Focus Graphite Reports that Initial Locked Cycle Flotation Tests on Lac Tétépisca Mineralisation Achieve 92.7 % Graphite Recovery and Concentrate Grades of 96.2% Carbon for all Flake Sizes Combined
February 1st, 2017
For Immediate Release
FMS: TSX-VENTURE
Focus Graphite Reports that Initial Locked Cycle Flotation Tests on
Lac Tétépisca Mineralisation Achieve 92.7 % Graphite Recovery and
Concentrate Grades of 96.2% Carbon for all Flake Sizes Combined
OTTAWA – February 1st, 2017 -- Focus Graphite Inc. (FMS: TSX-V; OTCQX: FCSMF; FSE:
FKC) (“Focus” or the “Company”) is pleased to report initial Locked Cycle flotation Test1 (LCT)
results from its 100%-owned Lac Tétépisca Graphite Project (“the Project”) located southwest of
the Manicouagan reservoir in the Côte-Nord administrative region of north-eastern Québec. The
LCT was performed by SGS Canada Inc. (SGS) on a 155 kg Master composite graphite
mineralization sample. Further open circuit cleaner testing was conducted on six variability
graphite mineralization samples (total: 108 kg).
Highlights:
• The LCT produced an overall graphite recovery of 92.7% total Carbon2 (Ct)
• The average grades of the “jumbo” (+48 mesh) and “l arge” (-48/+80 mesh) flake
categories were 95.6% Ct and 95.0% Ct, respectively
• The “medium” sized flakes (-80/+100 mesh) graded 96.3% Ct
• The “fine” flake products (-100/+200 mesh) yielded an average grade of 97.7% Ct
• These initial test results indicate that all concentrate size fractions above 400 mesh have
a high carbon grade ranging from 95.0% Ct to 97.8% Ct. High carbon flake graphite
concentrates translate into reduced levels of impurities to be removed during the
purification process.
The principal objectives of th e scoping level metallurgical test program were to design a
conceptual flotation flowsheet that can upgrade the Lac Tétépisca graphite mineralization into a
concentrate grading at least 96% Ct while minimizing flake size degradation.
The conceptual flowsheet was developed using results from a series of 14 flotation tests and the
closed-circuit performance was evaluated in a LCT. The flotation test program was completed on
a 155 kg Master composite and six variability samples (total: 108 kg) originating from
representative Lac Tétépisca graphite mineralization. The LCT produced an overall graphite
recovery of 92.7% at a combined concentrate grade of 96.2% Ct.
Focus President and CEO Gary Economo said: “These initial Locked Cycle flotation test results
serve as an excellent starting point for future optimization of the conceptual Lac Tétépisca
concentrator process flow sheet”.
“Lac Tétépisca has the potential to meet our future supply obligations for graphite -based
polymers for the automotive and other industries, whereas our flagship Lac Knife project’s high
purity concentrate production is planned for clean technology, renewable energy markets t hat
require high quality coated spherical graphite," Mr. Economo added.
In 2014, Focus conducted a preliminary metallurgical characterization of a 10 kg composite
channel sample of graphite mineralization from the Lac Tétépisca project. The metallurgical test
work which was carried out at SGS in Lakefield, Ontario, achieved a carbon content averaging
94.7% Ct for all flake sizes above 200 mesh, including 97.7% Ct for +80 mesh flake - a quality
that is critical to the lithium ion battery market (refer to Focus news release dated October 20,
2014 available at www.focusgraphite.com and at www.sedar.com).
The flake size distribution in the concentrate that was generated in the LCT using the 2016
Master composite is presented in
Table 1. A total of 17.2% of the concentrate mass reported to the “jumbo” flake category (+48
mesh). The “large” flake category (-48/+80 mesh) contained 20.5% of the concentrate mass.
Another 7.9% of the mass reported to the “medium” flake size fraction (-80/+100 mesh) (Table
1).
Interestingly, the finer flake size distribution classes (+400/-100 mesh) also reported carbon
grades above 95% Ct.
Table 1: Lac Tétépisca concentrate flake size distribution and total carbon (Ct) grades.
Category Size Fraction
Mesh
Size Fraction Weight Assays Distribution
Microns % % Ct % Ct
Jumbo
+32 mesh +500 4.2 95.8 4.1
+48 mesh +300 13.0 95.6 12.9
Large +65 mesh +212 13.5 95.0 13.4
+80 mesh +180 7.0 95.0 6.9
Medium +100 mesh +150 7.9 96.3 7.9
Fine +150 mesh +106 13.0 97.8 13.2
+200 mesh +75 15.4 97.7 15.7
Very Fine
+325 mesh +45 15.8 96.7 15.9
+400 mesh +38 3.6 95.2 3.6
-400 mesh -38 6.6 92.9 6.4
Total: 100.0 100.0
A total of six variability composites ranging from low-grade disseminated material grading 3.81%
graphitic carbon2 (Cg) to high-grade massive mineralization grading 22.3% Cg produced
consistent metallurgical results when subjected to the developed flowsheet conditions.
The combined concentrate grades for the six variability samples ranged from 95.4% Ct to 97.8%
Ct with open circuit graphite recoveries of 84.9% to 91.6%.
The mass recovery into the “large” and “jumbo” flake categories for the six variability composites
ranged between 31.8% for the massive mineralization composite, to 62.0% for the low-grade
disseminated composite.
1 A Locked Cycle Test (LCT) is a repetitive batch flotation test conducted to assess
flow sheet design. It is the preferred method for arriving at a metallurgical projection
from laboratory testing. In a LCT the intermediate products are incorporated in the
following cycles, thus simulating a continuous flotation circuit on a laboratory scale.
2 All carbon analyses were performed by SGS Canada Inc. (“SGS”) and are reported
as total carbon (“Ct”). The analytical methods that were used to determine the
metallurgical results included total carbon analysis by Leco on the final concentrates.
Total carbon assays are for the higher graphite concentrate grades, whereas graphitic
carbon (“Cg”) assays are for drill core and it is a more accurate method when
graphitic carbon content is lower than approximately 50% Cg.
About SGS Metallurgical Services (Lakefield)
SGS Canada Inc. (SGS) is recognized as a world leader in the development of concentrator
flowsheet design and pilot plant testing programs. SGS’ Metallurgical Services division was
founded over half a century ago. Its metallurgists, hydro -metallurgists and chemical engineers
are experienced in all the major physical and chemical separation processes utilized in the
recovery of metals and minerals contained in resource properties around the world.
Qualified Person
The information pertaining to the metallurgical test program completed by SGS that is presented
in this news release has been reviewed and approved by Mr. Oliver Peters, M.Sc., P.Eng., MBA,
Consulting Metallurgist for SGS Canada Inc. and Principal Metallurgist of Metpro Management
Inc. Mr. Peters has extensive experience in the development of metallurgical processes and has
managed the majority of the graphite testing programs conducted at SGS in recent years.
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 relating to the
Lac Tétépisca project metallurgical test results.
About the Lac Tétépisca Graphite Project
Focus Graphite’s 100%-owned Lac Tétépisca Graphite Project consists of 87 contiguous map-
designated claims (“CDC”) covering 4,692.82 ha. The Project is located in the Southwest
Manicouagan reservoir area, 234 km north-northwest of Baie-Comeau, an industrial city located
where the Manicouagan River intersects the North shore of St. Lawrence River. The Project is
accessible year-round by logging roads that connect to Highway 389, which in turn connects to
Baie-Comeau.
Focus discovered graphitic mineralization at Lac Tétépisca as a result of prospecting and
trenching work conducted in 2012 and in 2013. In 2014, the Company drilled 16 shallow holes
along four fences spaced 200 m apart (total: 1,875 m). The drilling covered a 600 m strike length
section of a 1.5-km long electromagnetic (EM) conductor mapped by a combined magnetic
(MAG)-EM ground geophysical survey and now referred to as the “Manicouagan Ouest Graphitic
Corridor” (MOGC). Eleven (11) holes intersected significant graphitic mineralisation including
hole LT-14-04 which intersected 103.9 m (true thickness) grading 10.25% Cg (refer to Focus
news releases August 17, 2016 available at www.focusgraphite.com and at www.sedar.com).
In 2016, Focus drilled an additional 18 holes (total: 2,424 m) to test the continuity of the graphitic
mineralization within the MOGC with respect to the variability of graphitic carbon thickness and
grades. Fifteen (15) holes intersected significant graphitic mineralization with grades rang ing
from 5.6% Cg to 19.35% Cg over a minimum true thickness of 6.2 m. Hole LT-16-32 intersected
102.1 m (true thickness) grading 10.7% Cg (refer to Focus news releases dated January 20,
2017 available at www.focusgraphite.com and at www.sedar.com).
A map of the Lac Tétépisca project is available on the Company’s website at
www.focusgraphite.com.
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.
The Lac Knife project hosts a Measured and Indicated Mineral Resource* of 12.1 million tonnes
grading 14.64% Cg (447,000 tonnes Measured @ 21.45% Cg and 11,654,000 tonnes Indicated
@ 14.38% Cg) as natural flake graphite with an additional Inferred Mineral Resource* of 2.3
million tonnes grading 16.20% 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).
On May 27, 2014, the Company announced the potential for high value added sales in the Li-ion
battery sector following battery coin cell tests performed on Spherical Graphite ("SPG")
produced from the Lac Knife graphite concentrate. Testing measured the performance met rics
and confirmed Focus' capability to tailor lithium ion battery-anode-grade graphite and value
added products to meet the most stringent customer specifications.
On February 26, 2015, the Company announced the results from independent laboratory testing
that indicated Coated Spherical Graphite (“CSPG”) produced from Lac Knife concentrate
outperformed synthetic graphite anodes for use in lithium-ion batteries.
On November 25, 2015, the Company announced results from independent laboratory testing
that reported “zero loss” in long-term battery anode cycle testing of high purity CSPG produced
from Lac Knife concentrate.
On March 31, 2016, the Company announced the introduction of a high conductivity graphite
cathode material produced from expanded Lac Kni fe graphite and exhibiting twice the
conductivity of cathodes versus standard grades of synthetic and natural flake graphite used in
commercially available lithium-ion batteries.
On August 8, 2016, the Company announced it has successfully purified fine flake graphite -
sourced at its wholly owned Lac Knife, Québec deposit - from 95% to 99.99% purity using a
proprietary energy efficient purification process. Attaining a 99.99% purity level from fine
graphite flake is significant. Focus now has the technology to economically purify low value fine
flake graphite or, “fines” to a high value material needed for the production of lithium -ion
batteries.
On August 24, 2016, the Company released channel sampling results from its wholly-owned Lac
Tétépisca Nord graphite project. An 86.8 m long trench crosscut 67.2 m grading 6.75% Cg.
On November 21, 2016, the Company and Joint-Venture partner SOQUEM Inc. reported high
hydrometallurgical recoveries of rare earth elements (REE) from the Kwyjibo REE project. The
extraction rate from rare earth concentrate is approximately 90% for all REE within the
Magnetitite Mineralization Type (MM1). The relatively simple metallurgical flowsheet is a
distinctive feature of the Kwyjibo project among peer rare earth elements projects.
On January 25, 2017, the Company announced an updated Mineral Resource Estimate for its
Lac Knife flake graphite project. Measured and Indicated Mineral Resources increased by 26%
when reported at a cut-off of 3.0% Graphitic carbon (Cg) to 12.1 million tonnes grading 14.64%
Cg compared to the previous estimate of 9.6 million tonnes grading 14.77% Cg at the same cut-
off prepared in 2014.
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.
* 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 Mineral Reserves. The reference point for the Mineral Reserve Estimate is
the mill feed.
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 pr ice; (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 regul atory 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. A ccordingly,
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