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  • Carbon Quartet: Two Maiden Graphite Resources, Trading Announcement & Past Producer Readying To Re-Open 0 comments
    Dec 4, 2012 2:47 AM | about stocks: GPHOF, BNCIF, ENZR, DARDF

    December 3 brought a range of graphite news to market, including first-time resource estimates from Madagascar and Alaska, a trading announcement and plans to re-open a Mexican mine.

    Energizer Resources (OTCQB:ENZR) released its anticipated resource for the Green Giant graphite project in Madagascar. The maiden estimate comes from the joint venture portion, which surrounds the company's wholly-owned section on three sides. Energizer holds a 75% interest in the JV, with Malagasy Minerals Ltd holding the remainder.

    Several cutoff grades were used for calculations. Using a 2% cutoff, the resource shows:

    • an indicated category totalling 84.04 million tonnes averaging 6.36% carbon
    • an inferred category totalling 40.34 million tonnes averaging 6.29% C

    The resource starts at surface and reaches a maximum depth of 385 metres. The zones remain open along strike and at depth, Energizer stated.

    The estimate identified two high-grade zones on the Molo deposit's east and west ends, with a combined indicated resource of 60.17 million tonnes averaging 8.1% C, using a 4% cutoff. The eastern zone was capped at 13% and the western at 15%.

    Green Giant's PEA, originally due this month, has been postponed to Q1 2013 to incorporate a higher head grade into the plan.

    Energizer shares opened December 3 at $0.36 but closed the day at $0.31.

    Across the planet, Graphite One Resources (OTCQX:GPHOF) also released a maiden resource. The estimate results from an 18-hole, 4,248-metre program at the Graphite Creek property 65 kilometres north of Nome, Alaska. Using a cutoff of 3% graphitic carbon, the resource shows an inferred category of 107.2 million tonnes averaging 5.78 Cg. The deposit remains open down dip and along strike to the east and west. Graphite One has an option to earn a 100% interest in the property.

    Graphite One opened December 3 at $0.14 and closed at $0.12.

    Further south, Big North Graphite (OTCPK:BNCIF) announced progress with its preparations to re-open the past-producing Nuevo San Pedro mine in Sonora state, Mexico. Big North shares a 50/50 JV with a private company on the 11-hectare underground operation. Among other steps taken, the company stated that "site prep and clearing at the mine site along with enlargement of stockpiling areas will allow for immediate sorting and shipping of mined graphite. The underground workings have been cleared and stabilized for safety and will allow for mining to begin immediately…. The company has obtained approval and permits for the use of explosives and the first holes have been drilled and [are] ready to blast."

    The news boosted Big North's share price considerably, from a December 3 open of $0.07 to a close of $0.09.

    Also on December 3, Standard Graphite (OTCPK:DARDF) announced it had begun trading on the OTCQX International. According to a company statement, "[At] the highest tier of the U.S. OTC market, OTCQX companies are distinguished from the thousands of other companies trading on different tiers in the U.S. OTC market. Several of the world's largest companies, by market capitalization, are currently trading on the OTCQX."

    Standard's flagship Mousseau East Property in Quebec lies 50 kilometres from Timcal Graphite & Carbon's Lac-des-Îles Mine, the largest of Canada's two graphite producers.

    Standard opened December 3 at $0.15 and closed at $0.135.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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