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Thursday, 15 November 2012
Focus Graphite finds new 900 metre-long graphite-bearing corridor at Lac Tetepisca
Focus Graphite (CVE:FMS)(OTCQX:FCSMF) has discovered a new graphite-bearing corridor on its Lac Tetepisca property, southwest of the Manicouagan reservoir, 234 kilometres north-northwest of Baie-Comeau, Quebec.
The company said that reconnaissance bedrock sampling carried out during the summer has found a 900 metre long by up to 100 metre wide graphite-bearing corridor on the property.
A total of 26 mineralized grab samples define the new "Manicouagan-Quest" graphitic corridor, 17 of which host graphitic carbon (Cgr) grades of over 5.59% Cgr. The highest grade from the samples is 45.8% Cgr, the company said.
The remaining eight grab samples from the 26 that delineate the graphitic trend show Cgr grades below 5.00%.
"We are very excited about our Manicouagan-Ouest graphite discovery as the new interpreted graphite-bearing corridor compares favourably in terms of length, width and grades to our world class Lac Knife graphite deposit, currently under advanced mineral development," said president and CEO Gary Economo.
"We will be planning a comprehensive follow-up exploration program for Lac Tetepisca in 2013 which will comprise of ground geophysical surveying, trenching and an initial round of core drilling in order to confirm the full extension and thickness of the graphitic corridor."
The new Manicouagan-Ouest graphite discovery is located 10 kilometres north of the Lac Gueret graphite deposit, which hosts NI 43-101 compliant measured and indicated mineral resources of 7.6 million tonnes grading 20.40% Cgr.
Fine to coarse graphite flakes and associated sulphides make up 10 to 20 per cent of the rocks in which the corridor is set, with up to over 50 per cent in "strongly mineralized zones", Focus said.
Last month, the graphite miner unveiled its long awaited preliminary economic assessment (PEA) on its flagship Lac Knife graphite project in Quebec, showing average concentrate grades of 92% graphitic carbon.
With a mine life of 20 years, the open pit operation is expected to yield 300,000 tonnes per year, with life-of-mine production of 928,000 tonnes of concentrate at 92% graphitic carbon on average, or approximately 46,600 tonnes of concentrate per year.
Pre-tax net present value - at a 10% discount rate - was estimated at $246 million with a 32% pre-tax internal rate of return and a pre-tax payback period of 2.8 years.
Initial capital cost was projected at $154 million, inclusive of $33 million and $24 million in working capital and contingency (25 per cent), respectively.
The company recently hired Quebec-based Terrapex Environnement to assist Focus in obtaining the required federal, provincial and municipal permits to develop its Lac Knife project toward commercial production.