How many mining/mineral sites are owned and active?
18.1 Risk of New Mining Operations
The Lochaber Property does not have an operating history. Whether income will result
from any of the Company’s activities, including, without limitation, the Lochaber
Property, will depend on the successful establishment of new mining operations,
including the construction and operation of a mine and the related infrastructure. As a
result, the Company is subject to all of the risks associated with establishing new mining
operations and business enterprises, including the timing and cost, which can be
considerable, of the construction of mining and processing facilities and related
infrastructure; the availability and cost of skilled labour and mining equipment; the need
to obtain necessary environmental and other governmental approval and permits and the
timing of the receipt of those approvals and permits; the availability of funds to finance
construction and development activities; potential opposition from non-governmental
organizations, environmental groups or local groups which may delay or prevent
development activities; and potential increases in construction and operating costs due
to changes in the cost of fuel, power, materials and supplies.
Various factors, including the successful construction, commissioning and ramp-up of a
mine on the Lochaber Property, costs, actual mineralization, consistency and reliability of
graphite grades, commodity prices, future cash flow and profitability can affect successful
project development, and there can be no assurance that current or future estimates of
these factors will reflect actual results and performance. The design and construction of
efficient processing facilities, the cost and availability of suitable machinery, supplies,
mining equipment and skilled labour, the existence of competent operational
management and prudent financial administration, as well as the availability and
reliability of appropriately skilled and experienced consultants can also affect successful
project development. It is common in new mining operations to experience unexpected
problems and delays during construction, development, mine start-up and
commissioning activities. Such factors can add to the cost of mine development,
production and operation and/or impair production and mining activities, thereby
affecting the Corporation’s profitability. Accordingly, there is no assurance that a mine on
the Lochaber Property will ever be brought into a state of commercial production or that
the Company’s activities will result in profitable mining operations.
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