Focus Metals (CVE:FMS)(OTCQX:FCSMF) said Wednesday that metallurgical testing of its Lac Knife graphite property reported the deposit held 46.1 percent large flake, and an overall global recovery test rate of 85.9 percent.
The company’s shares were up 10.38 percent on the back of Wednesday’s news, at $1.17.
Focus said that the testing, by SGS Metallurgical Services, also revealed that the Quebec deposit held 39 percent medium flake.
Focus Metals said that in addition to the 46.1 percent large flake, the balance of available graphite flake can be used for the
production of anodes for the high-growth lithium battery manufacturing sector.
company’s president and CEO Gary Economo said Lac Knife's premium large
flake will command premium prices in the graphite market, building
additional shareholder value.
"Lac Knife's 16 percent grade and a
large flake concentration of 46 percent validate our deposit's
commercial primacy in an emerging and highly competitive sector,
especially when the balance of our resource can be largely dedicated to
battery-grade applications,” said Economo.
"As a business, grade
and quality are the key elements to Lac Knife's commercial viability.
And increasing recoveries by utilizing new processing and purification
technologies will provide additional value to actual results.
will also continue to improve our production circuit design to reflect
the processing and production requirements for potential customers."
reported that premium large flake graphite is the most in-demand size
for use in technology applications and the least available in current
The company said the next phase of testing will be in a
locked cycle test designed to improve the global recovery and to provide
a flow sheet and operating parameters for use in Focus Metals' preliminary economic assessment.
is an emerging mid-tier junior graphite company and is the owner of the
highest-grade technology graphite resource in the world.
February 23, 2012, Focus entered into an agreement with Cormark
Securities and Byron Capital for a bought deal private placement worth
roughly $6.5 million, with an option to acquire an additional $3.5
million in shares structured under Canada’s flow-through share investing
The company said proceeds from the bought deal will be used to cover exploratory drilling costs this year.
part, funds will be used for nine potentially promising high-grade
graphite targets on the Lac Knife property, in addition to the company’s
previously announced expanded drilling program for its eight million
By the end of 2012, Focus Metals said it should be in a position to revise and upwardly re-state its technology graphite holdings.