Focus Metals reports initial 8.0 MT of total resources at Lake Knife

Focus Metals (CVE:FMS)(OTCQX:FCSMF) reported Monday a maiden resource estimate for its Lake Knife graphite project near Fermont, Quebec, outlining around eight million tonnes of total resources.
The NI 43-101 compliant estimate, which was prepared by qualified geologists of Roche, was based on the 105 drill holes of 8,611 metres that were drilled by Mazarin. The company said five zones were modeled within the resource calculation, all of which start from surface to a maximum depth of 125 metres, with a total extension of 350 metres by 650 metres.
Total measured and indicated resources were estimated at 4.97 million tonnes grading 15.67% carbon as graphite (Cgr), while total inferred resources came in at around 3.0 million tonnes grading 15.58% Cgr.
Focus said all five zones remain open in all directions, and inferred resources can be upgraded to the indicated category after the completion of infill diamond drill holes.
"This mineral resource estimate is a key milestone for Focus Metals as it lays the groundwork for a scoping study in 2012," said president and CEO, Gary Economo.
"This report validates our position that Focus Metals' Lac Knife property holds the best grade of graphite in the world. It also establishes the regulatory benchmark for growth and development of our extraordinary property.
We knew of Lac Knife's potential value from the historic drilling results we inherited from its previous owners, and it formed the basis for our mine-to-market-to-technology business strategy."
An expanded and more comprehensive drilling program is planned for the spring of 2012 to update this initial resource estimate, Focus said.
The company also said that the values in the resource are undiluted and in-situ, as no economic parameters, such as mining, milling or metallurgical recovery, have been applied. A cut off grade of 5% Cgr was used for the estimate.
Focus Metals holds 100 percent of the Lake Knife property, located some 35 kilometers south of Fermont, Quebec.
The asset is at the pre-development stage, with infrastructure, surface mining and primary processing facility construction activities planned for completion by 2013.
A secondary enrichment and refining facility capable of producing technology-grade, 99.9% graphite is scheduled for commissioning in 2014.
When complete, the property is expected to produce up to 25,000 tons of graphite per year with a 40-year, extendable mine life.
In 2010 and 2011, in order to confirm historical resources and data obtained in the 1980s, 11 twin holes were drilled. The company said a strong correlation was seen between the historical and new holes.
Focus Metals is a mid-tier junior mining company that is focused on becoming the lowest-cost producer of technology-grade graphite.