Canada Strategic Receives Promising Results From Grand Prix and Champagne Project in Quebec With Results Up to 7.21% Carbon Graphite
MONTREAL, QUEBEC -- (Marketwired) -- 04/16/13 -- Canada Strategic Metals Inc. ("Canada Strategic Metals" or "the Company") (TSX VENTURE: CJC)(FRANKFURT: YXEN)(OTCBB: CJCFF) is pleased to announce that it has received graphite grab and channel sample assay results derived from the Company's recent sampling program on the Champagne and Grand Prix properties. The sampling program has confirmed presence of graphite bearing structures in many areas of the properties with results of up to 7.21% Graphite in grab samples and 6.16% graphite on two (2) meters in channel samples. Best assays are show in the table below(i).
Grand Prix grab samples:
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Sample No Graphite % Sample No Graphite % Sample No Graphite %
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115301 7.21 115306 1.80 115334 1.41
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115302 4.10 115307 0.43 115335 1.91
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115303 6.90 115308 0.98 115336 5.84
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115304 3.49 115309 1.24 115337 1.06
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115305 3.59 115310 0.66 115338 1.02
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Sample No Graphite % Sample No Graphite %
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115339 3.03 115344 2.98
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115340 3.02 115345 2.82
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115341 5.47 115346 3.33
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115342 1.48 115347 3.11
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115343 0.63
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Grand Prix channel samples:
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Length
Channel along the Average
name Easting Northing Bearing channel grade
(UTM) (UTM) (degrees) Mineralisation (m.) graphite %
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From (m) To (m)
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GPR1 463321 5526830 70 0.00 2.00 2.00 6.16
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GPR2 463332 5526809 290 0.00 4.00 4.00 3.51
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GPR3 463336 5526804 290 0.00 1.00 1.00 3.70
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GPR4 463341 5526628 170 0.00 6.00 6.00 3.07
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GPR5 463327 5526632 240 0.00 5.00 5.00 3.26
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(i)Channels do not necessarily represent the true width of the mineralized zone.
Champagne grab samples:
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Sample NoGraphite % Sample NoGraphite % Sample NoGraphite %
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115311 0.91 115312 0.64 115313 1.00
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Sample NoGraphite % Sample NoGraphite %
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115314 0.77 115315 2.05
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(i)Grab samples are selective by nature and are unlikely to represent the average grade of a deposit.
Management is encouraged that these samples confirm the presence of graphite, on surface, and over a large area, all of which offers great potential to develop a graphite resource on the Grand-Prix and Champagne properties.
Grand Prix property description
The Grand Prix and Grand Prix North graphite properties consist of two large blocks consisting of 273 mineral claims totalling approximately 14,976 hectares (150 square kilometers) and 15 mineral claims totalling approximately 829 hectares (8 square kilometers) respectively, both located approximately 110 kilometres and 130 kilometers north-west of Baie-Comeau, Quebec.
The Grand Prix and Grand Prix North properties were originally explored by Outokumpu Mines Inc. ("Outokumpu") in 1998 for base metal mineralization. An advanced helicopter borne geophysical survey consisting of 2,600 kilometers of flight path in the region was performed at that time. The airborne survey revealed multiple electromagnetic (EM) anomalies in the area, outside of or coinciding with magnetic anomalies. In a 30 kilometer long trend across the Grand Prix property, the survey revealed multiple EM target anomalies and off-set structures, including several zones of parallel conductors each measuring as much as 10 kilometers long. This suggests an apparent strike length of EM conductors associated with known graphite occurrences of approximately 20 kilometers and the total of all EM structure length close to 35 kilometers long. This helicopter borne geophysical survey was followed by ground exploration on approximately half of the major conductors only. The program was abandoned midway when it was concluded that all anomalies visited were related to graphite mineralization and that the base metal sulphides of 3 interests were nearly absent. This historical ground work also confirmed the presence of graphite on surface, coincident with at least several of these conductors.
Some of the graphite occurrences seem to be associated to the contact (shear zone) between the different geological units. The geology is consistent with the Central Metasedimentary Belt of the Grenville Province and includes quartzofeldspathic rocks, quartzite, biotite gneiss, marble and locally pegmatitic quartzofeldspathic rocks, and intrusive rock as anorthosite and gabbro. EM Anomalies associated with graphite on surface indicate an apparent strike length of approximately 20 kilometers, providing a large prospective area to explore for a graphite resource on both Grand Prix properties.
The properties logistics are excellent with nearby power and road access via the main lumber haul road which originates in Baie-Comeau and Labrieville leading to numerous tertiary/forest roads that transect the property.
Champagne Property Description
The Champagne graphite property consists of one large contiguous block of 88 mineral claims totaling approximately 4,870 hectares (48 square kilometers) located approximately 120 km north of Baie-Comeau, Quebec.
The Champagne graphite property was originally explored by Outokumpu in 1998 for base metal mineralization. According to Outokumpu's historical reports filed with the Ministere des Resources Naturelles et de la Faune du Quebec, an advanced helicopter borne geophysical survey consisting of 2,600 kilometers of flight path in the region was performed at that time. The airborne survey revealed multiple electro-magnetic (EM) anomalies in the area, outside or coinciding with magnetic anomalies. In a 15 kilometer long trend across the property, the survey revealed multiple EM target anomalies and off-set structures, including several zones of parallel conductors each measuring as much as 3-5 kilometers long. This suggests an apparent strike length of EM conductors associated with known graphite occurrences of approximately 11 kilometers and the total of all EM structure length close to 20 kilometers long providing a large prospective area to explore for a graphite resource on the Champagne property.
This helicopter borne geophysical survey was followed by ground exploration on approximately half of the major conductors only. The program was abandoned midway when it was concluded that all anomalies visited were related to graphite mineralization and that the base metal sulphides of interest were nearly absent. This historical ground work also confirmed the presence of graphite on surface, coincident with at least several of these conductors. Four of the EM conductors have been identified as 'strong' and are considered as potentially pod style targets averaging in size between 250 meters by 500 meters to 1.8 kilometers by 250 meters, with moderate EM signatures seemingly connecting them along the length of this trend. Seen as these areas were also identified as hosting graphite mineralization they are early high priority targets on the property.
Some of the graphite occurrences seem to be associated with the contact (shear zone) between the different geological units. The geology is consistent with the Central Metasedimentary Belt of the Grenville Province and includes quartzofeldspathic rocks, quartzite, biotite gneiss, marble and locally pegmatitic quartzofeldspathic rocks, and intrusive rock as anorthosite and gabbro.
Property logistics are excellent with nearby power and road access via the main lumber haul road which originates in Baie-Comeau and Labrieville leading to numerous tertiary/forest roads that transect the property.
About Graphite
Natural graphite comes in several forms: flake, amorphous and lump. Graphite has many important new applications including its use in lithium ion batteries, fuel cells and nuclear and solar power that have the potential to significantly increase the demand for this critical element. For instance, there is between 10 and 30 times more graphite required by weight to produce a lithium-ion battery than there is lithium. In addition, the recent discovery of a new material called graphene, which is actually derived from graphite, has also heightened interest. International research is now underway into a number of its potential applications including enhancing the speed and processing power of many modern electronic devices. This has also increased the interest in graphite.
Meanwhile, global consumption of natural graphite has increased from approx. 600,000 in 2000 to 1.2 MM t in 2012. Demand for graphite has been increasing by approximately 5% per year since 2000 due to the ongoing modernization of China, India and other emerging economies, resulting in strong demand from traditional end uses such as the steel and automotive industries. Of the 1.2 million tons of graphite produced annually, approximately 40% is of the most desirable flake type. China, which produces about 73% of the world's graphite, is seeing production and export growth leveling and export taxes and a licensing system have been instituted. A recent European Commission study regarding the criticality of 41 different materials to the European economy included graphite among the 14 materials high in both economic importance and supply risk (Critical Raw Materials for the EU, July 2010). As a function of these fundamentals, demand for graphite and thereby prices are expected to rise as electric vehicles and lithium battery technology continue to be adopted and while the material performs a greater role in new technology applications. Graphite prices have been increasing in recent months and over the last couple of years and prices for large flake, high purity graphite (+80 mesh, 0.2mm, 94-97% Carbon) have more than doubled.
(i)Grab samples are selective by nature and are unlikely to represent the average grade of a deposit.
Jean-Sebastien Lavallee (OGQ #773), geologist, shareholder and President and Chief Executive Officer of the Company and a Qualified Person under NI 43-101, has reviewed and approved the technical content of this release.
Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release, including statements regarding the Company's plans for and intentions with respect to the exploration of the Grand Prix and Champagne Properties constitute "forward-looking statements" and "forward-looking information" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company is able to obtain any required government or other regulatory approvals and any required financing to complete the Company's planned exploration activities, that the Company is able to procure equipment and supplies in sufficient quantities and on a timely basis and that actual results of exploration activities are consistent with management's expectations. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors relating to the Company's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks may include, among others, actual results of the Company's exploration activities being different than those expected by management, uncertainties involved in the interpretation of drilling results and geological tests, delays in obtaining required permits, government or other regulatory approvals or financing, inability to procure equipment and supplies in sufficient quantities and on a timely basis, equipment breakdowns and bad weather. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Jean-Sebastien Lavallee, P. Geo
President & Chief Executive Officer
819-354-5146
ir@canadastrategicmetals.com
www.canadastrategicmetals.com
Paradox Public Relations
514-341-0408