Northern Graphite Reports Additional Metallurgical Test Results Variability testing confirms large flake, high purity, high recovery throughout resource
Variability testing confirms large flake, high purity, high recovery throughout resource
OTTAWA, ONTARIO -- (Marketwire) -- 04/23/12 -- Northern Graphite Corporation (TSX VENTURE: NGC)(OTCQX: NGPHF) is pleased to announce that variability testing has been completed on its Bissett Creek Project and has confirmed that the high recovery of large flake, high purity graphite is consistent across the entire resource. The overall recovery from eight Locked Cycle Tests ("LCT") was 97% and almost all concentrate will qualify for large flake (+80 mesh), high carbon (94%) pricing. In fact, 33% of the concentrate was +50 mesh, 97% graphitic carbon ("Cg") and 19% was +32 mesh, 98% Cg which are exceptional products that will attract premium pricing based on both flake size and carbon content. In two of the locked cycle tests the +32 mesh concentrate reached 99% Cg.
SGS Metallurgical Services (Lakefield) ("SGS") performed the LCTs on representative drill core samples taken from a number of locations within the deposit to confirm that the recovery and flake size distribution were consistent throughout the resource. The eight LCT tests produced final concentrates which showed consistent flake size distribution and carbon content. The overall concentrate grade averaged 95% Cg with a 97% recovery. A concentrate which grades 94% Cg and has a flake size distribution of 80% greater than +80 mesh is the industry standard large flake product. Almost all Bissett Creek production meets this specification as 75% of the final concentrates were +80 mesh. Approximately 5% of the concentrate was +100 mesh, 94% Cg and 10% was +200 mesh, 93% Cg. Less than 9% was very small, -200 mesh flake grading 83% Cg. Concentrate smaller than -150 mesh and 90% Cg may not be salable unless it can be upgraded to +90% Cg which the Company believes it can achieve by recirculating the -200 mesh flake within the circuit.
Most significantly, 52% of the graphite concentrate produced was jumbo size, +50 mesh flake which averaged 97.4% Cg. Two of the tests produced +32 mesh flake at greater than 99 % Cg. No premium pricing was used in the Preliminary Economic Assessment and it will not be used in the bankable final Feasibility Study ("FS").
Gregory Bowes, Chief Executive Officer, commented that: "We have now successfully completed the full suite of metallurgical testing, including lab and bench scale work, a bulk sample/pilot plant test and now variability testing, and believe it confirms Bissett Creek concentrates will have the best flake size distribution and the highest carbon content in the industry." He added that: "With the FS scheduled for completion in May, 2012, Bissett Creek is one of the most advanced new graphite projects in the world."
Concentrate Flake Size Distribution (%) and Graphitic Carbon (Cg) Grade (%)
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Recovery +32 Cg +50 Cg +80 Cg +100 Cg +200 Cg
Composite % (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
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LG Pit #3 96.8 19.0 96.1 32.8 95.6 23.2 94.2 5.0 93.8 10.4 90.0
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LG Pit #4 95.2 22.6 97.6 32.6 96.3 20.1 94.6 4.6 92.3 9.5 91.2
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MG Pit #2 97.7 23.7 98.5 34.1 97.5 22.1 96.1 3.9 95.5 8.7 95.3
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MG Pit #4 96.8 25.7 97.5 32.8 96.5 19.9 95.5 3.8 94.5 9.3 92.3
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HG Pit #1 99.1 11.2 98.5 31.9 97.8 28.1 94.3 7.0 91.1 12.8 91.5
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HG Pit #2 96.2 14.8 99.2 32.8 97.4 25.9 96.1 5.9 95.0 12.0 93.3
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HG Pit #3 97.1 20.2 97.4 35.1 96.3 22.7 95.1 5.3 94.8 9.3 93.6
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HG Pit #4 98.3 15.7 99.0 32.0 98.9 24.4 94.9 6.0 95.2 11.7 94.7
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Average 97.1 19.1 98.1 33 97 23.3 95.1 5.2 94 10.5 92.7
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Note: 8.9% of concentrate was -200 mesh at 83% Cg
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Test work at SGS has been ongoing for the past year and a half and culminated in a pilot plant program in December 2011 which also demonstrated that over 50% of the recovered flake will be +50 mesh grading over 97% Cg. The overall carbon recovery in the LCT tests was 97.1% and indicate that with optimization, Pilot Plant recoveries of 90.5% to 94.5% can be increased to 95% in the full scale mill.
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 and close to infrastructure. A FS and Mine Closure Plan ("MCP") are expected to be completed and filed in May, 2012. On acceptance of the MCP the Company will be in a position to initiate construction, subject to positive results from the FS and the availability of financing.
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. 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.
Contacts:
Gregory Bowes, CEO
(613) 241-9959
Don Baxter P.Eng, President
(705) 789-9706