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are you at the symposium?
anybody know whats going on? trading halted for some reason
Graphite market set for growth, Focus Metals in prime position
Wed 8:24 am Gary Economo, president and CEO, Focus Metals, Special to Proactive Investors
As the graphite market bubble grows, so does investor interest and scrutiny of a mining sector bedeviled historically by supply/demand cycles, aided and abetted by China’s overwhelming market influence.
The United States, Europe and China regard graphite as a critical material for future industrial growth. Global markets know this fact and the response has been an explosion of interest, investment and growth in new graphite mine development.
Read rest of this article: http://www.proactiveinvestors.com/companies/news/26546/graphite-market-set-for-growth-focus-metals-in-prime-position-26546.html
can only be good for Focus
toronto - march 4-7
Another nice article a few days later.
February 27th, 2012
An Overflow Crowd Attends North America’s First Graphite Conference
By Greg Klein
Surveying the room, Zimtu Capital TSXV:ZC President Dave Hodge stated that soaring world demand for graphite presents great challenges and opportunities. The scene was Vancouver’s February 23 Graphite Express-Conference, where an SRO crowd of over 400 brokers, analysts and investors listened to presentations and met with representatives of the junior exploration sector. Hosted by ResourceClips.com publisher OnPage Media Corp, the event was the first in North America to focus on this hot commodity.
Keynote speaker Chris Berry, co-author of Morning Notes and founder of House Mountain Partners, emphasized the role of small-cap explorers in finding resources to satisfy both current and future demand. The future of graphite, he declared, is one of highly encouraging probabilities and mind-boggling possibilities.
Over 400 brokers, analysts and investors attended the Feb 23 Graphite Express-Conference in Vancouver
Graphite is already crucial to the steel industry. An extremely heat-resistant material, it’s used to line the refractories inside blast furnaces and the ladles and crucibles that hold molten steel. It’s also a key ingredient in strengthening steel. It’s used in a range of products including gaskets, brake linings, tennis rackets and golf clubs. It’s what puts the “lead” in pencils, and is essential to the burgeoning battery industry.
Lithium-ion batteries use anywhere from 10 to 30 times more graphite than lithium. Li-ion demand is expected to grow by 25% a year once the batteries become standard for phones, cameras, MP3 players and, especially, electric vehicles. Pebble-bed nuclear reactors could use as much flake graphite as the world now produces. Hydrogen fuel cells, Berry said, “could potentially require all of today’s current supply, never mind batteries, never mind nukes, never mind steelmaking.” Innovation could drive demand even further, and graphene—a truly extraordinary graphite derivative—is just the material to inspire innovation.
China currently produces about 80% of the world’s graphite supply but has restricted its exports. Resource nationalism, as Berry calls it, will play a crucial role in graphite supply and demand. Britain, the US and other countries have already designated graphite as economically critical.
He noted that emerging economies bring with them a rising quality of life, and “You can’t attain that without access to affordable, reliable and cheap electricity.
China’s current five-year plan “is the greenest in Chinese history,” Berry said, with the government committed to over $630 billion of energy research and development. “Graphite is essential to the Chinese drive to find next-generation technology in energy storage, energy generation and energy efficiency.”
According to the US Geological Survey, 2011 world graphite production totalled 1.1 million tonnes. Some 60% of that is amorphous graphite, suited to steelmaking and other traditional uses. Only 40% of current production is the flake graphite necessary for lithium-ion batteries and other new technologies. Traditional graphite use alone is expected to increase by 5% a year.
Berry explained, “These numbers ignore higher growth rates in batteries, that 25% I mentioned, and the potential for fuel cells and the potential growth in China and the US for pebble-bed nukes. Looking at the battery demand alone, compounded by 25% year on year until 2020, we’ll need 327,000 tonnes not just of graphite but of large-flake, high-purity graphite. If you add to that pebble-bed nuclear reactor demand just from China, that would require another 400,000 tonnes of large-flake graphite by 2020. Current global supply of large-flake graphite is just 400,000 tonnes. Batteries and pebble-bed nuclear reactors would require double the supply of large-flake graphite in the next eight years.”
Then there’s graphene. Thin enough to be transparent, more conductive than copper, 200 times stronger than steel, rollable, bendable, foldable, this graphite derivative has caught the imagination of R&D boffins around the world. Berry said the wonder material could replace silicon in microchips, making them smaller and faster. “That’s about a $9-billion-a-year market by my estimates.” Among graphene’s near-term commercial applications are amazingly tough bendy-screen phones and, looking further into the future, mobile displays.
Batteries and pebble bed nuclear reactors would require double the supply of large-flake graphite in the next eight years—which again I think makes the case for the junior companies going forward
—Chris Berry
The graphite market’s biggest concern is security of supply, Berry stressed. This gets tricky because graphite has to be refined according to each customer’s specific needs. “If you’re an automotive manufacturer or battery manufacturer, security of supply is what keeps you up at night” Berry said. “That makes the case for additional entry into the graphite space, especially by the juniors.”
Seven such companies took part in the conference, representing the “major exploration boom” Industrial Minerals has attributed to Canada. Their properties ranged from recent acquisitions to advanced-stage projects. But given the relatively low costs for every stage from graphite resource estimate to capex, as well as the strong potential for offtake agreements, the term “fast-track” became familiar.
Solace Resources TSXV:SOR chose the day of the conference to announce a proposed name change to First Graphite Corp, following closely on its option of the Montpellier Graphite Project in Quebec. Lomiko Metals TSXV:LMR entered the graphite space in January with an option to acquire a 100% interest from Zimtu in the Quatre Milles Graphite Property, also in Quebec. That same month, Cedar Mountain Exploration TSXV:CED optioned the Graphite Creek Property in Alaska. Standard Graphite TSXV:SGH now holds 12 graphite properties in Quebec and Ontario.
Strike Graphite TSXV:SRK has options with Zimtu on two graphite properties in Saskatchewan, as well as the Wagon Graphite Property in Quebec. Northern Graphite TSXV:NGC has taken its Bissett Creek Graphite Project in Ontario into feasibility. Most senior of Canada’s graphite juniors is Focus Metals TSXV:FMS, which is pushing the world’s highest-grade graphite deposit towards 2013 production at Lac Knife, Quebec.
“If I’m only halfway right, then obviously demand will outstrip supply, and when I look over the landscape, even the companies that exist today will not be able to satisfy the demand for high-purity, large-flake graphite—which means higher prices,” said Berry.
Following the event, OnPage Media principal Robert Bick said, “The tremendous success of this conference shows the keen interest in this white-hot commodity. Events like this bring investors and explorers together, helping them realize future opportunities. So we’ve already booked Chris Berry for a second graphite conference in Toronto.”
Disclaimer: Zimtu Capital Corp, Solace Resources Corp, Lomiko Metals Inc, Cedar Mountain Exploration Inc, Standard Graphite Corp, Strike Graphite Corp, Northern Graphite Corp and Focus Metals Inc are clients of OnPage Media and the principals of OnPage Media may hold shares in those companies
Nice run today.
This article came out on the 7th. Nothing but good things to say.
Graphite and Rare Earth Metals for the 21st Century: Jack Lifton
TICKERS: FMS, NGC; NGPHF, SER
Source: The Critical Metals Report Editors (2/7/12)
The list of once-obscure metals and minerals that are becoming "strategic" seems to be growing daily. However, population growth and rising living standards in developing countries are driving demand for most raw materials. In this exclusive interview with The Critical Metals Report, Institute for the Analysis of Global Security Senior Fellow Jack Lifton explains how increasing demand and harder-to-mine deposits are raising prices on these essential materials.
Companies Mentioned: Focus Metals Inc. - Northern Graphite Corporation - Strategic Energy Resources
The Critical Metals Report: In the last five years, investors discovered lithium and the rare earths. What will be the next big thing?
Jack Lifton: The answer is graphite. Graphite has traditionally been considered a boring, mundane industrial mineral, evoking thoughts of pencils, golf clubs and tennis racquets. Investors should think again. Traditional demand for graphite in the steel and automotive industries is growing 5% annually, and graphite prices have tripled. New applications such as heat sinks in computers, lithium-ion batteries, fuel cells, and nuclear and solar power are all big users of graphite. These consumers are beginning to place substantial demands on existing production—and over 70% of that production is from China, which is no longer selling this resource cheaply to the rest of the world as the country's easy-to-mine, near-surface deposits are becoming exhausted.
Graphite's criticality and potential scarcity has been recognized by both the United States and the European Union, which have each declared graphite a supply-critical mineral. Recently, the British Geological Survey ranked graphite right behind the rare earths and substantially ahead of lithium in terms of supply criticality. Clearly, there is much more to graphite than pencils.
TCMR: What about graphite makes it so important to all these end-users?
JL: Graphite and diamonds are the only two natural polymers of carbon. Both are very strong, can withstand extreme heat, and resist attack from chemicals and corrosion. While a diamond is a three-dimensional crystal structure of carbon, graphite possesses a two-dimensional flake crystal structure. Graphite is also a very good conductor of heat and electricity. Due to its amazing chemical and physical properties, new industrial, commercial and high-technology uses for graphite are constantly being discovered.
The lithium-ion battery is one of the fastest-growing uses of graphite. Each one actually contains greater than 10 times more graphite than lithium. These batteries are already widely utilized in the consumer electronics industry in devices like mobile telephones, laptop and tablet computers, and media players.
Other new technologies like fuel cells, will also drive demand. Fuel-cell-powered forklifts are in use in American warehouses. Some fuel-cell-powered taxis and buses are already found on city streets, and most major car companies will join Hyundai in producing fuel cell vehicles by 2015. To be clear, electric and fuel cell vehicles will not replace the internal combustion engine, however, they are part of the solution to reducing dependence on non-renewable energy resources and make a great deal of sense in many applications. Telecommunications companies are employing fuel cells around the globe for primary or backup power at cell phone towers and substations. A range of facilities, including stores, universities and business parks, are also using this clean, efficient technology for low-cost power that works independent of the grid.
Fuel cells convert chemical energy from a fuel source, often hydrogen but also natural gas or even an alcohol like methanol, that chemically reacts with an oxidizing agent like oxygen to create electricity. Because they operate at relatively low voltage, fuel cells are typically placed in series or parallel circuits to increase voltage and current. Fuel cells generate fairly low levels of emissions, as well as water and heat. In large installations, this heat can be captured and used for climate control and to produce additional power through cogeneration.
General Motors has already invested more than $2 billion in automotive fuel cell research and development, and is believed to be seeking additional investment from industry peers in exchange for rights to use the technology. German automotive companies BMW and Volkswagen both own stakes in SGL Carbon SE, the world's largest maker of carbon and graphite products. Just how much graphite will be required for fuel cells? The proton exchange membrane fuel cells being developed for use in cars would require 100 pounds of graphite per vehicle. The U.S. Geological Survey noted in 2010 that "large-scale fuel cell applications are being developed that could consume as much graphite as all other uses combined."
Graphite is also projected to be a key component in next-generation nuclear reactors, which are expected to reach temperatures of 1,000 degrees Celsius—triple the temperature inside today's commercial reactors. Graphite is one of the few substances that can resist such heat, with initial tests by researchers at the Idaho National Laboratory indicating that it can actually absorb heat as high as 3,000 degrees Celsius. Pebble bed nuclear reactors are small, modular reactors that are safer than conventional reactors because they "die" on their own when shut down. They are fueled by tennis-ball-sized graphite spheres with uranium embedded in them. Substantial amounts of graphite are required to charge the reactor at startup, and a percentage of the balls must be replaced each year as the fuel is spent, which creates ongoing demand for graphite. China has an operating prototype and is now building the first two commercial units, with plans to have 30 by 2020. These reactors are one of the top 16 priorities in China's 2020 strategic plan.
The vanadium redox battery, which offers great potential for storing excess energy generated by renewable energy sources like wind turbines and solar cells, is another notable emerging technology that would require significant amounts of graphite to produce. These batteries, which offer significant storage capacity, long life, low maintenance requirements, and a nominal environmental footprint, require some 300 tons (t) of flake graphite per 1,000 megawatt of storage capacity.
TCMR: Isn't there plenty of graphite in the world to go around?
JL: Natural graphite deposits can generally be characterized as one of three types: crystalline flake, amorphous or lump, also known as vein graphite. Total annual global graphite production increased substantially in the 1990s as China dumped graphite on world markets. Prices crashed and exploration and development in the rest of the world ceased. Production has now held steady for several years at approximately 1.1 million tons (Mt) as China appears to have reached the limit of its productive capacity and the commodity super cycle has soaked up excess supply. Since 2005 prices have basically tripled, and supply is tight.
Graphite mining and processing is currently limited to a small handful of countries, with China, India, Brazil and Canada the leading suppliers. Only 40% of world production yields flake graphite, the most desirable type for its suitability in high-value, high-growth applications. Only flake and synthetic graphite, which is made from petroleum coke through a very expensive process, can be used in lithium-ion batteries, the current demand driver for this crucial substance.
321energy.com owner Bob Moriarty recently commented, "If you believe in lithium-ion batteries, you would do far better by investing in a good graphite company than a good lithium company. . .With demand for graphite growing at 50% per year and prices reaching $2,500-3,000 a ton, the future for graphite companies with actual projects is excellent."
TCMR: What about the introduction of graphene, single-atom-thick sheets of crystalline flake graphite? How will the use of this material in phones and touch screens impact demand?
JL: Professors Kostya Novoselov and Andre Geim of the University of Manchester were awarded the 2010 Nobel Prize in Physics for their work with graphene. British Chancellor of the Exchequer George Osborne recently committed ~$80 million (M) to graphene research, a quest embarked on by almost every major research center and university as well as hundreds of companies, from IBM and Intel to Silicon Valley startups.
Graphene is being studied for use in ultra-high-speed microprocessors, as it conducts electricity at a rate 30 times faster than silicon. IBM is examining whether graphene's magnetic traits will allow it to be utilized in medical devices to spot diseases in their earliest stages. The company is also working with the U.S. Department of Defense's Defense Advanced Research Projects Agency to investigate whether graphene can improve mobile phone efficiency, wireless signal clarity and radar quality. Nokia is researching graphene's potential use in cell phones and touch screens, with the latter usage expected to become commercialized relatively soon, potentially in a foldable phone. One U.S. Department of Energy researcher believes that graphene's energy storage potential will lead to the development of batteries that will triple the range of today's electric vehicles without increasing battery size or weight.
In collaboration with South Korea's Sungkyunkwan University, Samsung researchers have created a flexible touchscreen several feet wide from "printed" graphene that could eventually be commercialized in strong, lightweight, flexible solar cells, touch sensors and flat-panel screens, perhaps maybe even directly integrated into clothing. While research-and-development activity is moving from university labs to corporate workplaces, scientists estimate that the first commercial applications of graphene technology are 5 to 10 years away.
TCMR: If the price goes too high will manufacturers simply engineer graphite out of their products?
JL: At the recent Graphite 2011 conference in London, Colin Cooper of Graphexel Ltd. said "new technologies [are] unlikely to overtake the graphite market demand for traditional end uses—such as refractories, metal casting, and lubricants—as the fundamental need for graphite in these lower value sectors [is] not going away." However, these traditional industrial users will find themselves competing for supply with those producing new technologies as there are very few, if any, economically feasible alternatives available and very little recycling of graphite.
The main technology that these traditional uses will be competing with in the near term is rechargeable lithium-ion batteries. Graphite serves as the anode in lithium-ion batteries, and there is no substitute for it in this application. Due to their advantages relative to other battery types—including their comparatively light weight, lack of memory effect, slow self-discharge rate and environmental safety—the lithium-ion battery industry is growing 30 to 40% annually as products such as power tools, consumer electronics, and hybrid and all-electric vehicles switch from other, inferior battery technologies.
Already, plug-in electric vehicles like the Chevy Volt, Nissan Leaf and Tesla Roadster rely on lithium-ion batteries, and the gasoline-electric hybrid models that have used nickel-metal hydride batteries for the past decade are making the transition to lithium-ion technology. The electric vehicle market is expected to grow as much as 20% annually by 2020, with expectations that between 3–6M such vehicles will be manufactured in 2020, each of which will require approximately 40 pounds of graphite for the battery system alone. Both U.S. President Barack Obama and Chinese leaders have stated that they want to see 1 million electric vehicles on the roads by 2015. An estimated 1 Mt additional graphite will be needed annually by 2020 for electric vehicles and other emerging applications.
TCMR: If current annual flake production is around 400,000 tons, where will all this new production come from?
JL: This booming demand will require more than a doubling of current global graphite production to meet the needs of traditional markets like North America and Europe, as well as such emerging markets as China, India, Russia and Brazil. Total graphite production across the globe has been consistent in recent years at approximately 1.1 Mt annually.
China's production is suitable only for industrial applications such as steelmaking and lubrication rather than high-tech uses like batteries and graphene. China already imports a significant amount of the graphite mined in North Korea.
Fortunately, graphite reserves are present around the world, though many sites would require several years of development and significant investment to begin production. Countries known to have reserves of highly valuable flake or crystalline graphite include Austria, Norway, Germany, Italy, Madagascar, Sri Lanka, Russia and Canada.
Governmental bodies have shown increasing concern about graphite's importance. The U.S. Department of Homeland Security's Critical Foreign Dependencies Initiative lists Chinese graphite mines as essential sites that would damage American interests if attacked. Graphite was also determined to be high in terms of both economic importance and supply risk in a 2010 European Commission study of 41 raw materials.
TCMR: What mining companies could fill this growing demand in the coming years?
JL: There is only a handful. Northern Graphite Corporation (NGC:TSX; NGPHF:OTCQX) is, in my opinion, the leading public graphite company. Northern Graphite has the "three Ps" of investing in junior resource companies: people, property and price.
Seven members of Northern Graphite's board and management team have significant senior management experience with mining and exploration companies and are widely known and respected in the mining and investment communities. CEO Gregory Bowes was senior vice president of Orezone Gold Corp. (ORE.TSX) and Ron Little, a director, is Orezone's CEO and founder. Orezone drilled off a 5 million ounce gold deposit in Burkina Faso, Africa, completed a bankable feasibility study and permitting, and started construction before its Essakane project was taken over by IAMgold Corp (IMG.TSX) in a $350M transaction. Iain Scarr, another Northern Graphite director, was commercial director of Rio Tinto's (RIO:NYSE; RIO:ASX) industrial minerals division for many years and is now vice president of corporate development at Toronto-based Lithium One Inc. (LI:TSX.V). Jay Chmelauskas, a director, is CEO and a director of Vancouver-based Western Lithium USA Corp. (WLC:TSX; WLCDF:OTCQX). Don Baxter, president, was mine superintendent at the Kearney Graphite mine in Ontario when it operated in the 1990s and was CEO of Ontario Graphite, which is presently attempting to reactivate the mine, before being lured away by Northern Graphite. George Hawley, technical advisor, started in the graphite business more than 40 years ago and is a leading minerals industry expert.
Northern Graphite's Bissett Creek graphite project has a number of significant advantages over other graphite deposits. It is located about two hours east of Ottawa, the nation's capital, and 10 miles from the TransCanada highway and associated natural gas pipeline, power lines and small communities where workers can live. It is five hours by truck from the port of Montreal and less than one day by truck from the major steel and automotive centers in the northeast United States.
Bissett Creek itself is a very large, low-grade deposit that is located right at the surface, which means it will be mined by simple open pit methods and will have a very low waste-to-ore ratio. It is also very flat lying and therefore production can be expanded by moving laterally rather than going deeper, which is much more expensive. North Graphite's original NI 43-101 report contemplated an operation producing 20,000 tons of graphite per year for over 40 years. Since that time, the resource has more than doubled and it is still open to the north and down dip. This indicates the deposit could support production of 70-80,000 tons per year and still have a mine life of more than 20 years. We do not know of any other graphite deposit in the world that has this degree of scalability and believe that at this production level it would be the largest graphite mine in the world. This feature should make it very attractive to potential strategic partners that want to secure a stable source of long-term supply to meet growing demand.
Another feature that makes Bissett Creek quite unique is that almost 100% of production will be large-flake (+80 mesh), high-purity graphite. Recent metallurgical test results have shown that 50% of production will be even larger, +48 mesh jumbo flake, which will result in premium pricing. We believe Bissett Creek will produce concentrates that have the highest average value per ton in the industry. While Bissett Creek will not be the lowest cost operation due to its relatively low grade, its near-surface nature and low strip ratio will help to balance this disadvantage out, meaning that costs will be in the middle of the pack. Bissett Creek should generate the highest margin per-ton of concentrate in the industry.
Northern Graphite expects to complete a bankable feasibility study in the first quarter of 2012; full permitting should be completed shortly thereafter. It will take approximately $80M and one year to build the mine, so Bissett Creek could potentially be in production in mid-2013. With the bankable study and permitting near at hand, Northern Graphite has a substantial head start on many other companies that have yet to commence either.
Northern conducted its IPO in April of 2011 at CDN $0.50 per share and closed the year at $0.94, which is fairly good performance considering that the TSX Venture Exchange was down about 40% over the same time period. However, with only 37.4M shares outstanding and 45.8M fully diluted, the company has a market capitalization of less than $40M. We consider this very cheap considering the quality of both management and the asset itself, as well as the advanced stage of the project. The company has a minable, diluted resource of over 1.3 Mt of graphite in the indicated and inferred categories, and almost all is large flake, high purity. Accordingly, the market is valuing the company at less than $30 per ton for a product that sells for close to $3,000 per ton and has a margin well over 50%. As the bankable feasibility study and permitting are completed in the near term and the investment profile of graphite goes mainstream, we expect the share price to move substantially higher.
Other possible future graphite suppliers include Focus Metals Inc. (FMS:TSX.V). It owns the Lac Knife graphite deposit near Fermont in Northern Quebec. Lac Knife has measured, indicated and inferred resources of approximately 8 Mt grading 15.6% graphite and is still open. Strategic Energy Resources (SER:ASX) is a junior Australian resource company that has interests in a number of mineral and oil & gas projects, including 100% of the Uley graphite deposit. Uley operated in 1993 and has a 14,000 ton per year (t/year) plant on site that is intact but will need to be refurbished. A recent Joint Ore Reserves Committee compliant resource estimate totals 6.6 Mt grading 8.7% graphitic carbon in the indicated and inferred categories.
Burke Resources Ltd. is a private Canadian company that intends to complete a qualifying transaction that will involve acquiring and reopening the Woxna graphite deposit in Sweden. The deposit has a resource of 6.9 Mt grading 8.8% (non NI 43-101) and a fully permitted 13,000t/year plant. It is anticipated that production could restart in two years.
TCMR: Any other advice for investing in a commodity that has doubled in price in three years?
JL: I expect prices to increase further. Mines old and new will accelerate their production efforts. Both existing mining and processing companies and startups will require investment; those who get in earliest will profit the most from the Great Graphite Rush.
Jack Lifton is an independent consultant and commentator, focusing on market fundamentals and future end-use trends of the rare metals. He specializes in sourcing nonferrous strategic metals and due diligence studies of businesses in that space. He has more than 47 years of experience in the global OEM automotive, heavy equipment, electrical and electronic, mining, smelting and refining industries.
Want to read more exclusive Critical Metals Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators and learn more about critical metals companies, visit our Critical Metals Report page.
DISCLOSURE:
1) The following companies mentioned in the interview are sponsors of The Critical Metals Report: Northern Graphite Corporation and Focus Metals Inc.
2) Jack Lifton: I personally and/or my family own shares of the following companies mentioned in this interview: None. I personally and/or my family am paid by the following companies mentioned in this interview: None.
Can't find anything. Maybe there is news coming out in the next couple of days to justify this.
Nice article. Makes me feel even better about my position with FOCUS.
of FCSMF or LMRMF?
Looking for very good things from this one. Sounds right, feels right.
More good news:
Focus Metals Inc. (TSX VENTURE: FMS)(OTCQX: FCSMF)(FRANKFURT: FKC) (the "Company") is pleased to report the results of the mineral resource estimate for its 100% owned Lake Knife Project near Fermont, Quebec.
The graphite mineral resource estimate was prepared by Edward Lyons, P.Geo. and Guy Saucier, Eng., independent Qualified Persons of Roche Ltd. ("Roche"). A Technical Report in compliance with National Instrument NI 43-101 will be filed on SEDAR within 45 days of this release. They have verified the information in this news release.
Mineral Resource Estimation
The new mineral resource estimate is based on the 105 drill holes (total 8,611 metres) drilled by Mazarin. Both the historical and modern data were used. Five zones were interpreted and modeled within the revised interpretation of the resource calculation. The block model was developed using GEMS software by Gemcom. Blocks are 5 metres long, 7 metres wide and 5 metres high. A cut-off of 5% Cgr (carbon as graphite) was used.
--------------------------------------------------------------
Category Tonnage Grade (%Cgr)
--------------------------------------------------------------
Measured 637,250 15.59
Indicated 4,334,890 15.68
Total (M+I) 4,972,140 15.67
Inferred 3,000,225 15.58
--------------------------------------------------------------
-- Measured and indicated resources totalling 4.97 million tonnes grading
15.67% Cgr.;
-- Inferred resources of 3 million tonnes grading 15.58% Cgr.;
-- Five different zones are included in the resource calculation; all zones
start from surface to a maximum depth of 125 metres with a total
extension of 350 metres by 650 metres; all zones remain open in all
directions; inferred resources can be upgraded to indicated resource
after completion of in-fill diamond drill holes.
-- Values displayed in this table are undiluted and "in-situ" as no
economic parameters, such as mining, milling or metallurgical recovery,
have been applied to these values, and therefore they demonstrate no
economic viability.
Interpolation Parameters
The inverse distance squared was used to interpolate the block using 3-metres assay composites. Each zone had its search ellipse parameters to interpolate the grade. The parameters were based on the geological difference in the deposit model. A single value of 2.86 t/m3 density was used for all models. No capping value was applied to the assays.
To report the resource and interpret the zones limits, a cut off grade of 5% Cgr was used in the model.
To ensure a "reasonable prospect of economic extraction", a Whittle optimized mining scenario was performed by Roche assuming an overall pit slope of 45 degrees, an operating cost of $42.20 US per tonne milled (including mining and milling costs), a 95% mining recovery, a 5% mining dilution and a conservative selling price of $1,600 US/tonne of concentrate. By comparing this Whittle shell to the report resource, less than 2% of the tonnage fell outside of the "Base Case" pit shell.
Classification
The classification of the resource was performed with three different passes. The following constraints were placed on each pass for the Measured, Indicated and Inferred Categories:
-- Measured: Blocks surrounding the drill holes in a 5 metres diameter
sphere. This category was only applied to zones (three out of five
zones) with good continuity and drilling spacing at 25 metres.
-- Indicated: An ellipse of 30 metres, 27 metres and 12.5 metres in the
main, major and minor axes, respectively, was used to select blocks
within the 25 metres by 25 metres drilling pattern. A minimum of 6
composites is required for this category.
-- Inferred: An ellipse of 80 metres, 75 metres and 37.5 metres in the
main, major and minor axes, respectively was used.
Twin Holes Campaign
In 2010 and 2011, in order to confirm the historical resources and the validity of the data obtained in the 1980s, eleven (11) twin drill holes were drilled. The 2010-2011 campaign was conducted under the supervision of IOS Services Geoscientifiques. A strong correlation was observed between the historical and the modern holes. The geological interpretation has been revised by Edward Lyons, P. Geo.
"This mineral resource estimate is a key milestone for Focus Metals as it lays the groundwork for a scoping study in 2012," said President and CEO, Gary Economo.
"This report validates our position that Focus Metals' Lac Knife property holds the best grade of graphite in the world," said Gary Economo. "It also establishes the regulatory benchmark for growth and development of our extraordinary property."
Mr. Economo added: "We knew of Lac Knife's potential value from the historic drilling results we inherited from its previous owners, and it formed the basis for our mine-to-market-to-technology business strategy."
Mr. Economo said an expanded, deeper and more comprehensive drilling program is planned for the spring of 2012 to update this initial resource estimate.
Mr. Tony Brisson, P. Geo., a Qualified Person as defined by NI 43-101 is responsible for the technical information contained in this release.
The beginning of a very good play
Gary Economo, President and CEO of Focus Metals Inc., (TSX VENTURE: FMS)(OTCQX: FCSMF)(FRANKFURT: FKC) "Focus Metals" and Grafoid Inc., "Grafoid" announced today the signing of a Memorandum of Understanding (MOU) between Grafoid Inc. and Rutgers University AMIPP Advanced Polymer Center to jointly develop graphene technology applications related to both polymer and non-polymer applications.
Focus Metals is the lead partner in Grafoid Inc., a graphene development and patenting joint venture, a private company.
Under the terms of the MOU, Rutgers University, an advanced materials research center that works with industry to commercialize new technologies, commits to providing the research and inter-disciplinary laboratory facilities.
Grafoid Inc. commits to providing human resources, graphene materials from Focus Metals' Lac Knife graphite resource, and graphene expertise for research and development purposes.
The agreement was signed by Mr. Economo as President of Grafoid Inc., and Professor Thomas Nosker, Principal Investigator for Rutgers University's Advanced Polymer Materials School of Engineering.
Mr. Economo said the MOU is the first of its kind for Rutgers University and a breakthrough for Focus Metals' graphene development initiative. The initial investigation of Lac Knife's graphite property was conducted on grab samples by Grafoid's Vice President and Chief Scientist Dr. Gordon Chiu.
"The graphene research and development activities undertaken to date by Dr. Chiu are heading towards a new phase, leading ultimately, we believe, to industrial applications for our graphene," Mr. Economo said.
"In time, and through further development in conjunction with Rutgers University we see Grafoid assuming its place as an industry leader not only in industrial and infrastructural applications, but in graphene applications for military and defense, aviation and marine and in other emerging industries where demand exists," he added.
On behalf of AMIPP (Advanced Materials via Immiscible Polymer Processing), Professor Nosker said a huge opportunity is waiting to be opened by the cooperative venture.
"I am very pleased that we have an opportunity to spearhead the exploration for the applications from the very high quality graphite received from the Lac Knife project in Canada," he said.
"This material, formed together in an igneous rock formation millions of years ago, has extreme high electrical conductivity relating to the perfection of the graphite crystals formed there.
"There are many engineering applications for these materials just waiting to be discovered," Prof. Nosker added.
In his comments, Dr. Chiu said the graphene material, or high-technology two-dimensional graphite in its purest, basic physical form, is now the subject of discovery by most scientific research institutions in the world.
"Rutger's AMIPP is a nationally recognized center for polymer research and their interest in the Focus Metals resource coincides with my own scientific findings," Dr. Chiu said.
"The possibility of Lac Knife's graphite material being used for novel discoveries in future hybrid materials and unique commercial processes is very high," said Dr. Chiu.
Mr. Economo summarized the MOU describing it as another step towards completing a Focus Metals business vision of creating a mine-to-market-to-technology application enterprise.
"For Focus Metals shareholders, the value-added graphene component could, in time, provide a further source of revenues fed from our Lac Knife graphite project," Mr. Economo said.
"We are in a unique position. Our ongoing and immediate goals are to establish an enterprise-leading position for both graphite and graphene," he said. "Our pact with Rutgers University brings us a step closer to attaining one of those goals."
Graphene, discovered in 2004, is a two-dimensional ultra-thin form of carbon produced from graphite. It is tougher than diamond, is heat-resistant and more, it is electrically conductive.
Graphene has been described as the "new silicon" and has sparked a global interest among scientists by providing an unparalleled opportunity for the investigation of commercial applications by virtually all scientific communities and disciplines.
The first commercial applications from graphene could appear as early as 2012 in touch-screen computing devices, but applications are being investigated now for telecommunications, computing (transistors and super-capacitors) military, aviation and automotive, medical, and renewable energy purposes.
Grafoid, in cooperation with Rutgers AMIPP will focus its investigations initially on infrastructural, aviation, automotive and other applications.
The technical information on the Lac Knife project in this release was reviewed by Tony Brisson, P. Geo., Vice President Exploration of Focus Metals Inc., who acts as Focus' Qualified Person as defined by National Instrument 43-101.
Nice coup for HH.
Hooper Holmes (NYSE Amex:HH) has been selected as the biological sample collection lead for the largest government study of tobacco use ever conducted in the United States.
The study is a landmark collaboration between the National Institutes of Health and the U.S. Food and Drug Administration. It is the first large-scale project on tobacco regulatory research since Congress granted FDA the authority to regulate tobacco products in the Family Smoking Prevention and Tobacco Control Act of 2009. Scientific experts at NIH's National Institute on Drug Abuse and the FDA's Center for Tobacco Products will coordinate the effort.
The study is properly known as the Tobacco Control Act National Longitudinal Study of Tobacco Users. Westat, in Rockville, MD., was awarded the research contract by the National Institute on Drug Abuse in a competitive solicitation process and has designated Hooper Holmes as the biological sample collection lead.
Over five years, investigators will follow more than 40,000 users of tobacco products nationwide and those at risk for tobacco use ages 12 and older. Participants will be interviewed annually and biological samples will be collected by Hooper Holmes.
"This five year study draws upon several of our strengths, including our national network of local health professionals and Heritage Labs' kit manufacturing," said Ransom J. Parker, President and CEO of Hooper Holmes. "Hooper Holmes is uniquely equipped to support longitudinal research studies and we are proud to have been selected as a partner in the Westat consortium."
Hooper Holmes will collect buccal cell, urine and blood samples from participants and provide collection kits. Buccal cell samples are samples taken by swabbing the cheek inside the mouth. Collection kits will be manufactured at Hooper Holmes' Heritage Labs division based in Olathe, KS.
Hooper Holmes will select and train phlebotomists from the Company's national network of 9,000 local health professionals to collect samples following study protocols.
The Company values its participation in the Westat consortium at approximately $6.7 million in revenue over five years, beginning in 2012.
Been watching for a breakout company to do something with graphene for about a year now. Missed the play with CVV. Hope this turns out to be worth the wait. Haven't pulled the trigger on a buy yet but have my eye on it.
outstanding dd/article toby3. thanks. I knew this was going to be a success. glad I got into it.
Hi toby3, welcome to the board. very interested in your post. what kind of information can you share about the "rumor" of a takeover by quest. would be good news if it was the real deal. thanks
Glad to see its making a nice little run
They are doing a reverse split (1 for 4) to get back in compliance with nasdaq to raise the price per share.
Just looking at my scottrade research and even the PR u referenced. At the end it listed the major shareholders. Of note: A 5% interest holder is a thing called TLW securities. That is owned by a guy named Tom Ward who is the CEO and President of Sandridge energy, also an OKLA company, and a major oil and gas player. So it says something about Graymark if he is invested in it.
:) No, no. Not 70% owned by institutions, but owned by "other than institutions"
I'm from Oklahoma and this is a Oklahoma company so I've been watching it a bit. The stock ownership worries me a little as 70% is owned by other than institutional entities.
Hey Renee, what got u interested in this stock?
Just got into this yesterday. Hope I haven't wasted my money