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March 25, 2014 08:00 ET
Cavan Ventures Investigates Agriculture, Medicine and Real-Estate Opportunities

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 25, 2014) - CAVAN VENTURES INC. (TSX VENTURE:CVN) ("Cavan" or "the Company") is pleased to announce it intends to aggressively pursue, source and evaluate new potential projects in the medical marihuana sector, including, but not limited to, agriculture, medical, technology, and real-estate sectors.

Peter Swistak, President and Chief Executive Officer of Cavan Ventures Inc., states: "I believe it is imperative that the management of Cavan Ventures look at all potential opportunities that can create immediate and long term shareholder value."

At this time, there are no transactions in place, nor is there any assurance that a new project will be concluded in the future.

In the interim, Cavan ventures continue to move forward with both its drill ready projects.

The Buckingham property includes 24 claims located in Ranges VIII and IX, Buckingham Township, Quebec and covers an area of 1,682.8 hectares (4,157 acres). Buckingham is 1.7 kilometers north of the historic Walker graphite mine, which produced graphitic ore from 1876 to 1920. In July 2013, exploration on Buckingham along a 1,000 meter long linear EM conductor included grab and channel samples that returned assays from 0.46% to 11% Cg, with 21.70% Cg from a second parallel conductor (see news release July 8, 2013). A helicopter-borne magnetic and time-domain electromagnetic survey confirmed the historic conductor, and further resolved the second parallel conductor to a length of 300 meters (see news release September 24, 3013). The Company plans to drill five holes for a total of 1,200 meters to test the coincident graphite mineralization and airborne conductors.

The Tetepiska-East property includes 54 mining claims covering 2,925.72 hectares. As reported in December 2013, rock grab samples were collected along a 4.25 meter wide east-west oriented graphite-enriched zone assayed at 55.1% Cg. A second rock grab sample collected about 1.20 meters south of the first location returned 48.80% Cg. A third rock grab sample taken three meters north-northeast of the first location assayed at 10.45 % Cg. A channel sample 1.9 meters in length and 5 cm wide was collected with a diamond grit saw across the mineralized zone in the western part of the exposed area and returned an average of 52.65 % Cg, including a 63.50% Cg over one meter. A second channel sample 5.6 meters in length and with similar width was collected along the northern limit of the high grade zone and returned an average grade of 12.80% Cg (see news release December 19, 2013). The diamond drilling program at Tetepiska will include five to six holes totaling up to 1,200 meters, designed to test the graphitic mineralization at depth as well as their lateral extension.

The Company continues its efforts in obtaining permission for road access to the properties in order to begin drilling. To date a contract has been successfully negotiated with one of two logging companies for year round road use and hopes to conclude a similar negotiation with the second company in the near future. Having year round access greatly enhances the Company's ability to conduct exploration and drill programs on the properties.


Wall Street is still abuzz after the announcement in February by Tesla Motors (TSLA) to build a $5-billion lithium-ion battery Gigafactory somewhere in the southwestern United States.

By 2020, the Gigafactory will have the capacity to produce 50 times the amount of batteries shipped in Tesla cars in 2013 – and 20 times the total amount of electric vehicles sold last year.

The announcement certainly lit a fire under Tesla’s stock. (Before you read too much into the move, however, be sure to check out Chief Investment Strategist Louis Basenese’s take on Tesla, first.)

But Tesla’s announcement was also extremely good news for another group of stocks – a sector of stocks that doesn’t boast a sky-high valuation like Tesla.

I’m talking about the graphite industry.

Graphite Demand in Batteries to Double

Graphite is a key component in lithium-ion batteries for cars, not to mention in electronic gadgets such as the iPhone. Each electric car contains about 110 pounds of graphite.

So demand for graphite is already high. But with the giant Gigafactory coming on line in 2017, it’s going to boost demand for graphite even more.

In fact, some industry observers say that Tesla’s factory alone could more than double demand for graphite in batteries.

If operating at capacity by 2020, the plant would consume at least 28,000 tons of spherical graphite every year. That’s the equivalent of 93,000 tons of flake graphite.

Translation: Battery demand for natural graphite would soar by 112% from the current level of 83,000 tons per year. Overall demand for natural graphite would jump by 37%.

Of course, Tesla could opt for synthetic graphite. But that’s a more costly option, so it’s unlikely.

There is a problem, however…

The China Card

Currently, graphite is mostly mined and processed in China. But graphite pollution is severely affecting their environment, so the Chinese are cutting back on production – and closing dozens of mines in the process.

At the same time, the Gigafactory will require the output of six to nine new graphite mines to supply it.

That’s a real problem, considering that no significant new mines outside of China have been opened since the 1980s.

Luckily, that’s now changing… as new graphite projects are now underway outside of China. And all are being undertaken by junior mining companies.



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