Northern Graphite Corporation Reports Metallurgical Test Results
OTTAWA, ONTARIO -- (Marketwire - Sept. 23, 2011) - Northern Graphite Corporation (TSX VENTURE: NGC) (OTCQX: NGPHF) is pleased to announce that metallurgical testing on its Bissett Creek Project has indicated that almost 50% of the graphite concentrate produced will be jumbo size, +48 mesh flake with a very high carbon content averaging 98%. This is an exceptional product that will attract a premium price based on both flake size and carbon content. Testing also confirmed results from the extensive historical testing, bulk sampling and pilot plant work that was carried out in the past and has validated the performance of the new flow sheet that will form the basis for the bankable Feasibility Study (“FS“) currently underway.
SGS Metallurgical Services (Lakefield) performed Locked Cycle Testing on composite material taken from drill core samples across the deposit. The test produced six final concentrates which showed consistent flake size distribution and carbon grade. The overall concentrate grade averaged 95%C. A concentrate which grades 94%C and has a flake size distribution of 80% greater than +80 mesh is the industry standard premium product. Current prices are $2,500 to 3,000 per tonne and almost all Bissett Creek production meets this specification as the final concentrates averaged over 70%, +80 mesh. Approximately 6% of the concentrate was +100 mesh and 12% was +200 mesh, both with high carbon content. Less than 10% was very small, -200 mesh flake and powder with a carbon content in the low 80s.
Most significantly, almost 50% of the graphite concentrate produced was jumbo size, +48 mesh flake which averaged 98%C with one value as high as 99.2%C. In the interests of conservatism, no premium pricing was used in the Preliminary Economic Assessment and it will not be used in the bankable Feasibility Study.
Gregory Bowes, Chief Executive Officer, commented: “We believe that the ability to produce large flake, high carbon (98-99%) concentrates from flotation alone, without chemical or thermal treatment, is another factor that makes the Bissett Creek deposit unique. Test results confirm that the Bissett Creek Project will produce almost entirely high purity, large flake graphite and a very high percentage could potentially be used to produce high value spherical graphite for use in Li ion batteries. “
Concentrate Flake Size Distribution (%) and Graphitic Carbon (Cg) Grade (%)
Test Cycle +48(%) Cg(%) +80(%) Cg(%) +100(%) Cg(%) +200(%) Cg(%) -200(%) Cg(%)
A 56.0 99.2 28.7 96.5 4.4 95.7 7.9 93.6 2.9 80.7
B 49.6 98.1 24.2 95.2 5.7 94.3 12.2 94.0 8.2 84.5
C 44.0 97.0 25.6 94.4 5.9 95.0 13.5 92.0 11.0 81.4
D 50.7 97.8 25.0 94.9 5.9 94.5 11.6 93.4 6.7 84.0
E 52.1 98.7 25.8 94.9 4.7 95.1 10.5 92.5 6.9 81.9
F 45.0 97.9 26.9 96.6 6.5 95.2 12.8 93.9 8.8 82.7
Average 49.6 98.1 26.0 95.4 5.5 95.0 11.4 93.2 7.4 82.5
Test work at SGS has been ongoing for the past year and will culminate in a pilot plant program that will start in two weeks. Results should be available within five to six weeks. The pilot plant is designed to further confirm the flow sheet being incorporated into the FS and will optimize its operating parameters. The overall carbon recovery in the locked cycle tests was 92.2% and the Company's objective is to increase it to 94 to 95% without degradation of flake size. The FS is expected to be completed and filed on Sedar by year end. All mine permitting is expected to be completed in the first quarter of 2012 at which time the Company will be in a position to initiate construction subject to positive results from the FS and the availability of financing.
Don Baxter, P.Eng, President of the Company and a “Qualified Person“ under 43-101, is responsible for and has reviewed and approved the technical content of this press release.
About SGS Metallurgical Services (Lakefield)
SGS Metallurgical Services is recognized as the world leader in the development of bankable flowsheets and pilot plant programs. SGS Metallurgical Services was founded over half a century ago. Its metallurgists, hydrometallurgists and chemical engineers are experienced in all the major physical and chemical separation processes utilized in the recovery of metals and minerals contained in orebodies around the world.
About Northern Graphite Corporation
Northern Graphite Corporation is a Canadian company that has a 100% interest in the Bissett Creek graphite project, located 17kms from the Trans Canada highway between Ottawa and North Bay, Ontario.
Graphite prices have increased substantially due to the ongoing modernization of China and other emerging economies which has resulted in strong demand from traditional steel and automotive markets. In addition, new applications such as lithium ion batteries, fuel cells and nuclear power have the potential to create significant incremental demand growth. It takes 20 to 30 times as much graphite as lithium to make a Li ion battery and their use in the growing EV/HEV market is expected to require significant increases in graphite production. However, graphite production and exports from China, which produces 70% of the world's supply, are expected to decline and an export tax and a licensing system have been instituted. Both the European Union and the United States have declared graphite a supply critical mineral.
Northern Graphite is well positioned to benefit from this compelling supply/demand dynamic with a near term development project located in Canada and close to infrastructure. Additional information on Northern Graphite Corporation can be found under the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.northerngraphite.com.
This press release contains forward-looking statements, which can be identified by the use of statements that include words such as “could“, “potential“, “believe“, “expect“, “anticipate“, “intend“, “plan“, “likely“, “will“ or other similar words or phrases. These statements are only current predictions and are subject to known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from those anticipated by the forward-looking statements. The Company does not intend, and does not assume any obligation, to update forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by applicable securities laws. Readers should not place undue reliance on forward-looking statements.
Neither 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.
Contact Information
Gregory Bowes
CEO
(613) 241-9959
Don Baxter P.Eng
President
(705) 789-9706