IM Graphite News in Brief 17 – 23 April

By Laura Syrett
Published: Friday, 24 April 2015

Valence reunites with UK sales agent after 25 years; BatteryLimits approves IMX’s Chilalo project plan.

ASX-listed Valence Industries Ltd has signed a new sales agency contract with a UK-based company for graphite produced at its Uley project in South Australia.

The contract is for the sale of between 22,000 tpa and 25,000 tpa flake graphite for a period of three years, at a forecast average price of $1,400/tonne.

Valence said it could not disclose the name of the agent, but that the company previously managed the sales of Uley graphite when the mine was in operation 25 years ago.

The company shipped its first 20-tonne shipment of Uley graphite, produced from stockpiled material at the property, at the end of March.

Australian consultancy group BatteryLimits Pty Ltd has confirmed that IMX Resources Ltd’s Chilalo graphite project in southeast Tanzania has the key criteria for a successful graphite operation to produce 25-50,000 tpa graphite concentrate.

ASX-listed IMX said that the report highlighted Chilalo’s inferred mineral resource of 7.4m tonnes graphite grading at 10.7% C for 792,000 tonnes contained graphite at the Shimba deposit; the metallurgical characteristics of the mineralisation; the project’s infrastructure links and community relationships as key positives for the company’s development plan.

TSX-V-listed Caribou King Resources Ltd has released the final tranche of assay results from tests on graphite samples taken from the Uncle zone of its Buckingham graphite property in southern Quebec.

Combined flotation concentrate recovered from a 600 metre-wide mineralised area at the Uncle zone returned grades of up to 99.2% C for +28 mesh material, accounting for 2.3% of the deposits distribution and included purities of 97.8% C for +35 mesh material; 98.3% C for +48 mesh material; and 98.1% C for +65 mesh material.

The results were obtained in a single flotation test without process optimisation, according to Caribou. The samples were analysed by SGS Canada Inc. at Lakefield, Ontario.

Saint Jean Carbon Inc. has started a spring work programme at its Clot graphite property in southern Quebec.

On completion of the work, Saint Jean will prepare a preliminary technical report outlining future work programmes at the Clot site, which consists of five established claims and three under request for a total area of 297.4ha (2.97km2), located approximately 150km northwest of Montreal.

In the US, Alabama Graphite Corp. has finalised plans for a diamond drilling programme at its Coosa graphite project in Alabama, due to commence at the end of April.

The company said that the primary purpose of the drilling is to expand the oxide resource at Coosa and will consist of infill drilling between the main indicated resource and inferred resources, detailed in Alabama Graphite’s previously published N1 43-101 report.

An additional drilling programme is planned at the past producing Fixico mine, which is also located on the Coosa property. Trenching at the site in late 2014 discovered long widths of graphitic schist, according to the company, which now plans to drill 27 holes over 1,981 metres at the site.

Alabama Graphite has also engaged Metal Mining Consultants to initiate preliminary capex and opex studies for Coosa.

In financial news, Big North Graphite Corp. is seeking approval to consolidate its issued and outstanding share capital with the TSX Venture Exchange.

The intended consolidation will be on a basis of one post-consolidation common share for every 10 pre-consolidation shares and will reduce the number of issued and outstanding shares in the company from just under 84m to approximately 8.4m.

Big North’s outstanding options and warrants will also be adjusted on a 10 to one basis. The intention of the consolidation is to put the company in a stronger position to raise funds to finance the development of its El Tejon graphite property in Mexico.

ASX-listed Kibaran Resources Ltd has said that it has received firm commitments to raise Australian dollar (A$) 4.1m ($3.19m*) through an equity placement and also plans to offer a share purchase plan to all eligible shareholders on the same terms of the placement to raise a further A$1m.

Funds raised from the equity and share purchase placements will be used to help finance the development of Kibaran’s Epanko graphite project in Tanzania.

Fellow ASX-listed Mozambi Resources Ltd has raised A$20,000 through the issue of 20m options to a number of limited invitees, determined by the company.

Proceeds from the issue will be used to list the new and existing options in the Mozambi, which is exploring two licence areas in Mozambique’s Cabo Delgado province.

Finally, in graphene news, UK-listed Applied Graphene Materials Plc said it has received positive preliminary results from independent performance tests on graphene-reinforced polyurethane coatings.

The results demonstrate low loading levels of the graphene nanoplatelets produced by the company can substantially enhance the scratch resistance and ultimate tensile strength of a polyurethane clearcoat, with minimal damage to transparency or colour.

Polyurethane coatings are used in a wide range of industries including automotive, aircraft and general industrial coatings.

*Conversion made April 2015