September 25,
2013 - Calgary, Alberta ?
Graphite One Resources Inc. (GPH: TSX-V, GPHOF: OTCQX)
("Graphite One" or the "Company") is pleased to announce that Kin
Communications Inc. ("Kin") has been engaged to provide investor
relations services to the Company.
Kin
Communications is one of Canada's leading full-service investor
relations firms specialized in the resource industry. Kin has a
proven track record of generating interest in their clients,
building an active shareholder base, and solidifying communications
that differentiates clients from their peers. Having worked with
several of the TSX's top performers, Kin will assist Graphite One
in increasing public awareness by managing the Company's corporate
communications, marketing endeavors, and ongoing engagement with
shareholders, finance professionals, and media contacts. For more
information, please visit www.kincommunications.com.
Kin will be
paid a monthly fee of $8,000 for an initial term of 12 months and
will be granted 600,000 stock options of the Company, exercisable
at $0.175 cents per share. The options will vest at a rate of 25%
per quarter from the date of the grant and will be exercisable for
a period of 5 years. The Agreement and the grant of options are
subject to regulatory approval. KIN Communications and its
principals collectively own 350,000 shares and 350,000 warrants of
Graphite One.
The Graphite Market
China currently produces approximately 70% of the world?s graphite
(world production is approximately 1,100,000 tonnes of which
400,000 is flake graphite) and has recently restricted exports by
instituting an export tax. As well, the Chinese government
has banned any new graphite plants and imposed strict environmental
regulations on existing plants in Qingdao. A state owned amorphous graphite
monopoly has been formed which will consolidate 210 amorphous
graphite mines down to 20 and will reduce production capacity from
600,000 to 510,000 tonnes per year. The implementation of these new
rules and standards will make graphite mines much more difficult to
build and/or operate in China.
Recently, South Graphite, which was formed in 2011 to consolidate
all the amorphous graphite resources in Hunan, China (which is the
world?s largest graphite producer) and has a total production
capacity of approximately 200,000 tonnes per annum.
Graphite is
an allotrope of carbon along with diamonds and coal. Graphite is the best known
conductor of heat and electricity. Graphite and graphite powder are
valued in industrial applications for their self-lubricating and
dry lubricating properties. It maintains its strength and
stability to temperatures in excess of 3,000?C and is resistant to
chemical attack.
Graphite demand was historically driven by the steel and automotive
industries. Due to the
industrialization of BRIC (Brazil, Russia, India, China) economies,
Graphite demand has steadily increased by 5% per annum since
2000. Global graphite
demand is growing rapidly and is expected to continue based on new
applications and green technologies, including but not limited to:
hybrid-electric vehicles (HEVs); plug-in hybrid-electric vehicles
(PHEVs); battery-electric vehicles (BEVs); fuel cells; Lithium-Ion
Batteries; Pebble Bed Nuclear Reactors; lubricants and
Graphene.
As global
demand grows, graphite prices have increased substantially, more
than doubling over the past three years.
Both the European Union and the United States have declared
graphite a supply critical mineral.
About Graphite Creek
The Graphite Creek Property comprises 129 claims totaling 6,799
hectares on the Seward Peninsula of Alaska, 65 kilometres north of
a deep sea port at Nome. The Property is only 18km from a
seasonal road and approximately 30 kilometers from a newly proposed
deep sea port west of Teller (Port Clarence), which could be
accessible by either land or water. Typically, graphite ore is
processed into a size-sorted rough concentrate on site using a
crushing, grinding, floatation and sieving circuit. Product is transported to end
users as palletized material in either 20kg bags or in
bulk.
Mineralization at the Graphite Creek Property is characterized by
coarse crystalline (large flake) graphite (greater than 80 mesh)
within graphite-bearing schist(s). Graphite mineralization is
exposed at surface. The large flake graphite occurs as
disseminations and high grade segregations and lenses in
distinctive sillimanite-garnet-quartz-biotite schist(s) and/or
quartz-biotite schist(s). The host schist(s) is continuous over 18
kilometres of strike length, based on mapping, sampling and
airborne geophysics. Please refer to the January 21, 2013 press
release where Graphite One reports the filing of a NI43-101
Technical Report with an inferred resource of 164.5 million tonnes
at 4.61% graphite (including 25.44 million tonnes at 9.69% graphite
and 7.8 million tonnes at 13.49% graphite).
During 2011, Graphite One tested 3 samples from surface at the
Graphite Creek area (where the 2012 drilling was focused) for flake
size analysis. The
samples analyzed included: (1) high grade rock grab samples
(assayed 56.9%C); (2) mixed grade rock grab samples (disseminated
and high grade material mixed (assayed 14.5%C)); and (3) rock grab
samples with disseminated graphite (assayed 8.2% C). From these samples, 84.3%; 93.6%
and 76.5% of graphite recovered are large flakes respectively
(greater than 80 mesh). Specifically, the majority of the
recovered graphite in the samples is considered to be large
flake. Furthermore,
the majority of the large flake graphite is greater than 40 mesh
(64.8%, 65.8% and 73.3%, respectively) and is considered Jumbo
Flake. The analytical
work was conducted at Hazen Laboratories, Co, USA.
During 2012, Graphite One tested 4 samples from drill core for
flake size analysis.
The samples analyzed contained 8.7%, 13.7%, 14.9% and 8.0% Cg,
respectively. From
these samples 62.9%, 70%, 63.9%, and 59.3%* of the graphite
recovered are large flakes (*samples were crushed to 10 mesh so
results may be understated because the 2011 samples contained up to
10.5% +10 mesh material). The analytical work was conducted
at Hazen Laboratories, Co, USA. Based on the 2011 and 2012 tests,
the Graphite Creek Property is known to be a flake graphite deposit
whereby the majority of the flake is considered to be large
flake.
About Graphite One Resources Inc.
GRAPHITE ONE RESOURCES INC. (GPH: TSX-V; GPHOF: OTCQX) is a
mineral exploration company with extensive experience in the state
of Alaska and a business strategy to identify, acquire, and explore
high potential projects ready for rapid advancement. The Graphite
Creek Property on the Seward Peninsula of Alaska fits with the
Graphite One business strategy offering significant potential for
the discovery and development of a large flake, graphite deposit
exposed at surface. Graphite One has an option to earn a 100%
interest in the Graphite Creek Property.
Dean Besserer, P.Geol., Vice President of Exploration for the
Company and a ?Qualified Person? under NI 43-101, is responsible
for and has reviewed and approved the technical content of this
press release.
About Kin Communications Inc.:
Kin Communications is one of Canada's leading full-service investor
relations firms specialized in the resource industry. Kin has a
proven track record of generating interest in their clients,
building an active shareholder base, and solidifying communications
that differentiates clients from their peers.
ON BEHALF OF THE BOARD OF DIRECTORS
"Charles Chebry? (signed)
For more information on Graphite One Resources Inc. please visit
the Company?s website,
www.GraphiteOneResources.com
or contact:
Anthony Huston
President & Director
Tel: (604) 697-2862
Email:
AnthonyH@GraphiteOneResources.com
or
Kin Communications?
Tel: (604) 684-6730 / Toll free 1(866) 684-6730?
Email:
ir@kincommunications.com
Website:
www.kincommunications.com
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 adequacy or
accuracy of this release.
This release includes certain statements that may be deemed to be
forward-looking statements. All statements in this release, other
than statements of historical facts that address access to capital,
regulatory approvals, exploration drilling, exploitation activities
and events or developments that the Company expects, are
forward-looking statements. Although the Company believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ
materially from those in the forward-looking statements. Factors
that could cause actual results to differ materially from those in
forward-looking statements include market prices, exploitation and
exploration successes, continuity of mineralization, uncertainties
related to the ability to obtain necessary permits, licenses and
title and delays due to third party opposition, changes in
government policies regarding mining and natural resource
exploration and exploitation, and continued availability of capital
and financing, and general economic, market or business conditions.
Readers are cautioned not to place undue reliance on this
forward-looking information, which is given as of the date it is
expressed in this press release, and the Company undertakes no
obligation to update publicly or revise any forward-looking
information, except as required by applicable securities laws. For
more information on the Company, investors should review the
Company's continuous disclosure filings that are available
at
www.sedar.com.
The mineral resource estimates reported in this press release were
prepared in accordance with Canadian National Instrument 43-101
Standards of Disclosure for Mineral Projects (?NI 43-101?), as required by
Canadian securities regulatory authorities. For United States
reporting purposes, the United States Securities and Exchange
Commission (?SEC?) applies different
standards in the classification of mineralization. In particular,
while the terms ?measured,? ?indicated? and ?inferred? mineral
resources are required pursuant to NI 43-101, the SEC does not
recognize such terms. Canadian standards differ significantly from
the requirements of the SEC. Investors are cautioned not to assume
that any part or all of the mineral deposits in these categories
constitute or will ever be converted into reserves. In addition,
?inferred? mineral resources have a great amount of uncertainty as
to their existence and great uncertainty as to their economic and
legal feasibility. It cannot be assumed that all or any part of an
inferred mineral resource will ever be upgraded to a higher
category. Under Canadian securities laws, issuers must not make any
disclosure of results of an economic analysis that includes
inferred mineral resources, except in rare cases.
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