Focus Graphite Reports an Adjustment to the Measured and Indicated Mineral Resources at its Lac Knife Flake Graphite Project, Québec, Resulting in a 42% Increase Relative to 2014 Estimate
March 9, 2017
For Immediate Release
FMS: TSX-VENTURE
Focus Graphite Reports an Adjustment to the Measured and Indicated Mineral
Resources at its Lac Knife Flake Graphite Project, Québec, Resulting in a 42%
Increase Relative to 2014 Estimate
OTTAWA, ONTARIO--(Marketwired - March 9, 2017) - Focus Graphite Inc. (TSX
VENTURE:FMS) (OTCQX:FCSMF) (FRANKFURT:FKC) ("Focus" or the "Company") announces
a rectification to the Measured and Indicated mineral resources statement released by the
Company on January 24, 2017(1) for its 100%-owned Lac Knife flake graphite project, located
27 km south of Fermont, in the Côte-Nord administrative region of northeastern Québec.
On February 5, 2017, Focus was informed by AGP Mining Consultants that a correction was
applied to the classification model which affected the south portion of the resource estimate
announced on January 24, 2017. The correction only affected the internal distribution of the
Inferred and Indicated resources in the area covered by the latest infill drilling. The grade
estimation was not affected by the change.
The 2014 infill drilling program successfully upgraded Inferred resources to the Indicated and
Measured categories. The upgraded resources are located to the south and outside of the open
pit shell that was used for the 2014 Lac Knife project feasibility study(2) ("FEAS"). In the current
FEAS mine plan, any additional tonnage located outside of the FEAS open pit shell design
would only be mined and processed after the 25-year mine life.
Following the adjustment made by AGP Mining Consultants, using a 3.0% graphitic carbon (Cg)
cut-off, the revised Measured and Indicated resources at Lac Knife now stand at 13.56 million
tonnes grading 14.95% Cg (Table 1). This represents a 42% increase in Measured and
Indicated resources compared to the 9.576 million tonnes grading 14.77% Cg reported in the
2014 FEAS (Table 2). The adjustment also translates into a 43% increase in graphite tonnes,
from 1.414 million tonnes to 2.027 million tonnes (Table 1). Additionally, there are 840,000
tonnes of Inferred resources grading 13.90% Cg (Table 1).
Table 1. Revised Lac Knife Mineral Resource Estimate @ 3.0% Cg cut-off
Tonnage Cg Contained Graphite
(t) (%) (t)
Measured 447 000 21.45 96 000
Indicated 13 112 000 14.73 1 931 000
Measured + Indicated 13 560 000 14.95 2 027 000
Inferred 840 000 13.90 117 000
• Mineral Resources are not Mineral Reserves and do not have demonstrated economic
viability.
• There is no certainty that all or any part of the Mineral Resources will be converted into
Mineral Reserves.
• The rounding of tonnes as required by NI 43-101 reporting guidelines may result in
apparent differences between tonnes, grade and contained graphite.
Table 2: Revised Sensitivity to cut-off change and comparison to the 2014 feasibility
study
Updated
Mineral Resource
Estimate
(3.0% Cg Cut-off base
case)
2014
Mineral Resource
Estimate
(3.0% Cg Cut-off
base case)
Percent Change
Cut-
off
Tonnes Cg
(%)
Cg
Tonnes
Tonnes Cg
(%)
Cg
Tonnes
Tonnage Graphite
Measured
>
10.0
440
000
21.66 95 000 428
000
23.81 102
000 3% -7%
> 5.0
447
000
21.45 96 000 432
000
23.66 102
000 3% -6%
> 3.0
447
000
21.45 96 000 432
000
23.66 102
000 3% -6%
> 2.0
447
000
21.45 96 000 432
000
23.66 102
000 3% -6%
Indicated
>
10.0
11 227
000
15.86 1 781 000 7 466
000
15.77 1 177
000 50% 51%
> 5.0
13 021
000
14.80 1 927 000 9 065
000
14.44 1 309
000 44% 47%
> 3.0
13 112
000
14.73 1 931 000 9 144
000
14.35 1 312
000 43% 47%
> 2.0
13 114
000
14.72 1 931 000 9 146
000
14.35 1 312
000 43% 47%
Measured +
Indicated
>
10.0
11 667
000
16.08 1 876 000 7 894
000
16.21 1 279
000 48% 47%
> 5.0
13 468
000
15.02 2 023 000 9 497
000
14.86 1 411
000 42% 43%
> 3.0
13 560
000
14.95 2 027 000 9 576
000
14.77 1 414
000 42% 43%
> 2.0
13 561
000
14.95 2 027 000 9 578
000
14.77 1 415
000 42% 43%
Inferred
>
10.0
698
000
15.10 105 000 2 196
000
15.81 347
000 -68% -70%
> 5.0
832
000
14.00 116 000 2 941
000
13.75 404
000 -72% -71%
> 3.0
840
000
13.90 117 000 3 102
000
13.25 411
000 -73% -72%
> 2.0
840
000
13.90 117 000 3 116
000
13.20 411
000 -73% -72%
• Mineral Resources are not Mineral Reserves and do not have demonstrated economic
viability.
• There is no certainty that all or any part of the Mineral Resources will be converted into
Mineral Reserves.
• The rounding of tonnes as required by NI43-101 reporting guidelines may result in
apparent differences between tonnes, grade and contained graphite.
Compared to the model announced on January 24, 2017, the revised model improves the
Measured and Indicated resources tonnage by 12% and it contains 14% more graphite tonnes
(Table 3). The improvement to the Measured and Indicated resources category is offset by a
reduction in the Inferred category amounting to 63% in tonnages and 69% in graphite tonnes.
Table 3: Revised model compared to the previous announcement on January 24, 2017
March 2nd, 2017
Revised resource estimate
(3.0% Cut-off)
January 24th, 2017
Resource estimate
(3.0% Cut-off)
Tonnage Cg Graphite Tonnage Cg Graphite Percent
change -
Tonnage
Percent
change -
Contained
Graphite (t) (%) (t) (t) (%) (t)
Measured 447,000 21.45 96,000 447,000 21.45 96,000 0% 0%
Indicated 13,112,000 14.73 1,931,000 11,654,000 14.38 1,675,000 13% 15%
Measured
+ Indicated 13,560,000 14.95 2,027,000 12,101,000 14.64 1,771,000 12% 14%
Inferred 840,000 13.90 117,000 2,299,000 16.20 372,000 -63% -69%
While the grade for the estimated blocks was not affected by the change, there is an apparent
minor variation to the average grade of the combined Measured and Indicated categories at the
3% cut-off due to the redistribution of the higher grade Inferred blocks that were converted to
Indicated resources.
The updated mineral resource is based on 231 core drill holes totalling 22,505 metres of historic
and recent drilling from 2014. This includes 149 surface drill holes totalling 12,041 metres
completed since 2010. Mineral Resources have been reported within a constraining pit shell at a
cut-off grade of 3.0% Cg.
Details on the Mineral Resource Estimation procedures are given in the Company's news
release dated January 24th, 2017, available at www.focusgraphite.com and at www.sedar.com.
Lac Knife Project
The Lac Knife project comprises 57 map-designated claims covering 2,986.31 ha located in
Esmanville Township (NTS map sheet 23B/11), 27 km south-southwest of the iron-mining town
of Fermont, in the Côte-Nord administrative region of Québec. Focus acquired a 100% interest
in the project in October 2010. A map showing the location of the Lac Knife project is available
on the company's website at www.focusgraphite.com.
The mineralization at Lac Knife is hosted in biotite-quartz-feldspar paragneiss and schist of the
Nault Formation, in association with iron formations of the Wabush Formation. These are
equivalent to the lower Proterozoic Labrador Trough rocks affected by the late Proterozoic
Grenvillian orogeny. High grade metamorphism and folding associated with the Grenvillian
orogeny has resulted in the formation of important concentrations of graphite dominated by
value-enhanced large flakes.
The Lac Knife project hosts a Measured and Indicated mineral resource* of 13.56 million tonnes
grading 14.95% Cg (447,000 tonnes Measured @ 21.45% Cg and 13,112,000 tonnes Indicated
@ 14.73% Cg) as natural flake graphite with an additional Inferred mineral resource* of 840,000
tonnes grading 13.90% Cg. Focus' goal is to assume an industry leadership position by
becoming a low-cost producer of technology-grade graphite concentrate.
The Feasibility Study filed with SEDAR (www.sedar.com) on August 8, 2014 for the Lac Knife
Project indicates the project is economically viable and has the potential to become a low-cost
graphite concentrate producer based on 7.86 million tonnes of Proven and Probable Mineral
Reserves** grading 15.13% Cg included in the Mineral Resource (429,000 tonnes Proven @
23.61% Cg and 7,428,000 tonnes Probable @ 14.64% Cg).
* Mineral resources are not mineral reserves and do not have demonstrated economic
viability.
** The Measured and Indicated Mineral Resources are inclusive of those Mineral
Resources modified to produce the Mineral Reserve. The reference point for the
Mineral Reserve Estimate is the mill feed.
Qualified Persons
Pierre Desautels, P.Geo. Principal Resource Geologist of AGP Mining Consultants Inc. Qualified
Person under NI 43-101 who is independent of the Company, has review and authorized the
release of the mineral resource estimates presented herein.
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 technical content of this news release.
About Focus Graphite
Focus Graphite Inc. is an advanced exploration and mining 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 mining 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, 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) 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 statements 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.
(1) Refer to Focus news release dated January 24, 2017, available at www.focusgraphite.com
and at www.sedar.com.
(2) Refer to Focus news releases dated June 25th and August 8, 2014, available at
www.focusgraphite.com and at www.sedar.com
Contact Information
Focus Graphite Inc.
Mr. Gary Economo
Chief Executive Officer
+1 613-241-4040
www.focusgraphite.com