OTTAWA, ONTARIO--(Marketwired - Dec. 1, 2014) -
Focus Graphite Inc. (TSX VENTURE:
FMS) (OTCQX:FCSMF) (FRANKFURT:FKC)
("Focus" or the "Company") is pleased to announce the completion and
filing of an Environmental and Social Impact Assessment ("ESIA") for the
Lac Knife Project located in northeastern Québec. Golder Associates
completed the study and the report. This significant milestone is one of
several initiatives underway that are contributing to the ongoing
process of de-risking Lac Knife's Project development.
A Feasibility Study that demonstrates the technical and economical viability of the Lac Knife project was filed on August 8
th,
2014. Since then, the general site layout of the Feasibility Study was
further optimized between July and October. This optimized site layout
is included in the ESIA report and is being used to consult with
communities including the Uashat mak Mani-Utenam ("ITUM") First Nation
and community stakeholders in Fermont with respect to their sustainable
development interests. The mine site layout and design will be refined
further during the upcoming detailed engineering phase of the project.
The ESIA is the main document used to communicate and discuss
details of the project to all concerned regulators and community
stakeholders regarding the project's impact, risk mitigation, and
potential benefits. The Lac Knife ESIA was filed with Québec's
provincial authorities at the Ministère du Développement Durable, de
l'Environnement et de la Lutte contre les Changements Climatiques
("MDDELCC").
The Company is working in collaboration with MDDELCC
regarding the various permits required for developing the Lac Knife
Project and this process will continue towards the objective of
obtaining the final Decree from the government of Québec.
Don Baxter, President and Chief Operating Officer of Focus
Graphite said: "We are very pleased to announce this significant
milestone that furthers our sustainable development initiatives by
integrating both social and environmental aspects of the Lac Knife
project. This report is the result of several years of fieldwork and
consultation with stakeholder communities in the area, and is an ongoing
initiative. The Project team that we have assembled continues to
deliver important milestones that continue to advance and de-risk the
project.
It is worth noting that this relatively low cost flake graphite
mining project also has a very small carbon footprint compared to other
graphite projects outside Quebec due to Hydro Québec's hydroelectric
power that is a key economic and environmental variable for the
project."
Worthy of mention is that
the Lac Knife battery ready
graphite project is a relatively small-scale mining operation with a
relatively small footprint in a well-established mining district.
Following the Company's news release on May 27
th
titled "Independent Test: Focus Graphite Succeeds in Producing
Extremely
High-Performing Coated Spherical Graphite For Lithium Ion Batteries", a
Preliminary Economic Assessment of this second transformation into
spherical graphite is planned. This study regarding value added products
is not within the scope of the current Lac Knife project but it is now
an integral part of the process for obtaining a mining lease. The Lac
Knife concentrate would be further processed in a separate commercial
scale production facility to manufacture spherical graphite.
Therefore, participation in this project offers the potential
added value of this second transformation to spherical graphite used in
Li-ion batteries that will help to enable the electrification of
transportation and other green technologies as well as creating more
jobs in the secondary transformation sector. These are key interests
with respect to the Plan Nord in Québec. Both the mine site and the
spherical graphite production plant would be powered by Hydro Québec's
low cost and low carbon footprint sustainable energy sources.
Neither the capital expenditures or operational costs nor the
potentially higher margins associated with the second transformation of
graphite concentrate into spherical graphite products are included in
Lac Knife's current project economics.
The positive Feasibility Study for the Lac Knife Project
covers a 25 year mine life based on 7.86 million tonnes (429,000 tonnes
Proven and 7,428,000 tonnes Probable) of Proven and Probable Reserves
grading 15.13%Cg. The project has the potential to become a low cost
high quality battery ready graphite producer with an internal rate of
return of 30.1% before-tax (24.1 after-tax) based on an average value of
$1,713 per tonne of high carbon content concentrate (base case). The
payback period is estimated at 3 years.
Qualified Person
The technical information in this news release was prepared,
reviewed and approved by Mr. Don Baxter, P. Eng., Focus President &
Chief Operating Officer, a Qualified Person as defined by NI 43-101
guidelines.
About Focus Graphite
Focus Graphite Inc. is an emerging mining development company
with an objective to produce value added products initially for the
lithium ion battery market from the Lac Knife graphite deposit located
south west of Fermont, Québec. The Lac Knife project hosts a NI 43-101
Measured and Indicated Mineral Resource Estimate* of 9.6 million tonnes
(432,000 tonnes Measured and 9,144,000 tonnes Indicated) grading 14.77%
graphitic carbon (Cg) as natural flake graphite with an additional
Inferred Mineral Resource Estimate* of 3.1 million tonnes grading 13.25%
Cg. Focus' goal is to assume an industry leadership position by
becoming a low-cost producer of technology-grade graphite. The
Feasibility Study filed with SEDAR on August 8, 2014 for the Lac Knife
Project indicates the project is economically viable and has the
potential to become a low cost graphite producer based on 7.86 million
tonnes (429,000 tonnes Proven and 7,428,000 tonnes Probable) of Proven
and Probable Reserves grading 15.13 Cg. On May 27, 2014 the Company
announced the Potential for High Value Added Sales in the Li-Ion Battery
Sector following battery coin cell tests performed on Lac Knife
Spherical Graphite ("SPG"). Testing measured the performance metrics and
confirmed Focus' capability to tailor lithium ion battery anode grade
graphite and value added products to meet the most stringent customer
specifications. Focus Graphite is a technology-oriented enterprise with a
vision for building long-term, sustainable shareholder value. Focus
also holds a significant equity position in graphene applications
developer Grafoid Inc.
*
Mineral resources are not mineral reserves and do not have demonstrated economic viability
Forward Looking Information
This News Release contains "forward-looking information"
within the meaning of Canadian securities legislation. All information
contained herein that is not clearly historical in nature may constitute
forward-looking information. Generally, such forward-looking
information can be identified by the use of forward-looking terminology
such as "plans", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or variations of
such words and phrases or state that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur" or "be
achieved". Forward-looking information is subject to known and unknown
risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of the Company
to be materially different from those expressed or implied by such
forward-looking information, including but not limited to: (i) volatile
stock price; (ii) the general global markets and economic conditions;
(iii) the possibility of write-downs and impairments; (iv) the risk
associated with exploration, development and operations of mineral
deposits; (v) the risk associated with establishing title to mineral
properties and assets; (vi) the risks associated with entering into
joint ventures; (vii) fluctuations in commodity prices; (viii) the risks
associated with uninsurable risks arising during the course of
exploration, development and production; (ix) competition faced by the
Company in securing experienced personnel and financing; (x) access to
adequate infrastructure to support mining, processing, development and
exploration activities; (xi) the risks associated with changes in the
mining regulatory regime governing the Company; (xii) the risks
associated with the various environmental regulations the Company is
subject to; (xiii) risks related to regulatory and permitting delays;
(xiv) risks related to potential conflicts of interest; (xv) the
reliance on key personnel; (xvi) liquidity risks; and (xvii) the risk of
potential dilution through the issue of common shares.
Forward-looking information is based on assumptions
management believes to be reasonable at the time such statements are
made, including but not limited to, continued exploration activities, no
material adverse change in metal prices, exploration and development
plans proceeding in accordance with plans and such plans achieving their
stated expected outcomes, receipt of required regulatory approvals, and
such other assumptions and factors as set out herein. Although the
Company has attempted to identify important factors that could cause
actual results to differ materially from those contained in the
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be no
assurance that such forward-looking information will prove to be
accurate, as actual results and future events could differ materially
from those anticipated in such forward-looking information. Such
forward-looking information has been provided for the purpose of
assisting investors in understanding the Company's business, operations
and exploration plans and may not be appropriate for other purposes.
Accordingly, readers should not place undue reliance on forward-looking
information. Forward-looking information is made as of the date of this
News Release, and the Company does not undertake to update such
forward-looking information except in accordance with applicable
securities laws.
Focus Graphite Inc.
Mr. Don Baxter, P.Eng
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