Alabama Graphite Reports Higher Grade, Near Surface (oxidized zone) Intercepts within New Geophysical Targets at its Coosa Project, Alabama, USA
Vancouver, BC / TNW-ACCESSWIRE / September 16, 2014 / Alabama Graphite Corp. (the "Company") (TSX-V:ALP) (OTCQX:ABGPF) (FRANKFURT: 1AG WKN: A1J35M) (ISIN# CA0102931080) is pleased to report assay results from the summer 2014 sonic drilling program at its Coosa Graphite Project in Alabama, USA. Sonic drilling was chosen because of its ability to drill on established roads without extensive pad preparation as well as accommodating the Company's desire to economically and preferentially test only the upper oxidized portions (0-65ft depth) of individual targets identified by the airborne survey completed in May, 2014. The Company's existing NI 43-101 resource estimate identifies an indicated resource of 38 million tons at 2.60% Cg, the largest indicated flake graphite resource in the USA, and an inferred resource of 27 million tons at 2.87% Cg. The assay results show two of the new anomalies with intercept grades of 3.27% Cg and 3.65% Cg. The results also indicate that the Company's existing inferred resource can be upgraded and could potentially increase the overall grade of the resource.
The sonic drill program consisted of 24 holes totaling 1303ft and was designed to accomplish the following objectives:
1) to conduct a preliminary evaluation of new exploration targets, east and/or south of the previously defined resource, outlined by the airborne geophysical (TDEM) survey conducted earlier this year (eighteen holes);
2) to explore for mineral continuity within and beyond the defined mineral resource in the previously drilled northern strat section to evaluate the oxidized portion not evaluated by core drilling (five holes); and
3) to explore for mineral extension to the Southeast of the grid where the existing resource is open (one hole: AGC-14-K03S).
A surface casing was left in place in each of the holes to allow for deepening with a standard core drill, if desired.
Highlights from Assay Results:
-
-Holes AGC-14-10S and AGC-14-11S intercepted weathered graphitic schist at the surface to depths of 55' and 60' with average grades of C(g) = 3.65% and 3.27%, respectively, in new target areas identified by both geophysics and channel sampling.
-Holes AGC-12S, and AGC-14-13S intercepted weathered graphitic schist at the surface to depths of 55' and 53' with average grades of C(g) = 2.84% and 2.89% respectively, within the inferred resource area of the 2012 Northern Strat Section.
Table 1- Complete drill results from the sonic drilling are as follows:
-------------------------------------------------------
|Drill Hole |TD (ft)|C(g)%|Significant Intercept|C(g)%|
|-----------------------------------------------------|
|AGC-14-01S |65’ |2.18 |10 to 30’ |2.73 |
|-----------------------------------------------------|
|AGC-14-02S |55’ |2.36 |15 to 55’ |3.00 |
|-----------------------------------------------------|
|AGC-14-03S |60’ |2.56 |0 to 20’ |2.81 |
|-----------------------------------------------------|
|AGC-14-04S |60’ |1.60 | | |
|-----------------------------------------------------|
|AGC-14-05S |60’ |1.47 | | |
|-----------------------------------------------------|
|AGC-14-06S |58’ |2.27 |15 to 58’ |2.54 |
|-----------------------------------------------------|
|AGC-14-07S |60’ |2.41 |30 to 50’ |3.06 |
|-----------------------------------------------------|
|AGC-14-08S |55’ |2.58 |10 to 35’ |3.17 |
|-----------------------------------------------------|
|AGC-14-09S |60’ |0.22 | | |
|-----------------------------------------------------|
|AGC-14-10S |55’ |3.65 |0 to 20’ |4.06 |
|-----------------------------------------------------|
|AGC-14-11S |60’ |3.27 |10 to 40’ |3.93 |
|-----------------------------------------------------|
|AGC-14-12S |53’ |2.65 |10 to 20’ |4.22 |
|-----------------------------------------------------|
|AGC-14-13S |53’ |2.89 |10 to 35’ |4.02 |
|-----------------------------------------------------|
|AGC-14-14S |55’ |2.31 |0 to 35’ |2.90 |
|-----------------------------------------------------|
|AGC-14-15S |57’ |1.50 | | |
|-----------------------------------------------------|
|AGC-14-16S |55’ |1.96 |30 to 55’ |3.10 |
|-----------------------------------------------------|
|AGC-14-17S |50’ |1.34 | | |
|-----------------------------------------------------|
|AGC-14-18S |45’ |2.30 |10 to 25’ |2.72 |
|-----------------------------------------------------|
|AGC-14-19S |25’ |0.18 | | |
|-----------------------------------------------------|
|AGC-14-20S |45’ |2.93 |10 to 45’ |3.04 |
|-----------------------------------------------------|
|AGC-14-21S |65’ |2.26 |40 to 55’ |2.60 |
|-----------------------------------------------------|
|AGC-10S |55’ |2.70 |25 to 55’ |3.67 |
|-----------------------------------------------------|
|AGC-12S |55’ |2.84 |25 to 50’ |3.66 |
|-----------------------------------------------------|
|AGC-14-K03S|47’ |2.47 |15 to 47’ |2.94 |
-------------------------------------------------------
A map showing the resource grid and the new drill hole locations can be found on the Company's website at http://alabamagraphite.com/drillholelocations.pdf.
"We are encouraged with the results of the sonic drill program," stated Dr. Douglas Oliver, VP of Exploration. "The higher average grades seen in several new targets are worthy of follow-up testing and drilling. Based on the sonic drill results from both the northern strat section and to the southeast of the grid, we have the potential to expand the footprint of the existing oxidized resource. Coupled with the unique low work-hardness index of the oxidized zone and the Coosa Project's proximity to infrastructure, increases to the average grade of the resource are anticipated to have a positive impact on our Coosa project's economics. In particular, we look forward to initiating a PEA later this year where we can quantify the CAPEX and OPEX advantages of the Coosa Project compared to other North American graphite deposits."
The results of the sonic drill program will be used to guide future exploration to occur this year, including (1) an infill-drilling program of the inferred resource area, and (2) further testing of the new target areas that will include both drilling and trenching in the "hearts" of the newly found geophysical anomalies. The sonic holes just completed were mostly located along the peripheries and/or along strike of the geophysical targets where road access was already available, but not necessarily in the best location based on the geophysics results warranting immediate further exploration to help identify the most optimal material on the property.
Rick Keevil, P. Geo., a Director of the Company and VP of Project Development, who is a Qualified Person as defined by National Instrument 43-101, has reviewed the contents of this press release.
Alabama Graphite Corp.'s mission is to become one of the greenest graphite producers in the world. The Company, through its wholly-owned subsidiary, Alabama Graphite Company Inc., is conducting exploration and development on its flagship project "The Coosa Graphite Project" in Coosa County, Alabama, USA. The project encompasses over 40,000 acres and is located in an area with significant historical production of crystalline flake graphite. The Coosa Graphite project is 100% owned by Alabama Graphite and on private land. The Company's property has in place critical infrastructure, is within close proximity to transportation routes and a hospitable climate allowing for year-round production and delivery. The Company published an inaugural mineral resource estimate in July 2013, which was revised in March 2014 and is continuing to define the footprint of the "The Coosa Graphite Project" and will look 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.
Ron S. Roda
President & Chief Executive Officer
(609) 785-1581
rroda@alabamagraphite.com
www.alabamagraphite.com
Disclaimer for Forward-Looking Information
This press release contains forward-looking information under applicable Canadian securities laws ("forward-looking statements") that are based on the beliefs of management and reflect Alabama Graphite Corp.'s current expectations. When used in this press release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements. Such statements reflect the current view of Alabama Graphite Corp. with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements.
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among other things, 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. Forward-looking statements are also based on a number of assumptions, including 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 breakdowns, 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 statements are made based on management's beliefs, estimates and opinions on the date that statements are made and Alabama Graphite Corp. undertakes no obligation to update forward-looking statements (unless required by law) if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.
Alabama Graphite Corp. cautions that the foregoing list of material factors and assumptions are not exhaustive. When relying on Alabama Graphite Corp. forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and assumptions and other uncertainties and potential events. Alabama Graphite Corp. has also assumed that the material factors and assumptions will not cause any forward-looking statements to differ materially from actual results or events. However, the list of these factors and assumptions is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
Copyright (c) 2014 TheNewswire - All rights reserved.
