Graphite One Resources [TSX-V: GPH | OTCQX: GPHOF] (the “Company”) is exploring, with the intent to develop, its Graphite Creek Deposit located on the Seward Peninsula near Nome, Alaska (the “Project”). The Project is currently advancing from the exploration to the evaluation phase.
The Graphite Creek Deposit is America’s highest grade and largest known, large flake graphite deposit. Based on an updated mineral resource estimate as of March 2015 that evaluated 4.8km of drilling on the Deposit’s 18km strike length, Graphite Creek has a NI 43-101 Indicated Resource of 17.95 million tonnes at 6.3% graphitic carbon (“Cg”) with an Inferred Resource of 154.3 million tonnes at 5.7% Cg using a 3% cut-off grade.
The Company has completed three resource definition diamond drill programs since 2012 totaling 7,494.35m of drilling in 48 holes. Two additional core holes were completed in 2014 for use in metallurgical testing and geotechnical studies. The resulting Graphite Creek Indicated Resource is now constrained within a drilled block of approximately 730m along the northeast striking trends of the graphitic schist, 185m across the strike to the southeast and 200m below surface. The deposit remains open along strike to both the east and west, and down dip. The grade of the Indicated Resource block increased 14% with the 2014 infill drilling program compared to the grade of the previously inferred resource (6.30% vs. 5.54%). The 2014 drilling also confirmed continuity of the stacked, near surface, graphite zones and moved 11% of the previous inferred resource to the indicated resource category.
Flotation beneficiation test work, completed in 2014, showed the ability to produce high grade graphite concentrates above 90% Cg content. The highest concentrate grade, 93.6% Cg, was observed for the largest flake size concentrate (+48 mesh, 300 microns) which comprised 18.6% of the concentrate total mass produced. The fine fraction assayed 91.7% Cg. Importantly, the laboratory was able to achieve 99.87% Cg in a test of alkaline roast acid leach purification of the graphite flotation concentrate.
Hazen Laboratories completed additional metallurgical test work in 2015 on five representative drill core composites from the upper two graphite bearing horizons of the Graphite Creek deposit. This work included gravity separation testing of the garnet fraction associated with the higher grade graphite mineralization, evaluation of the graphite recoveries of the lower grade graphite-biotite schist material. Further optimization studies of the flotation flowsheet incorporating the gravity scalp of the heavy fraction were completed, while preserving the large flake properties of the mineralization. The studies showed that a gravity circuit at the start of the flotation would remove up to 18% of the mass while preserving the large flake fraction of the graphite. Additional grinding and optimization work is recommended. The garnet fraction will be evaluated for potential use as an abrasive product.
The Company commissioned TRU Group Inc. (“TRU”) to study the Project’s development options and match its graphite resources to up-market, functionalized end uses. The work also studied the characteristics of the Project’s graphite. TRU’s report, completed in April 2015, described unique characteristics of Graphite Creek graphite and identified the need for additional research and development to more fully understand these characteristics. Important conclusions were reported in the Company’s April 15, 2015 press release. The distinguishing features have been described as Spheroidal, Thin, Aggregate and eXpanded, or STAX. The Company is in the process of registering the trademark, “STAX”, in association with Graphite Creek graphite.
Graphite One has delayed completion of its inaugural Preliminary Economic Assessment (“PEA”) on the Graphite Creek Project to further evaluate the processing and metallurgical parameters of the Graphite Creek mineralization and the economics of the potential products the Company might produce. The additional metallurgical work will provide the basis for mill design and product marketing analysis. The purpose of the PEA is to evaluate the potential viability of the Project’s resources.
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 website.
This website was updated in October 2015.