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GeoMegA stakes graphite portfolio in Quebec over 14 properties

GeoMegA Resources (CVE:GMA) said Wednesday it has staked 293 mining claims over 14 new prospective graphite properties in southwestern Quebec.

Each claim is wholly owned by the company, and was staked at $53 per claim, for a total of $15,529.

Among the 14 properties is the Curieres graphite project, which consists of 45 claims, covering 2,465 hectares in the Mousseau and Brunet townships in Quebec.

The property mainly hosts quartzite, biotite gneiss and graphitic gneiss, which are used to produce lithium batteries. In the 1990s, testwork at the property discovered a dozen north-south to northeast-southwest horizons, defined by electromagnetic conductors, outcrops, and hand-made trenches, GeoMegA said.

The outcrop work described graphite horizons between two and three metres thick. High grade mineralization found flaky and coarse graphite, which is the only kind of naturally occurring graphite that can produce lithium-based batteries, the company said.

Lithium-based batteries are used in a variety of 'green' technologies, including electric vehicles. The global demand for these types of products is expected to rise as environmentally friendly products become more appealing than gasoline-based ones.

"All 14 properties were staked for their graphite potential and identified using historical production and exploration data researched by our technical team," said CEO Simon Britt.

"Graphite is in line with our exploration focus dedicated to 'elements needed by Clean Technologies in Qu├ębec' and its global demand is fueled by the emergence of green energy.

"The technical team has a two year window, including two full field seasons (summer), to work with, after which an informed decision will be made. Fast tracking Montviel is top priority, the Graphite Portfolio is a fitting, low cost opportunity we could not pass."

Indeed, GeoMegA continues to evaluate the near-by Montviel property. The initial NI 43-101 compliant resource estimate, which the company released in late September, was based on 18 holes drilled inside the Core zone. The report estimated 183.9 million tons grading 1.45% total rare earth oxides (TREO) in the indicated category, and 66.7 million tons averaging 1.46% TREO in the inferred category.

The company is also conducting bench-scale metallurgical tests at the property, which began in early September, with results anticipated in the first quarter of 2012.

Rare earth products are key components of several clean energy products, including hybrid and electric vehicles, advanced wind turbines, as well as computer hard drives, compact fluorescent lights, and a variety of metal alloys.

On the TSX-Venture Exchange, GeoMegA shares rose 0.78 percent to $1.30, as of 12:17 pm EDT. The company's stock has gained 19.05 percent so far this year.