SRG Graphite increases resource estimate at Lola by 54%
Momentum Public Relations
Press Release: June 18 2018
SRG Graphite Inc. has provided an updated mineral resource estimate for its 100-per-cent-owned Lola graphite deposit located in the Republic of Guinea. The 2018 mineral resource estimate represents an increase of 54 per cent of in situ graphitic carbon (Cg) at a 3-per-cent cut-off grade since the publication of the maiden resource. In preparation for the next phase of development of the project, several boreholes were completed to increase measured and indicated resources from inferred resources. As such, measured and indicated resources increased from 224,118 tonnes to 676,900 tonnes of Cg content at a 3-per-cent cut-off grade, an increase of 201 per cent.
The 2018 Mineral Resource Estimate, prepared by Montreal-based Met-Chem, a division of DRA Americas Inc. (“Met-Chem/DRA”), includes a pit-constrained measured and indicated resource of 12.2 million tonnes (“Mt”) grading 5.6% Cg and an inferred resource of 2.1 Mt grading 6.1% Cg, using a cut-off grade of 3.0% Cg. Effective date of the estimate is June 14, 2018.
The 2018 Mineral Resource Estimate replaces the maiden mineral resource estimate which was reported by SRG on December 22, 2017, and subsequently included in a Technical Report completed by Met-Chem/DRA with an effective date of September 30, 2017. A NI 43-101 Technical Report will be filed on SEDAR within 45 days of this news release providing the details of this resource update. Figure 1 provides a map of the current drilling program. Completed boreholes, assay results pending and boreholes to be completed can be viewed on the map.
Resource Summary
The mineral resources are based on 395 boreholes for 12,086 meters (“m”) drilled up to April 4, 2018. Since that time, an additional 162 diamond drill holes have been completed, for approximately 5,686 additional meters for a total of 17,954 meters. Assay results for these additional holes are pending. Drilling onsite is ongoing and an additional 3,000 meters of drilling are scheduled to take place in the second half of 2018.
The updated resource is established for the oxide profile of the deposit, from surface to a depth ranging between 20 and 50 meters, with an average thickness of 32 meters. The mineralization continues at depth within the fresh rock material, but drilling is stopped once fresh rock is reached. The area for the resources covers approximately 33% of the deposit’s 3.2-square-kilometer surface area.
The estimate was prepared using a block model constrained with 3D wireframes of the principal mineralized domains. Values for graphitic carbon were interpolated using Ordinary Kriging (OK) interpolation methodologies on 10 * 10 * 2m blocks. As in the previous resource estimate, a preliminary open pit optimization algorithm was run on the estimated grade block model. Only mineralization contained within the preliminary pit shell has been included in the resource estimate.The base case mineral resource estimate is summarized in the following table at a cut-off grade of 3.0% Cg together with estimate sensitivities at 1.64% Cg and 5.0% Cg.
LOLA GRAPHITE PROJECT MINERAL RESOURCES AT A CUT-OFF GRADE OF 3.0% CG AND SENSITIVITIES AT 1.64%CG AND 5.0% CG CUT-OFF GRADES Base case mineral resources Cut-off grade Classification Tonnes Cg In situ Cg Cg % (Mt) (%) (t) 3% Measured 1.40 5.32 74,700 Indicated 10.79 5.58 602,200 Total ind. and meas. 12.20 5.55 676,900 Inferred 2.06 6.07 125,200 Sensitivities Cut-off grade Classification Tonnes Cg In situ Cg Cg % (Mt) (%) (t) 1.64% Measured 2.13 4.31 91,900 Indicated 17.00 4.39 746,400 Total ind. and meas. 19.14 4.38 838,400 Inferred 2.82 5.07 143,000 Cut-off grade Classification Tonnes Cg In situ Cg Cg % (Mt) (%) (t) 5% Measured 0.60 7.14 42,700 Indicated 5.02 7.46 374,800 Total ind. and meas. 5.62 7.43 417,500 Inferred 1.18 7.54 88,700
About Met-Chem/DRA
Met-Chem, a division of DRA Americas Inc., was originally established in 1969 as a consulting engineering company, headquartered in Montreal, and provides a wide range of technical and engineering services. Met-Chem is well recognized for its capabilities in mining, geology and mineral processing and has a talented team of engineering, technical and project management personnel with experience in North America, Latin America, Europe, West Africa and India. DRA is a multidisciplinary global engineering group that originated in South Africa and delivers mining, mineral processing, energy, water treatment and infrastructure services from concept to commissioning, as well as comprehensive operations and maintenance services for the mineral resources, water, agriculture and energy sectors. DRA has offices in Africa, Australia, Canada, China, India and the United States.
Qualified Person
Dr. Marc-Antoine Audet, P.Geo., Lead Geologist, SRG was responsible for estimating the mineral resources and has reviewed and approved the contents of this press release. Dr. Audet is a non-independent Qualified Person (“QP”) within the meaning of NI 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators. Under subsection 5.3(1) paragraph (c), as the mineral resources have changed by less than 100% from the previous filing, an independent QP is not required for the filing of this mineral resource update.
ABOUT SRG
SRG is a Canadian-based company focused on developing the Lola graphite deposit and the Gogota nickel-cobalt deposit, both located in the Republic of Guinea, West Africa. SRG is committed to operating in a socially, environmentally and ethically responsible manner.
We seek Safe Harbor.
- Published in SRG Graphite
SRG Graphite Inc. Announces Underwriters’ Full Exercise of Over-Allotment Option
Momentum Public Relations
Press Release: June 15 2018
SRG Graphite Inc. (TSXV:SRG) (“SRG” or the “Company”) is pleased to announce that the syndicate of underwriters co-led by National Bank Financial Inc. and TD Securities Inc. and including Macquarie Capital Markets Canada Ltd., Beacon Securities Limited and Clarksons Platou Securities AS (collectively, the “Underwriters”) for its May 2018 public offering (the “Offering”) of units of the Company (“Units”) has fully exercised the over-allotment option (the “Over-Allotment Option”) granted under the Offering to purchase 800,100 additional Units at a price of $1.50 per Unit (the “Offering Price”) for additional gross proceeds to the Company of $1,200,150. This results in aggregate gross proceeds of the Offering, including the exercise of the Over-Allotment Option on the date hereof, of $9,201,150. In addition to the previously announced concurrent private placement with Coris Capital S.A., this brings the aggregate gross proceeds of the raise to $11,201,150.
Each Unit issued under the Over-Allotment Option is comprised of one common share of the Company (a “Common Share”) and one Common Share purchase warrant of the Company (a “Warrant”). Each Warrant will entitle the holder thereof to acquire one additional Common Share at an exercise price of $2.30 per Common Share at any time for a period of 12 months from the closing of the Offering as press released on May 18, 2018.
The Company intends to use the proceeds from the Offering and the Over-Allotment Option for advancement of the Company’s Lola graphite project, including, in the near term, to further regional exploration and infill resource drilling and to progress towards a feasibility study; for continued exploration of its Gogota cobalt-nickel-scandium project; and for general working capital purposes.
The Offering was made pursuant to a short form prospectus dated May 11, 2018 (the “Prospectus”), filed in each of the Provinces of Canada and available on SEDAR at www.sedar.com.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
ABOUT SRG
SRG is a Canadian-based company focused on developing the Lola graphite deposit and the Gogota cobalt-nickel-scandium deposit located in the Republic of Guinea, West Africa. SRG is committed to operating in a socially, environmentally and ethically responsible manner.
For additional information, please visit SRG’s website at www.srggraphite.com.
For more information contact: | |
Ugo Landry-Tolszczuk | Benoit La Salle, FCPA FCA |
Tel: +1 (514) 679-4196 | Tel: +1 (514) 951-4411 |
Email: ultolszczuk@srggraphite.com | Email: benoit.lasalle@srggraphite.com |
Neither the 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.
Forward-Looking Statements
This press 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 “reduce”, “suggest”, “opportunity”, “demonstrate”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would” or “might” occur. 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) the Company’s use of proceeds of the Offering and the Over-Allotment Option may differ from those indicated; (ii) volatile stock price; (iii) the general global markets and economic conditions; (iv) the possibility of write-downs and impairments; (v) the risk associated with exploration, development and operations of mineral deposits; (vi) the risk associated with establishing title to mineral properties and assets; (vii) fluctuations in commodity prices and other risks and factors described or referred to in the sections entitled “Risk Factors” in the Annual Information Form of the Company and the Prospectus available at www.sedar.com, all of which should be reviewed in conjunction with the information found in this news release.
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 and no material adverse change in mineral prices. 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 given as of the date of this press release, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws.
- Published in SRG Graphite, Uncategorized