Graphano Energy Signs Option Agreement to Acquire Standard Graphite Mine and Adds Additional Claims Near Lac Aux Bouleaux
Vancouver, British Columbia–(Newsfile Corp. – June 28, 2022) – Graphano Energy Ltd. (TSXV: GEL) (OTCQB: GELEF) (FSE: 97G0) (“Graphano” or the “Company“) is pleased to announce that it has entered into an option agreement (the “Option Agreement“) with Mr. Daniel St-Pierre (the “Vendor“), pursuant to which the Company has been granted the exclusive right and option to acquire 100% of the Standard graphite historical mine (“Standard“), located 32 km northeast of the Company’s Lac Aux Bouleaux graphite project.
Luisa Moreno, Chief Executive Officer of the Company, stated: “Based mostly on historical reports we were able to drill right through the high-grade mineralization at the historical Standard mine. Going forward we will develop a detailed exploration plan for Standard, starting with airborne geophysics, with the aim of defining additional significant resources within trucking distance that could be added to future production from the historical resource at Lac Aux Bouleaux. The forward plan is to consolidate potential resources from our regional claims and to feed our own centralized processing plant using the existing mill buildings at Lac Aux Bouleaux.”
Key Results at Standard
- Twenty grab samples from recent visits to the site yielded assay results between 5.32% Cg and 26.4% Cg. The average grade of the 20 samples was 19.8% Cg (see Table 1).
- Historical trench and pitting work resulted in 9.0% Cg over 4.2 m, 22.4% Cg over 3.04 m and 11% Cg over 10.6 m.
- Recent drilling results yielded 11.61% Cg over 3.3 metres (see Table 1).
During recent site visits, twenty surface grab samples were collected from numerous old trenches, pits and bedrock sources within a 100 m by 75 m area near the historic Standard Mine shaft area. This work has confirmed the historic reports of multiple horizons of high-grade graphite mineralization. The recent grab sample assays range in grade from 5.32% Cg to 26.4% Cg. The average grade of the 20 samples collected was 19.8% Cg.
In May 2022, the Company completed three short drill holes totalling 127 metres in the shaft area. Two of the holes intersected encouraging graphite mineralization highlighted by an intersection of 11.61 % Cg over 3.3 m (core length). The third hole entered the old underground mine workings at a depth of 23 m and was abandoned without testing the mineralization. Details of the surface sampling and drill program are contained in Table 1 below.
Table 1 – Standard Mine Project: Rock Sample and Drill Hole Results
|Rock Samples from Standard Mine Shaft Area|
|Sample #||Easting||Northing||Remarks||% Cg|
|E57951||483178||5154208||Bedrock Grab Sample||16.9|
|2022 Diamond Drilling: Standard Mine Shaft Area|
|Hole No.||Azimuth||Dip||Easting||Northing||From (m)||To (m)||Interval(m) A1||% Cg|
|ST22-03||332||-49||483125||5154185||Hit underground mine workings – Abandoned|
|Notes:||A1 Intervals are core length. True width will be defined with additional drilling|
|Hole Depths: ST22-01 = 51m; ST22-02 = 53m; ST22-03 = 23m|
|UTM Nad 83, Zone 18|
An airborne geophysical survey will be conducted at Standard in June/July of 2022. A detailed exploration plan is also being developed to advance this project.
All surface grab and drill core samples were bagged and tagged using best practices and were delivered to Activation Laboratories (“ACTLABS“), Ancaster, Ontario, for sample preparation and analyses using laboratories’ Code 4F-C Graphitic, analyzing C-Graphite (infrared) where the sample is subjected to a multistage furnace treatment to remove all forms of carbon with the exception of graphitic carbon; and C-Total (infrared). ACTLABS is an independent commercial, accredited ISO Certified Laboratory.
Terms of the Option Agreement
The Option Agreement covers six claims totalling 355 hectares. At the closing of the Option Agreement the Vendor will receive 50,000 common shares of Graphano. On the first anniversary of the Option Agreement the Vendor will receive 50,000 additional shares of Graphano and on the second anniversary the Vendor will receive 100,000 additional shares of Graphano, plus a cash payment in the amount of $20,000. The Vendor will retain a royalty of 2% net smelter returns on future production from the Standard Mine property. The Company will have the option to purchase the royalty for $600,000 cash at any time.
The Option Agreement is subject to acceptance by the TSX Venture Exchange.
Standard Historical Graphite Mine Highlights
The area is underlain by sedimentary rocks of Precambrian age, known as the Grenville Series. The main host rocks of the deposit are a sequence of paragneiss and feldspathic quartzites which strike N 80o E and dip 32o south. The gneisses are irregularly mineralized with graphite and in places contain rich concentrations of the mineral. The associated quartzites are also graphitic. A road once led from the mine site to a small mill, about 800 metres north of the deposit. The mill is now in ruins.
The original operators produced graphite on a small scale between 1923 and 1930 but ceased operations due to the low unit price of graphite during the 1929 market crash. Moreover, it seems that the small-scale operation and the inefficient milling process known at that time may have led to the failure of the enterprise but not for lack of ore.
Geophysical surveys completed in the 1980s over the area identified a conductive anomaly outlining the graphite zone, which is 500 metres long and confirmed by the old 1922 trenches and pits in the immediate area of the historical mine.
An airborne geophysical survey covering a larger area will be conducted by Graphano in June/July of 2022.
New Graphite Claims
In addition to signing the Option Agreement for Standard, the Company has staked two sets of additional graphite claims, 5 km and 10 km south from the Lac Aux Bouleaux project, as part of the Company’s consolidation strategy. A total of 11 claims covering 600 hectares were staked and comprise the Dudley and Lac Vert-Bouthillier graphite showings.
The development of historical graphite deposits as well as new discoveries, all within trucking distance, should allow for resource consolidation to one processing centre at Lac Aux Bouleaux.
The scientific and technical content disclosed in this press release was reviewed and approved by Roger Dahn, B.Sc., P.Geo., a director of the Company and a “Qualified Person” as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
About Graphano Energy
Graphano Energy Ltd. is an exploration and development company that is focused on evaluating, acquiring and developing energy metals resources from exploration to production.
Graphite is one of the most in-demand technology minerals that is required for a green and sustainable world. The Company’s Lac Aux Bouleaux property, situated adjacent to Canada’s only producing graphite mine, in Quebec, Canada, has historically been an active area for natural graphite. With the demand for graphite growing in some of the most prominent and cutting-edge industries, such as lithium batteries in electric cars and other energy storage technologies, the Company is developing its project to meet the demands of the future.
On Behalf of the Board of Directors
Chief Executive Officer and Director
Neither 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.
Cautionary Note Regarding Forward-Looking Statements:
This news release contains certain “forward-looking information” and “forward-looking statements” (collectively “forward-looking statements”) within the meaning of applicable securities legislation. All statements, other than statements of historical fact, included herein, without limitation, relating to future operations – exploration, drilling and other activities of Graphano Energy – are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as “expects”, “anticipates”, “believes”, “intends”, “estimates”, “potential”, “possible”, and similar expressions, or statements that events, conditions, or results “will”, “may”, “could”, or” should” occur or be achieved. Forward-looking statements in this news release relate to, among other things, the Company’s exploration plans and the impact thereof. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by Graphano Energy, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements and the parties have made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation, the ability to complete proposed exploration work given the global COVID-19 pandemic, the results of exploration, continued availability of capital, and changes in general economic, market and business conditions. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these items. Graphano Energy does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by applicable securities laws. We seek safe harbour.