SRG Increases Mineral Resource Estimate for its Lola Graphite Project by 54% - Graphitic carbon content in Measured and Indicated Resources increase by 201%
SRG Increases Mineral Resource Estimate for
its Lola Graphite Project by 54% - Graphitic
carbon content in Measured and Indicated
Resources increase by 201%
MONTREAL
,
June 18, 2018
/CNW Telbec/ -
SRG Graphite Inc.
(TSXV: SRG) ("SRG" or the
"Company") is pleased to report an updated mineral resource estimate for its 100%-owned Lola
graphite deposit located in the Republic of
Guinea
(the "2018 Mineral Resource Estimate"). The
2018 Mineral Resource Estimate represents an increase of 54% of In-situ Graphitic Carbon ('Cg') at
a 3% 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
224,118t to 676,900t of Cg content at a 3% cut-off-grade, an increase of 201%.
Figure 1: Map of deposit with depicted drilling program and resource classification (CNW
Group/SRG Graphite)
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% graphitic carbon 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.
Table 1: 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 M&I
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 M&I
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 M&I
5.62
7.43
417,500
Inferred
1.18
7.54
88,700
Notes:
1)
CIM definitions (May 10, 2014) observed for classification of mineral resources.
2)
Block bulk density interpolated from specific gravity measurements taken from core samples.
3)
Resources are constrained by a Lersch Grossman (LG) optimized pit shell using MineSight software.
4)
Pit shell defined using 30-degree pit slope, $1,300/t of concentrate (94.6% Cg grade, 79.25% Cg plant recovery), $2.00/t mining costs, $10.00/t processing costs, and
$3.50/t G&A and $175/t of concentrate for transportation costs.
5)
Mineral resources are not mineral reserves and have no demonstrated economic viability. The estimate of mineral resources may be materially affected by mining,
processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors ("Modifying Factors").
6)
Numbers may not add due to rounding.
7)
Effective Date of Resource estimate is June 14
th
, 2018.
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.
For additional information, please visit SRG's website at
www.srggraphite.com
.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the
TSXV) 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, including references to the plans and project of the Company such as
proceeding with production at the Company's Lola Project, proceeding with exploration activities on
its permits including Lola and Gogota. Generally, such forward-looking information can be identified
by the use of forward-looking terminology such as "potential", "high-potential", "expected",
"optimistic", "looking forward", "moving forward", or variations of such words and phrases or state
that certain actions, events or results "may", "could", "would" or "might". 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)
volatile stock price; (ii) the general global markets and economic conditions; (iii) the possibility of
write-downs and impairments; (iv) the risk associated with exploration, development and operations
of mineral deposits; (v) the risk associated with establishing title to mineral properties and assets;
(vi) fluctuations in commodity prices; (vii) the risks associated with uninsurable risks arising during
the course of exploration, development and production; (viii) competition faced by the issuer in
securing purchasers, off-taker markets, clients and experienced personnel and financing; (ix) access
to adequate infrastructure to support mining, processing, development and exploration activities; *
the risks associated with changes in the mining regulatory regime governing the issuer; (xi) the risks
associated with the various environmental regulations the issuer is subject to; (xii) risks related to
regulatory and permitting delays; (xiii) risks related to potential conflicts of interest; (xiv) the reliance
on key personnel; (xv) liquidity risks; (xvi) the risk of litigation; and (xvii) risk management.
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, no
material adverse change in metal prices, exploration and development plans to proceed in
accordance with plans and such plans to achieve their stated expected outcomes, receipt of
required regulatory approval, and such other assumptions and factors as set out herein. 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.
SOURCE
SRG Graphite
View original content with multimedia:
http://www.newswire.ca/en/releases/archive/June2018/18/c4786.html
%SEDAR: 00008697E
For further information:
Benoit La Salle, FCPA, FCA, MBA, Executive Chairman, SRG Graphite
Inc., Tel: +1 (514) 951-4411, Email: [email protected]; Ugo Landry-Tolszczuk, P.Eng,
CFA, President & COO, SRG Graphite Inc., Tel: +1 (514) 679-4196, Email:
CO: SRG Graphite
CNW 07:00e 18-JUN-18