VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 17, 2015) - Graphite One Resources Inc. (TSX VENTURE:GPH)(OTCQX:GPHOF) ("Graphite One" or the "Company") is pleased to announce the completion of an updated mineral resource estimate for its Graphite Creek deposit near Nome, Alaska of 17.95 million tonnes ("Mt") indicated, grading 6.3% graphitic carbon ("Cg"), and 154.36 Mt inferred, with 5.7% Cg, using a 3% Cg cut-off grade ("COG"). The 2014 drill program, completed in October 2014, increased the vertical and lateral drill spacing along a 730m strike length of the 4.8 km long Graphite Creek deposit. The drilling results moved a portion of the previously released resource estimate (see News Release of January 20, 2014) from inferred to indicated resource status and will provide the basis for the Graphite Creek Project's initial Preliminary Economic Assessment ("PEA"), expected to be released in Q2 2015. The previous inferred mineral resource estimate released in January 2014 totaled 186.90 Mt of 5.5% Cg at a cut-off grade ("COG") of 3% Cg, and is superseded and replaced by the Updated Mineral Resource estimate announced by this Press Release.
The Graphite Creek Deposit is 29km (18 miles) from a seasonal road and approximately 113km (70 miles) from the port of Nome which could be accessible from the deposit by either land or water.
Highlights of the Updated Mineral Resource Estimate:
- Indicated Mineral Resource of 17.95 Mt at 6.3% Cg and an Inferred Resource of 154.36 Mt of 5.7% Cg, both at 3% COG, makes the Graphite Creek deposit the largest published graphite resource in the United States
- An indicative 14% increase in grade within the area of 2014 infill drilling as shown by the new Indicated Mineral Resource from the previous Inferred Resource grade (5.54% to 6.3% Cg COG)
- The 2014 drilling program further confirmed positive continuity of near surface, higher grade graphite within a simple geological setting, moving 11% of the previous Inferred resource to the Indicated resource category
- 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 Company will utilize this updated mineral resource estimate to prepare an initial Preliminary Economic Assessment for the Graphite Creek Deposit under direction of RPA Inc., Vancouver, B.C.
"Our progress at Graphite Creek is due to a combination of factors: the continuity of the mineralization, a near surface location and simple geology. Taken together these factors have allowed us to grow our resource to an impressive size with limited drilling - just 50 drill holes to date," stated Anthony Huston, CEO of Graphite One. "With this updated Mineral Resource Estimate, we have the basis for developing our initial PEA, and the foundation for an infill drill program in 2015 to bring additional resources into the measured and indicated category. The metallurgical samples we obtain will help us further refine our knowledge of the recovery and size distribution of our unique deposit and position Graphite Creek as a new source for the growing graphite market".
|Graphite Creek Resource Estimate - February 2015
||In Situ Graphite
||This resource estimate recommends using a 3.0% Cg cut-off grade for the base case to be consistent with its conservative approach of resource recovery of 80 to 95% Graphite concentrate with average selling price of USD$1,400/tonne.
||The tonnage and in situ graphite (metric tonnes) have been rounded off to the nearest thousand, and therefore may not tally due to rounding.
Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no guarantee that all or any part of the mineral resource will be converted into a mineral reserve.
The mineral resource estimate was prepared by Steven Nicholls, B.A.Sc., MAIG and Roy Eccles, M.Sc., P.Geol. of APEX Geoscience Ltd. -- both of whom are independent Qualified Persons under National Instrument 43-101 ("NI 43-101") -- using the most current Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Standards on Mineral Resources and Reserves, Definitions and Guidelines.
David Hembree, C.P.Geol., General Manager Operations for the Company and a "Qualified Person" under NI 43-101, is responsible for and has reviewed and approved the technical content of this news release. A technical report describing the 2014 drill program and Graphite Creek Indicated Resource will be filed on the Company's website and on SEDAR within 45 days.
The Graphite Creek 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. Geological interpretation and estimation utilized 48 drill holes (totaling 7,494.35m) that were drilled by Graphite One in 2012, 2013 and 2014. The 2014 drill program successfully tightened up the vertical and lateral drill spacing along a 730 m strike length segment of the Graphite Creek Deposit within its Inferred Mineral Resource area. The 2014 drill spacing and collar orientation provided sufficient drill coverage (drill holes centered at 50 m with at least two drill holes per drill section) to increase the control of the geological model and clearly demonstrate graphite mineralization continuity. As such this 730 m portion of the resource is the focus of this 2015 Indicated and Inferred Graphite Creek Resource estimate. 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. Accordingly, the geological model and estimation is guided by nine distinct mineralized lodes, or statistically derived groupings of elevated graphite mineralization, that are shown to extend laterally for various distances along the strike of the deposit. Of these lodes, the highest in-situ graphite tonnage occurs in surface/near-surface mineralized lodes comprised of sillimanite-garnet-biotite-quartz schist.
Of the 7,204 assays in the Graphite One database, 2,831 assays were situated within the mineralized lodes. Upon completion of the compositing process (at three metre intervals), a total of 839 composites were used in the estimation process. Density values (n=2,830) were estimated for each individual block throughout the block model. Grade was estimated in 25 m (X dimension) x 25 m (Y) x 5 m (Z) parent blocks, which was sub-blocked down to 12.5 m (X) x 12.5 (Y) x 2.5 m (Z) to provide a better representation of lode volumes. Variography was used to help aid the search ellipsoid ranges used in the estimation. An incremental search ellipsoid ranging from 50 m x 25 m x 20 m to 1,500 m x 500 m x 500 m with the orientation tailored to each lode was used for the inverse distance squared interpolation process.
About Graphite One Resources' QA/QC Program
Graphite One Resources Inc. (the "Company") 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 projects 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 at Actlabs. Actlabs uses standard quality assurance and control policies in all aspects of laboratory operations. The programs were developed from guidelines published by the International Standards Organization ("ISO") commonly referred to as ISO\IEC17025 Guidelines. Actlabs uses 5 different masses of EDTA as well as 99.9% pure graphite as internal quality control. These are used at a 10% frequency. Actlabs also uses a 10% sample duplicate frequency.
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 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 blank materials have been used and a suitable consistent material was utilized in 2014. Duplicate samples include 1/4 drill core splits and were submitted as two separate samples with consecutive sample numbers. One duplicate sample was inserted for every 20 samples. Four commercially available graphite standards were utilized in the sample stream with one inserted for each 10 core samples by Graphite One staff. These standards are an additional check on the internal standards utilized by Actlabs who provides analytical services for the core samples.
Drill hole sample rejects are routinely sent to ISO/IEC 17025 accredited SGS Lakefield and/or ACME Analytical Laboratories Ltd. for check analyses.
Quality control is carried out by Graphite One employees under the supervision of the Company's General Manager Operations, David Hembree, C.P.Geol. Mr. Hembree is a qualified person as described by NI 43-101.
About Graphite One Resources Inc.
Graphite One Resources Inc. (TSX VENTURE:GPH)(OTCQX:GPHOF) is exploring with the intent to develop the Graphite Creek Project, USA's largest known large flake graphite deposit. Graphite One remains on schedule to publish its inaugural PEA on the Graphite Creek Project in Q2 2015. The report will incorporate all of the drilling and metallurgical test results completed to its effective date. The purpose of the PEA is to evaluate the potential viability of the project's resources.
ON BEHALF OF THE BOARD OF DIRECTORS
"Anthony Huston" (signed)
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 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 news release includes statements about inferred resource estimate 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, the preparation of a Preliminary Economic Assessment for 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. Information concerning inferred mineral resources 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 news 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. Under Canadian securities laws, issuers must not make any disclosure of results of an economic analysis that includes inferred mineral resources, except in rare cases.
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".