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Detailed Quote for Canada Strategic Metals Inc. (CJC:CA)
February 26, 2013 10:03 ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 26, 2013) - Canada Strategic Metals Inc. ("Canada Strategic Metals" or "the Company") (TSX VENTURE:CJC)(FRANKFURT:YXEN)(OTCBB:CJCFF) is pleased to announce that metallurgical characterization testing based on a composite of several graphite samples from the La Loutre Property has reported a large percentage of medium to Jumbo size graphite flakes. This characterization testing provides a clear indication of the size distribution and liberation of the graphite at La Loutre, which would have a direct effect on the recovery and purity of a graphite concentrate. The Company has submitted three (3) composites, representing three (3) different geological units present on the property to Global Mineral Research Ltd (GMR Ltd) for this evaluation. This first result from composite number 2 has been prepared with the grab samples obtained during the summer exploration program on the property (see news release dated July 24, 2012) which confirmed the presence of a large graphite bearing structure covering an area of approximately 7 kilometers by 1 kilometer with results of up to 22.04% Graphite in multiple parallel zones of 30-50 meters wide. Another area has also been identified covering approximately 2 kilometers by 1 kilometer in multiple parallel zones of 20-50 meters wide, which includes results of up to 18% Graphite. The Company is still awaiting characterization results for composites # 1 and # 3. See table below for the composite samples sent to the laboratory and full table of size characterization for composite #2 received to date:
Characterization table results for Composite La Loutre #2:
La Loutre composite details:
Please click here to view picture of graphite flake from the composite #2 flake size characterization test.
Meanwhile, the Company has initiated the permitting process to complete a 1,500 meter drill program on the La Loutre property this spring. The objective of this 15-20 hole drill program will be to verify the areas of high-grade graphite results towards establishing a flake graphite resource at the La Loutre property by December 2013.
About the La Loutre Property
The La Loutre property consists of one large contiguous block of 42 mineral claims (25.09 km2), located approximately 117 km northwest of Montreal, in southern Quebec, and is situated within the highly prospective Central Metasedimentary belt of the Grenville geological province, host to many active graphite projects. At La Loutre, graphite is hosted in graphitic crystalline marbles and paragneiss, similar to the host stratigraphy at Timcal's Lac des Iles graphite mine, currently Canada's only producing graphite mine, which is located at only 53 kilometers West of the La Loutre property.
La Loutre Assay Results
Please click here to view a map of the surface sample results and recent electromagnetic (EM) survey).
Natural graphite comes in several forms: flake, amorphous and lump. Graphite has many important new applications including its use in lithium ion batteries, fuel cells and nuclear and solar power that have the potential to significantly increase the demand for this critical element. For instance, there is between 10 and 30 times more graphite required by weight to produce a lithium-ion battery than there is lithium. In addition, the recent discovery of a new material called graphene, which is actually derived from graphite, has also heightened interest. International research is now underway into a number of its potential applications including enhancing the speed and processing power of many modern electronic devices. This has also increased the interest in graphite.
Meanwhile, global consumption of natural graphite has increased from ~600,000 in 2000 to 1.2 MM t in 2012. Demand for graphite has been increasing by approximately 5% per year since 2000 due to the ongoing modernization of China, India and other emerging economies, resulting in strong demand from traditional end uses such as the steel and automotive industries. Of the 1.2 million tons of graphite produced annually, approximately 40% is of the most desirable flake type. China, which produces about 73% of the world's graphite, is seeing production and export growth leveling and export taxes and a licensing system have been instituted. A recent European Commission study regarding the criticality of 41 different materials to the European economy included graphite among the 14 materials high in both economic importance and supply risk (Critical Raw Materials for the EU, July 2010). As a function of these fundamentals, demand for graphite and thereby prices are expected to rise as electric vehicles and lithium battery technology continue to be adopted and while the material performs a greater role in new technology applications. Graphite prices have been increasing in recent months and over the last couple of years and prices for large flake, high purity graphite (+80 mesh, 0.2mm, 94-97% Carbon) have more than doubled.
About Canada Strategic Metals
Canada Strategic Metals is an emerging growth company focused on the exploration and development of its large portfolio of graphite projects covering over 60,000 hectares throughout Quebec. With management experience in green technology, and junior resource exploration and development, Canada Strategic Metals is well positioned to aggressively advance this promising portfolio for our shareholders.
*Grab samples are selective by nature and are unlikely to represent the average grade of a deposit.
Jean-Sebastien Lavallée (OGQ #773), geologist, shareholder and President and Chief Executive Officer of the Company and a Qualified Person under NI 43-101, has reviewed and approved the technical content of this release.
On Behalf of the Board,
"Jean-Sébastien Lavallée", President & CEO