Commodore Metals Corp. press release
Drills Turn on Graphite One Property in Alaska
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SOURCE:[Metal Investment News] - On September 24, 2013 - Graphite One (GPH-TSX-V) (GPHOF: OTCQX) announced that it had begun drilling conductors along strike at the Graphite Creek Project in Alaska using data gathered from 2012’s airborne survey and drill program.
Graphite Creek is USA’s only active advanced graphite project, located 65 kilometres north of a deep sea port at Nome, Alaska. The Graphite Creek Property comprises 129 claims totaling 6,799 hectares on the Seward Peninsula of Alaska.
Image: http://www.accesswire.com/images/317/graphite1.jpg
[](http://www.metalinvestmentnews.com/wp-content/uploads/2013/09/graphite1.jpg)The 2013 drilling program is designed to expand the continuity of the mineralization along strike which – based on sampling, mapping and geophysics – could be an additional 15.8 kilometers in length.
2012 step-out drill-hole 12GCH008 2.2km west of the inferred resource confirms that the deposit remains open at depth and along strike. Integration of the 2013 drill data will add significant value as Graphite One works toward a Preliminary Economic Assessment (PEA) and Bankable Feasibility Study (BFS) over the upcoming months.
Key Investment Highlights:
43-101 inferred resource of 164.5 Mt at 4.61% CgStable pro-mining jurisdictionAt surface high grade zone of 7.8 Mt at 13.5% CgPotential for a multi-million tonne target of 235 – 492 Mt with grade between 4.2% and 7.9% CgLow capex and operating costLarge-flake, high-grade graphite that is exposed at surfaceLow strip ratioExploration team with successful track record of increasing shareholder value
As an integral part of the mine permitting process, Graphite One will continue to develop its Quality Assurance Program Plan (QAPP).
Image: http://www.accesswire.com/images/317/graphite%201%202.jpg
[](http://www.metalinvestmentnews.com/wp-content/uploads/2013/09/graphite-1-2.jpg)The company has also demonstrated a leaching process capable of producing a high purity of 99.2% graphitic carbon (Cg) from a rough concentrate.
Natural graphite produced from mining typically achieves recoveries of 70-90% Cg, whereas synthetic graphite is usually greater than 99%. With superior initial test results from Graphite Creek, GPH anticipates competing in the $13-billion synthetic market.
"We are excited about our 2013 field campaign where we’ll continue to grow our world class resource ahead of our PEA and BFS with our current drill program" stated Anthony Huston, President and Director of Graphite One Resources.
"The Graphite Creek property is the largest known flake graphite deposit in North America. We look forward to continued news flow over the coming months and ultimately an expansion of our existing resource".
Global Graphite Consumption
Global consumption of natural graphite has increased from 600,000 tonnes in 2000 to 1,100,000 tonnes in 2011Flake graphite production is approximately 400,000 tonnes per year Demand from BRIC* has been growing at 5% per annum for the last decadeThere is a 5% growth rate anticipated for the steel and automotive industry from 2012 to 2016Automotive applications currently account for 55% of the graphite consumption30% ‐ 40% annual growth in the lithium battery market20% annual growth in the electric vehicle marketGraphite is listed as a "Supply Critical Mineral" in USA“Strategic Mineral” in European Union
China currently produces approximately 70% of the world’s graphite but it has recently restricted exports by instituting an export tax.
Global graphite demand is growing rapidly catalysed by new green technologies, including but hybrid-electric vehicles, fuel cells, Lithium-Ion Batteries, Pebble Bed Nuclear Reactors; lubricants and Graphene.
Graphite prices have doubled over the past three years. The industrial world is recognizing the importance of reliable and stable graphite supply. There is a likelihood of a shift in major production centers as China’s resources continue to deplete. Over 200 companies are developing technologies based on graphite alone.
GPH has an Option to earn a 100% interest in the Graphite Creek Project over a three year period through exploration work commitment totaling $1,525,000 which they have completed as last year’s exploration totalled $4.5M. GPH has negotiated an NSR for 5% which can be reduced to 3% for a $4M payment. They currently have about $2 million in the bank.
Image: http://www.accesswire.com/images/317/graphite%201%203.jpg
Like potash, graphite is typically found in large consistent deposits. Since the mineralisation does not pinch and swell, moving an "inferred" resource into a higher category is usually just a matter of infill drilling.
A peer valuation comparison suggests that the Graphite Creek Project is significantly de-risked.
Graphite One is currently trading at .16 with a market cap of $18 million.