Graphite One Resources is exploring, with the intent to develop, the Graphite Creek Deposit. The Graphite Creek Deposit is North America’s largest known large flake graphite deposit.
Graphite One says Graphite Creek in Alaska could be largest flake deposit in the world
Shares of Graphite One Resources (CVE:GPH) (GPHOF:OTCQX) rose over three per cent Monday, after the company announced that it filed its technical report for its maiden inferred resource at the Graphite Creek property in Alaska and said it believes the deposit to be the largest of its kind in the world.
Shares of the company rose 3.23 per cent on the news, trading at 16 cents as at about 2 p.m. EDT.
The NI 43-101 maiden inferred resource at Graphite Creek, which the company unveiled early last month, is estimated at 164.5 million tonnes at 4.61 per cent graphite, while the deposit has potential resources of 235 to 492 million tonnes of 4.2 to 7.9 per cent graphite.
The resource estimate, prepared by SGS Canada and APEX Geoscience, is based on the results from an 18-hole, 4,248-metre drilling program undertaken in 2012.
A base case cut-off grade of three per cent graphitic carbon was used, with 80 per cent recovery for a 95 per cent graphite concentrate and an average selling price of $1,200 per tonne.
"Based on the size of the inferred and potential resource, we believe this to be the largest reported flake graphite deposit in the world, and look to take an aggressive approach to advancing the project towards production in the near future," said president Anthony Huston.
"We have designed a comprehensive exploration program for 2013 that includes drilling, environmental studies, permitting, metallurgy, engineering, reporting and community relations initiatives, all of which are necessary steps for bringing the deposit into production."
Graphite One said the deposit remains open along strike to both the east and west, and down dip, adding that the drilling program and inferred resource confirm that near surface graphite mineralization exists in an area that is now over 2.2 kilometres in length.
"We are excited by the results of this independent National Instrument 43-101 inferred resource estimate, which represents a major milestone for the company and provides a solid base for further developing Graphite Creek,” said Huston.
“We believe that the property's considerable percentage of high grade large flake graphite, the envisioned low waste to ore strip ratio, readily accessible infrastructure, and prime location in a mining friendly jurisdiction make Graphite Creek a compelling development project.”
The Graphite Creek property is made up of 129 claims totalling 6,799 hectares on the Seward Peninsula of Alaska, 65 kilometres north of Nome.
"From a management perspective, the economics of this sizeable resource provide a strong incentive to fast track this deposit into production, thereby delivering significant value for our shareholders,” he concluded.
Flake graphite is the most actively pursued type of graphite and is used in batteries, steelmaking, expanded graphite, brake linings, foundry facings and lubricants.