800 |
0% |
20% |
-150 mesh fines3 |
$500 |
0% |
25% |
|
|
100% |
100% |
|
|
|
Estimated revenue/tonne of
concentrate (US$) |
$1,600 |
$950 |
|
1 Company estimates from market sources and
public information. |
2 Graphite concentrates are priced and sold as
80% meeting the size requirement. Smaller sizes can beblended
in to make up the balance as long as the required purity level is
maintained. |
3 Limited marketability. |
China produces 70 to 80 per cent of the world’s
graphite and has substantial expertise in graphite mining and
processing. BGRIMM was engaged to complete a full suite of
metallurgical testing to confirm the assumptions and estimates used
in the FS and to determine if they could be improved and costs
reduced. Testing included chemical analysis, X-ray diffraction,
thin section analysis, process mineralogy, progressive grinding
tests, reagent regime tests for rougher flotation, flotation times,
first and second stage regrinding tests for cleaner flotation,
open-circuit tests, locked-cycle testing and recycled water tests.
BGRIMM achieved a purity level over 95 per cent and a carbon
recovery over 96 per cent in locked cycle tests which are
consistent with the FS. Most importantly, the concentrate was 25
per cent +32 mesh XXL flake and 36 per cent +50 mesh XL flake for a
combined total of 61 per cent (compared to 48 per cent in the
FS). An additional 17 per cent was +80 mesh large flake and
only 14 per cent was less than 100 mesh, small flake.
Work carried out by BGRIMM and the Company’s
Brazilian metallurgical consultant have also identified a number of
opportunities to potentially reduce capital and operating
costs. These modifications are currently being evaluated at
SGS Lakefield.
About BGRIMM BGRIMM is a
premier Chinese institute in the field of mining and metallurgical
technology and operates directly under the Chinese Government
(SASAC). It has over 4,000 employees, is headquartered in
Beijing and has operations in a number of provinces including
Hebei, Jiangsu, Liaoning and Hunan as well as Santiago,
Chile. BGRIMM has been conducting research on graphite since
the 1970s and its services include mining, mineral processing
(process development, flotation and reagent optimization and
equipment design), and purification and downstream
processing. It has completed a number of key national
projects in recent years.
About Northern Graphite
Northern Graphite is a Canadian company that has a 100% interest in
the Bissett Creek graphite deposit located in southern Canada and
relatively close to all required infrastructure. Bissett
Creek is an advanced stage project that has a full Feasibility
Study and its major environmental permit. Subject to the
completion of operational and species at risk permitting, which are
well advanced, Northern could commence construction in early 2018
subject to obtaining the required financing. Northern
believes that Bissett Creek has the best flake size distribution,
highest margin and lowest marketing risk of any new graphite
project, and has the added advantages of a low capital cost and
realistic production target relative to the size of the market.
Gregory Bowes, B.Sc. MBA, P. Geo., a Qualified
Person as defined under NI 43-101, has reviewed and is responsible
for the technical information in this news release.
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
Companies do not intend, and do 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.
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policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Contact: Gregory Bowes (613) 241-9959
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