Mr. Benoit Gascon reports
MASON GRAPHITE REPORTS 658% INCREASE IN MEASURED AND INDICATED MINERAL RESOURCES TO 50 MILLION TONNES, INCLUDING 6.7 MILLION TONNES GRADING 32.4% CG
Mason Graphite Inc. has released an updated mineral resource estimate for
its 100-per-cent-owned Lac Gueret graphite project in northeastern Quebec.
Highlights from the updated mineral resource estimate
- Measured and indicated (M&I) mineral resources increased 658 per cent from 7.6
million tonnes to 50 million tonnes.
- Inferred mineral resources increased from 2.8 million tonnes to 11.9 million tonnes.
- Overall M&I grade is 15.6 per cent graphite (Cg); the main parameters of the preliminary
economic assessment for the Lac Gueret project are still
valid: 22 years of production at 27.4 per cent with a low stripping ratio at
0.76 to 1 and low operating costs at $390/tonne.
The enlarged mineral resource could lead to an optimized pit design and
Large increase in mineral resources
The new mineral resource estimate, as calculated by Roche Ltd.
Consulting Group, includes assay data from 170 holes
(approximately 26,500 metres) drilled in the GC zone and now totals
50,024,000 tonnes grading 15.6 per cent Cg, including 6,672,000 tonnes grading
32.4 per cent Cg, in the measured and indicated categories, and 11,861,000
tonnes grading 17.1 per cent Cg, including 2,637,000 tonnes grading 30.5 per cent Cg,
in the inferred category. The enlarged mineral
resource envelope offers opportunities to further optimize the mine
plan and the project's economics as set out in the PEA in the next
phase of technical studies.
"We are very pleased to see the success of our 2012 drilling program
materialize in this updated mineral resource estimate," commented
Benoit Gascon, president and chief executive officer of Mason Graphite. "We expect the
scale of growth of our project to positively impact what is already
expected to be an economical project. Results from the Lac Gueret
project continue to reinforce our belief in the world-class potential
of this asset."
UPDATED MINERAL RESOURCE ESTIMATE, GC ZONE
Categories Unit Tonnes Cg grade
Measured U1/U2 (5 to 25 % Cg) 4,052,000 13.4
U3 (> 25 % Cg) 465,000 33.8
All units 4,517,000 15.5
Indicated U1/U2 (5 to 25 % Cg) 39,300,000 13.0
U3 (> 25 % Cg) 6,207,000 32.3
All units 45,507,000 15.6
M+I U1/U2 (5 to 25 % Cg) 43,352,000 13.0
U3 (> 25 % Cg) 6,672,000 32.4
All units 50,024,000 15.6
Inferred U1/U2 (5 to 25 % Cg) 9,224,000 13.3
U3 (> 25 % Cg) 2,637,000 30.5
All units 11,861,000 17.1
A cut-off grade of 5 per cent graphite was used for this
mineral resource estimate.
Excellent PEA results maintained
On April 22, 2013, Mason Graphite reported positive results in the PEA
for the Lac Gueret project, which included 22 years of production at
27.4 per cent Cg considering a strip ratio of 0.76 to 1 and operating costs of
$390 per tonne. This technical study used data from the previous July,
2012, mineral resource estimate, which covers only a small portion of
the updated mineral resource area.
The block model that was created for the mineral resource update was
provided to Met-Chem Canada Inc., the firm responsible
for the completion of the PEA. Met-Chem was able to verify and confirm
that conclusions of the PEA are still relevant and valid for the
The company expects the scale and grade of the new mineral resource to
positively affect the project economics in the next phase of technical
An updated National Instrument 43-101 technical report outlining the procedures for
estimation of the mineral resource estimate presented herein will be
filed on SEDAR within 45 days of the date of this press release.
Future mineral growth potential
The new mineral resource estimate is based on drill data from the GC
zone, which represents only one of two mineralized zones identified on
the Lac Gueret property to date.
A total of 170 holes totalling approximately 26,500 metres have been
drilled in this area. The GC zone has a strike length of approximately
1.2 kilometres and the new mineral resource estimate has almost doubled
the width of the deposit to about 600 metres. The mineral envelope
remains open in all directions and the company expects further growth
with additional drilling.
To date, only 18 holes totalling approximately 2,300 metres have been
drilled in this zone, which is located less than one kilometre north of
the GC zone. The GR zone is currently defined on an area spanning about
one kilometre by 110 metres.
Mineral resource estimation methodology
The mineral resource estimation for the GC zone is based on geological
observations and geochemical data modelization involving the following
rock subdivisions: unit 1 is defined by a content of 5 per cent to 10 per cent Cg; unit 2
by 10 per cent to 25 per cent Cg; and unit 3 by 25 per cent Cg or more. Waste has less than 5 per cent
Cg. Units 1 and 2, appearing similar in texture, have been regrouped
during the interpretation. Unit 2 now ranges from 5 per cent to 25 per cent Cg.
The GC zone database includes four channel-sampled trenches (approximately
900 metres) in addition to 170 NQ-size diamond core holes drilled prior
to Dec. 15, 2012 (approximately 26,500 m) for a total of 18,182 samples.
Resources were classified as measured, indicated or inferred based on
information spacing and the confidence to the geological continuity of
mineralization in accordance to the CIM guidelines. Only material
located within a pit shell generated from an optimized mining scenario
run under Whittle software is included in this mineral resources
estimate. This scenario is assuming an overall pit slope of 45 degrees, an
operating cost of $69.00 (U.S.) per tonne milled (including mining and
milling costs), a 100-per-cent mining recovery, no mining dilution and a
conservative selling price of $1,525 (U.S.)/tonne of concentrate at 93.7 per cent
Drill holes cross-sections and plan views were interpreted to construct
3-D wireframe models using the geochemical analyses and
geological descriptive logs with a nominal cut-off of 5 per cent Cg under GEMS
software. No capping value was applied to the assays. Assay intervals
were composited to three m lengths from the raw Cg assay values and
grades were estimated using ordinary kriging. Search ellipsoids were
defined in a plane that parallels the average bedding trend
characterized by an azimuth of 50 degrees and a plunge of 40 degrees. Anisotropy was interpreted in semi-variogram and set to 60 m along the X axis, 40 m along the Y and 50 meters along the Z axis.
The block model was defined by block size of three m long by three m wide by three m thick, rotated 40 degrees counter-clockwise in
alignment to the main geological trend over a total of 425 columns, 265
rows and 110 level, and covers a strike length of 960 m to a
maximal depth of 253 m below the highest surface point. The final
mineral resources which are located inside the optimized pit reach 205
m below surface (maximum depth of optimized pit). From unit types,
the following densities were assigned to the blocks: U1 to U2 (5 per cent to 25 per cent Cg) equals
2.94 grams/cubic centimetres; U3 (greater than 25 per cent Cg) equals 2.88 g/cubic cm; and waste (0 per cent to 5 per cent Cg) equals 2.92 g/cubic cm.
The zone remains open in length and at depth.
Conference call details
A conference call will be hosted today, Dec. 5, 2013, at 2 p.m.
ET, by the senior management of the company to discuss the new mineral
The dial-in numbers are
1-416-340-2216 (Toronto and international) and 1-866-223-7781 (North American toll-free).
There will be a replay of this call, which will last until end of day
on Dec. 12, 2013. The replay call-in numbers are 905-694-9451 (Toronto
and international) or 800-408-3053 (North American toll-free). The
conference ID 2808861 will serve as the password for the replay.
Quality assurance/quality control
Analyses for this drilling campaign were carried out by AGAT
Laboratories Ltd. in Mississauga, Ont., a company independent from
Mason Graphite, exercising a thorough QA/QC program with Mason Graphite personnel inserting one blank, two
standards and one duplicate every 100 samples. AGAT Laboratories is accredited ISO/IEC 17025 by the Standards Council of Canada (SCC).
Carbon as graphite (Cg) assays reported in this press release were
obtained by using the LECO analytical technique ASTM E1915-07A with a
detection limit of 0.01 per cent Cg. Drill holes were sampled over an average
of 1.5 m intervals.
Control analyses were performed by Consortium de Recherche Appliquee en
Traitement et Transformation des Substances Minerales (COREM) of
The resource estimate was prepared by Roche, a company independent from
Mason Graphite. Edwards Lyons, PGeo, from Tekhne Research, and Martin
Perron, from Roche, are independent qualified persons as defined by
National Instrument 43-101. Mr. Lyons and Mr. Perron have reviewed and
approved the technical information pertaining to the mineral resource
estimate in this news release.
Mary-Jean Buchanan, Eng, MEnv, of Met-Chem Canada, an independent
qualified person as defined by National Instrument 43-101, has reviewed
and approved the technical information pertaining to the PEA in this
Yves Caron, PGeo, MSc, director of geology and exploration for
Mason Graphite, and Jean L'Heureux, Eng, Mason Graphite's executive
vice-president of process development, both qualified persons as
defined by National Instrument 43-101, have reviewed and approved the
scientific and technical content of this press release.
We seek Safe Harbor.
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