Focus Graphite and SOQUEM Launch Preliminary Economic Assessment of their Kwyjibo Rare Earth Element Project in Northern Québec – Met-Chem Selected to Conduct Study
October 2, 2017
For Immediate Release
FMS: TSX-VENTURE
Focus Graphite and SOQUEM Launch Preliminary Economic
Assessment of their Kwyjibo Rare Earth Element Project in Northern
Québec – Met-Chem Selected to Conduct Study
OTTAWA – October 2, 2017 -- Focus Graphite Inc. (FMS: TSX-V; OTCQX: FCSMF; FSE: FKC)
(“Focus” or the “Company”) and partner SOQUEM Inc. ("SOQUEM") are pleased to announce
that they have engaged Met -Chem of Montréal, a division of DRA Americas Inc (“Met-
Chem/DRA”), to undertake a Preliminary Economic Assessment (PEA) of the ir Kwyjibo
Polymetallic-Rare Earth Elements (REE) – Copper-Iron-Phosphate project (“Kwyjibo” or the
“Project”), located in the Côte-Nord administrative district of northeastern Québec.
Met-Chem/DRA is a globally recognized expert in mine and infrastructure design, including
construction and mine operations, resource mapping, metallurgy, cost assessment, process
design and administration. They have direct experience in the REE sector having prepared: pre-
feasibility studies (PFS) on the Zandkopsdrift and Steenkampskraal REE projects in South Africa
and on the Browns Range Project in Australia.
On behalf of the Joint Venture partners, Focus Graphite President and Chief Executive Officer
Gary Economo said: “We are pleased to have Met-Chem/DRA leading the PEA on Kwyjibo. Met-
Chem/DRA is a highly skilled and reputable engineering firm with individual team members that
have a wealth of professional experience on a variety of projects throughout the world, including
REE projects.”
Mr. Economo said the decision to undertake the PEA study coincided with a number of
encouraging market factors, chief among them, a significant rise in market prices during the first
half of 2017 for neodymium and praseodymium.
“And, with Germany, France and the United Kingdom announcing plans to end the production of
cars equipped with combustion engines starting in 2030, conditions appear to be favourable for
a resurgence in investment momentum, especially for non-Chinese REE explorers,” Mr.
Economo said.
“The recent resurgence in rare earth elements prices also reflects growing demand as a result of
the Paris Agreement on climate action globally, but more in particular China’s REE production
cuts as it rationalizes its REE mining industry – in support of its policy to electrify China’s
transportation and other industries,” said Mr. Economo.
According to the Nikkei Asian Review, China, which produces some 85% of the world’s supply of
rare earths, is looking to curtail supply by enforcing environmental rules and targeting illegal
REE mining operations.
Rare earth materials are critical for the construction of solar photovoltaics, wind electricity
generators and energy storage technologies, among other industrial applications.
The Roskill Consulting Group reported in an August 3, 2017 rare earths market update, “ the
increase in certain rare earth element (REE) prices in H1 2017, particularly for neodymium (Nd)
and praseodymium (Pr) products, has brought renewed interest to the rare earths industry after
prices stagnated in 2 016. China FOB Nd oxide and Pr oxide prices increased 20% to
US$48.4/kg REO and 21% to US$61.5/kg REO respectively between January and July 2017,
whilst Chinese domestic prices for the same products increased by 23% and 24% during the
same period.” (This update is available on the Roskill website at https://roskill.com/news/rare-
earths/)
And, the World Bank, in its June, 2017 Study entitled: “The Growing Role of Minerals and Metals
for a Low Carbon Future” indicates the universal focus towards slowing global warming creates
opportunities for nations to explore and exploit potential REE resources.
“It is striking that aside from China, Brazil, India, and Malaysia there are no recorded production,
reserve, or resource data for rare-earth metals available from any developing country regions.
Although these critical metals can be found in these areas, no concerted efforts have been
undertaken to accurately map their existence,” the report said.
Mr. Economo said the PEA Study undertaking with Met -Chem/DRA, when completed, and, if
positive, could lead to further investigation of the Kwyjibo Project’s feasibility as a potentially new
North American rare earths source.
Preliminary Economic Assessment of the Kwyjibo project
The PEA will be based on promising hydrometallurgical test results from lab-scale work being
conducted at Hazen Research Inc. of Golden, Colorado. On November 21, 2016, Focus and
SOQUEM announced results from the 2014 -2015 chemical leaching test work program
conducted on two composite drill core samples from the Magnetite and Lower Breccia zones of
the Josette horizon. The tests and subsequent purification steps are supervised by Mr. Eric
Larochelle, P. Eng., a metallurgical consultant part of Met-Chem/DRA’s team of experts.
Highlights of that test work included:
• A distinct and relatively simple metallurgical flowsheet when compared with those of peer rare
earth element projects
• A very high leach extraction rate of approximately 90% from rare earth concentrate for all rare
earth elements for the massive Magnetite Mineralization Type (“MM1”)
Met-Chem/DRA commenced work on the PEA on August 1, with a view to completion of its
report by late 2017 or early 2018.
Qualified Persons
Mr. Daniel M. Gagnon, P.Eng, FCIM, Senior Vice-President Mining, Geology, Met-Chem/DRA, a
Qualified Person under National Instrument 43 -101 - Standards of Disclosure for Mineral
Projects has reviewed and approved the technical content of this news release.
Mr. Eric Larochelle, P.Eng., President of SMH Process Innovation, an independent consultant to
Met-Chem/DRA responsible for the hydrometallurgical program and a Qualified Person under
National Instrument 43-101 - Standards of Disclosure for Mineral Projects has read and
approved the hydrometallurgical technical information contained in this news release.
Mr. Marc-André Bernier, M.Sc, P.Geo (Québec and Ontario), a Director of the Company and a
Qualified Person under National Instrument 43 -101 - Standards of Disclosure for Mineral
Projects, has reviewed and approved the non-technical content of this news release.
About the Kwyjibo Project
The Kwyjibo polymetallic project, totalling 118 claims and covering 6,278 ha, is located 125 km
northeast of the port city of Sept-Îles, in the Côte-Nord administrative district of Québec. The
project is also located 25 km east of the Québec North Shore and Labrador railway line and is
accessible by air from Sept-Îles.
Kwyjibo is located in the Grenville Geological Province of north -eastern Québec, and hosts
Meso-proterozoic poly-metallic iron (Fe), copper (Cu), rare-earth elements (REE), gold (Au))
mineralization which is considered to be one of the best iron oxide copper -gold (IOCG)
exploration targets in Québec. The mineralization has already been traced over a distance of at
least 4 km. The Kwijibo property is subject to a NSR royalty of 1.5% payable to Compagnie
Minière IOC Inc.
About SOQUEM Inc.
SOQUEM, a subsidiary of Investissement Québec, is a leading player in mineral exploration in
Québec. Its mission is to explore, discover and develop mining properties in Québec. SOQUEM
has participated in more than 350 exploration projects and contributed to major discoveries of
gold, diamonds, lithium and other minerals.
About Focus Graphite
Focus Graphite Inc. is an advanced exploration company with an objective of producing graphite
concentrate at its wholly-owned Lac Knife flake graphite deposit located 27 km south of
Fermont, Québec. In a second stage, to meet Quebec stakeholder interests of transformation
within the province and to add shareholder value, Focus is evaluating the feasibility of producing
value added graphite products including battery-grade spherical graphite.
Focus Graphite is a technology -oriented graphite development company with a vision for
building long-term, sustainable shareholder value. Focus also holds a significant equity position
in graphene applications developer Grafoid Inc.
For more information about Focus Graphite, please visit www.focusgraphite.com.
Forward Looking Statement
This News 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 "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations 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 subject to known and unknown risks, unc ertainties
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) the risks associated with
entering into joint ventures; (vii) fluctuations in commodity prices; (viii) the risks associated with
uninsurable risks arising during the course of exploration, development and production; (ix)
competition faced by the Company in securing experienced personnel and financing; (x) access
to adequate infrastructure to support mining, processing, development and exploration activities;
(xi) the risks associated with changes in the mining regulatory regime governing the Company;
(xii) the risks associated with the various environmental regulations the Company is subject to;
(xiii) risks related to regulatory and permitting delays; (xiv) risks related to potential conflicts of
interest; (xv) the reliance on key personnel; (xvi) liquidity risks; and (xvii) the risk of potential
dilution through the issue of common shares. Forward -looking information is based on
assumptions management believes to be reasonable at the time such statemen ts are made,
including but not limited to, continued exploration activities, no material adverse change in metal
prices, exploration and development plans proceeding in accordance with plans and such plans
achieving their stated expected outcomes, receipt of required regulatory approvals, 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 made as of the date of this News Release, and the Company does not undertake
to update such forward-looking information except in accordance with applicable securities laws.
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 accuracy of this
release.
Contact
Focus Graphite Inc.
Mr. Gary Economo
Chief Executive Officer
+1 613-241-4040
www.focusgraphite.com