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Graphite One climbs on drill results from Alaskan property

Last updated: 09:56 20 Nov 2013 EST, First published: 10:56 20 Nov 2013 EST

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Graphite One Resources (CVE:GPH)(OTCQX:GPHOF) jumped in early deals Wednesday after releasing the drill results from three holes at its Graphite Creek property in Alaska that extended mineralization an additional 850 metres west, showing high grades over significant widths. 

The latest results are part of a 10-hole diamond drilling program at the site, with the results from the first two holes released earlier this month extending mineralization 400 metres to the east of the existing inferred resource.

The total strike, including the effects of today's results, now equals some 3.45 km, according to the company's statement.

Highlights from the most recent drilling include 86.38 metres of 5.06% graphitic carbon, including 33.58 metres of 7.09% Cg and 10 metres of 13.07% Cg. The junior explorer said every hole continues to be mineralized from top to bottom, with near surface graphite.

An updated resource will be completed after all the 2013 drilling results have been received, it added.  

"It is exciting seeing one of the most significant, coarse flake graphite resources in the world grow with every drill hole," said president and director Anthony Huston. 

"Being an advanced stage graphite deposit in the United States is a significant advantage, for both permitting, funding and off take strategies in the future."

The Graphite Creek property, which is made up of 129 claims, stretches across some 6,799 hectares on the Seward Peninsula of Alaska, 65 kilometres north of a deep sea port at Nome. 

The property is just 18km from a seasonal road and approximately 30 km from a newly proposed deep sea port west of Teller (Port Clarence), which could be accessible by either land or water. 

Demand for graphite, which is the best known conductor of heat and electricity, was historically driven by the steel and automotive industries, but due to the industrialization of BRIC economies, demand for the material has increased by 5% per year since 2000. 

This growing, global demand is led by new applications such as hybrid-electric vehicles, fuel cells, lithium-ion batteries and graphene, with prices more than doubling for the product over the past three years. 

Shares were up at 17 cents in Toronto on Wednesday, higher by 3%, earlier rising to as much as 18 cents. The stock has a 52-week high of 26 cents. 

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