Amended: Alabama Graphite Announces Receipt of Conditional Approval to Listings on TSX Venture Exchange and Delisting from Canadian Securities Exchange and Reports Progress on Exploration Program
VANCOUVER, Canada / TNW-ACCESSWIRE / May 2, 2014 / Alabama Graphite Corp. (the "Company") (CSE: ALP) (OTC: ABGPF) (FRANKFURT: A1G WKN: A1J35M) (ISIN# CA0102931080) is pleased to announce that it has received conditional approval to list its common shares on the TSX Venture Exchange (the "TSXV"), and that it intends to voluntarily delist its common shares from the Canadian Securities Exchange (the "CSE"). The Company is in the process of delisting its common shares from the CSE and the shares will commence trading on the TSXV at market open on May 5, 2014. The Company's trading symbol "ALP" will remain the same.
The Company also announces that it has been actively advancing its Coosa Project in Alabama since the publication of its technical report on the project issued by Metal Mining Consultants Inc. and dated September 5, 2013 (the "Technical Report"). As part of the grant of conditional approval by the TSXV, the Company has been required to provide an update on the progress of its exploration program at the Coosa Project as detailed in the Technical Report. The Technical Report contained a recommended exploration program, the costs of which are set out below:
Original Exploration Program Costs as per NI 43-101 Technical Report
---------------------------------------------
| | |
|-------------------------------------------|
|Regional Exploration |$ |
|(Mapping and Surface |35,000 |
|Sampling) | |
|-------------------------------------------|
|Geophysics (EM Survey) |$ |
| |150,000 |
|-------------------------------------------|
|Earth Moving and Pad Construction|$ |
| |100,000 |
|-------------------------------------------|
|Exploration Drilling |$ |
| |600,000 |
|-------------------------------------------|
|Assays (Surface and Core Samples)|$ |
| |190,000 |
|-------------------------------------------|
|Environmental and Reclamation |$ |
| |75,000 |
|-------------------------------------------|
|Metallurgical Tests |$ |
| |300,000 |
|-------------------------------------------|
|Project Total ($ USD) |$ |
| | |
| |1,450,000|
---------------------------------------------
The Technical Report was revised on March 26, 2014 to better delineate the recommended exploration program into two phases, while keeping the aggregate cost of the exploration program the same. A copy of the revised Technical Report has been SEDAR filed with this news release.
The detailed breakdown of the two-phase program is outlined below:
Phase 1 Exploration Program Costs
--------------------------------------------------------------
| | |
|------------------------------------------------------------|
|Regional Exploration (Mapping and Surface Sampling)|$ |
| |35,000 |
|------------------------------------------------------------|
|Geophysics (EM Survey) |$ |
| |150,000 |
|------------------------------------------------------------|
|Assays (Surface Samples) |$ |
| |90,000 |
|------------------------------------------------------------|
|Pad Construction |$ |
| |30,000 |
|------------------------------------------------------------|
|Resource Definition Drilling (4,000 feet) |$ |
| |200,000 |
|------------------------------------------------------------|
|Assays (Core Samples) |$ |
| |30,000 |
|------------------------------------------------------------|
|Project Total ($ USD) |$ |
| |535,000 |
--------------------------------------------------------------
Phase 2 Exploration Program Costs
--------------------------------------------
| | |
|------------------------------------------|
|Earth Moving and Pad Construction|$ |
| |70,000 |
|------------------------------------------|
|Exploration Drilling (8,000 feet)|$ |
| |400,000 |
|------------------------------------------|
|Assays (Core Samples) |$ |
| |70,000 |
|------------------------------------------|
|Environmental and Reclamation |$ |
| |75,000 |
|------------------------------------------|
|Metallurgical Tests |$ |
| |300,000 |
|------------------------------------------|
|Project Total ($ USD) |$ |
| |915,000 |
--------------------------------------------
The total cost of Phase 1 & 2 will be US$1,450,000.
As of March 31, 2014, the Company has spent US$247,213 of the budget for the proposed program, some of which are categorized as Phase 1 program costs and some of which are categorized as Phase 2 program costs. The breakdown of the expenditures incurred and the work performed are as follows:
Phase 1 Expenditures incurred as of March 31, 2014
-----------------------------------------
| | |
|---------------------------------------|
|Regional Exploration |$ |
|(Mapping and Surface |31,500 |
|Sampling)1 | |
|---------------------------------------|
|Geophysics (EM Survey)2 |$ |
| | |
| |165,097 |
|---------------------------------------|
|Assays (Surface Samples)3 |$ |
| |14,849 |
|---------------------------------------|
|Metallurgical Tests4 |$ |
| |27,287 |
|---------------------------------------|
|Environmental and Reclamation5|$ |
| |8,480 |
|---------------------------------------|
|Project Total ($ USD) |$ |
| | |
| |247,213 |
-----------------------------------------
Notes:
1. Regional Exploration (Mapping and Surface Sampling) - Surface sampling has been actively conducted across the project area.
2. Geophysics (EM Survey) - A TDEM / Magnetometer / Radiometric airborne survey was completed in March 2014 by Prospectair Geosurveys and the final results have been reported by the Company.
3. Assays (Surface and Core Samples) - The aforementioned surface samples were analyzed by ActLabs of Ancaster, Ontario and the results have been reported by the Company and are summarized below.
4. Metallurgical Tests - Preliminary metallurgical tests on four samples have been completed. These tests were conducted at both SGS and ActLabs in Ontario. A microscopic analysis of in situ flakes was also conducted by RJ Lee Group. Additional samples are currently being processed by SGS.
5. Environmental and Reclamation - Reclamation work has been completed as required.
The Company will spend an additional US$287,787 to complete the Phase 1 work program.
The assay results from an initial round of 424 samples were reported in a news release dated March 3, 2014. The table below summarizes the results and provides the true width of continuous channel samples whose grade exceeded 3.0%Cg. In addition, 129 samples are currently being processed by ActLabs. An additional 120 samples are currently awaiting shipment to the lab for assaying.
--------------------------------------------------------
|Sample ID|Sample Width (feet)|True Width (feet)|C(g) %|
|------------------------------------------------------|
|CS-04 |35 |26.8 |3.01 |
|------------------------------------------------------|
|CS-49 |30 |23.0 |3.14 |
|------------------------------------------------------|
|CS-55 |25 |19.2 |2.97 |
|------------------------------------------------------|
|CS-67 |25 |19.2 |3.37 |
|------------------------------------------------------|
|CS-71 |25 |19.2 |3.62 |
|------------------------------------------------------|
|CS-82 |15 |11.5 |4.67 |
|------------------------------------------------------|
|CS-87 |30 |23.0 |3.27 |
|------------------------------------------------------|
|CS-88 |25 |19.2 |4.83 |
|------------------------------------------------------|
|CS-90 |30 |23.0 |5.28 |
|------------------------------------------------------|
|CS-99 |35 |26.8 |3.67 |
|------------------------------------------------------|
|CS-114 |30 |23.0 |3.26 |
|------------------------------------------------------|
|CS-126 |20 |15.3 |3.91 |
--------------------------------------------------------
The preliminary results of the airborne geophysical survey were reported in a news release dated April 8, 2014. The survey showed a strong EM response over the drill grid with good correlation with the known limits of mineralization. In addition, several areas showing strong EM responses with associated magnetic lows were identified and are currently the subject of further investigation.
No results from the metallurgical testing have been released to date due to the small number of samples processed. The Company has sent additional samples for metallurgical testing and will announce results once the data is received.
The steps required to complete phase one of the exploration program are as follows: to expand surface sampling and mapping into areas identified as high-priority by the airborne geophysical survey; to conduct ground geophysics over areas where surface sampling has indicated graphite as the conductor in the airborne EM survey; to prepare pads for a preliminary drilling program using a sonic drill; and to continue metallurgical testing of both the defined Coosa mineral resource estimate as well as new areas defined by sonic drilling.
Further to the press release issued by the Company on May 1, 2014 appointing Ron S. Roda as Chief Executive Officer, Corporate Secretary and Director, he has also been appointed a member of the audit committee.
Scott E. Wilson and Stuart Redwood, independent Qualified Persons for the Company, as defined by National Instrument 43-101, have reviewed and approved the contents of this press release.
About Alabama Graphite:
Alabama Graphite Corp., through its wholly-owned subsidiary, Alabama Graphite Company Inc., is a graphite exploration and development company whose flagship project "The Coosa Graphite Project" in Coosa County, Alabama is located in an area with significant historical production of crystalline flake graphite. The Company published an inaugural mineral resource estimate in July 2013 and is continuing to define the footprint of the "The Coosa Graphite Project" and to start work on the 100% owned "Hearst Graphite Property" in Northern Ontario. For further information and updates on the Company please visit www.alabamagraphite.com.
ALABAMA GRAPHITE CORP.
Ron S. Roda
President & Chief Executive Officer
(609) 785-1581
rroda@alabamagraphite.com
www.alabamagraphite.com
THE CANADIAN SECURITIES EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
Forward looking information
This release contains "forward-looking information" within the meaning of applicable Canadian securities legislation, including predictions, projections and forecasts. Forward-looking information include, but are not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion, growth of the Company's business, operations, plans and with respect to exploration results, the timing and success of exploration activities generally, permitting time lines, government regulation of exploration and mining operations, environmental risks, title disputes or claims, limitations on insurance coverage, timing and possible outcome of any pending litigation and timing and results of future resource estimates or future economic studies.
Often, but not always, forward-looking information can be identified by the use of words such as "plans", "planning", "planned", "expects" or "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate" or "belief" or describes a "goal" or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking information is based on a number of material factors and assumptions, including, the result of drilling and exploration activities, that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for exploration is available as scheduled and does not incur unforeseen break downs, that no labour shortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technical problems occur, and that laboratory and other related services are available and perform as contracted. Forward-looking information involves known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of graphite; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the company's publicly filed documents. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.
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