Mr. Adrian Hobkirk reports
NRG Metals Inc. has applied for permits to conduct a trench
and drill program on the L.A.B. graphite project, located in Quebec, Canada. The property is located in a
very active graphite exploration and production area, and is adjacent and contiguous to the south of the
Timcal (Imerys Graphite & Carbon) mine, one of only two graphite mines producing in North
America.
Highlights:
-
Drill permits secured for L.A.B. graphite project, Quebec;
- Four-trench program to test newly identified anomalous zones;
- 4,025-metre drill program to confirm historic graphite zone and test new anomalous zones.
The property has a historical resource of 1,320,847 tonnes at 9 per cent graphitic carbon based on 79
drill holes totalling 5,958 metres. The drilling was conducted from 1981 to 1983 by Orrwell Energy Corp. The
historical resource was calculated through polygon method with sectional volume calculated using
different average grades for each polygon (source: Douglas Parent, 1982, Quebec Ministry of Natural
Resources report GM46736 and its database). The historical estimate presented
above is relevant to the further exploration of the project which the company intends to undertake
in the future. A qualified person has not done sufficient work to classify the historical estimate as
current mineral resources or mineral reserves, and the issuer is not treating the historical estimate as
current mineral resources or mineral reserves. The historical resource terms used by the author of the
1982 report are not comparable with resource as defined by the Canadian Institute of Mining, Metallurgy and Petroleum. There is no recent drill information on
the Lac Aux Bouleaux project, and further drilling will be required to upgrade and verify the historical
estimate as a current mineral resource, and there is no certainty that this can be accomplished. The
issuer has not done the work necessary to verify the classification, grade or quantity of the resource
or reserve. The issuer is not treating them as a National Instrument 43-101 defined resource or reserve verified by a
qualified person.
To date, the company has completed sampling, metallurgy, and an airborne magnetics and time-domain electromagnetics (TDEM) survey. Results from six mineralized grab samples returned high carbon graphite (per cent Cg) values of 23.8 per cent,
18.4 per cent, 16.6 per cent, 16 per cent, 15.9 per cent and 13 per cent Cg with an average grade of 17.2 per cent Cg (the six grab samples are
selective, and the results and grades may not be representative of the mineralization hosted on the
property). The four Country rock grab samples assayed 1.53 per cent, 0.55 per cent, 0.26 per cent and 0.02 per cent for an average of
0.59 per cent Cg. SGS Canada performed extensive metallurgical testing on the project samples, returning up
to 96.7 per cent Cg (see NI 43-101 technical report), indicating the potential to produce a marketable
graphite concentrate by a simple flotation process. The airborne geophysical survey completed by
Prospectair in November, 2015, confirmed several high-priority targets consisting of known historical
conductors and several large newly identified conductors. The strongest TDEM anomaly outlined, with a
dimension of 300 metres by 500 metres, is located one kilometre northeast of the L.A.B. mill building. It is also on
trend with the interpreted graphitic horizons of the Lac des Iles graphite mine currently operated by
Imerys Graphite & Carbon and is located only 1.2 kilometres south of the main open pit of this mine. As a
result, the conductor denoted by this strong anomaly has been deemed very high priority. Another
conductor located adjacent to the current historical L.A.B. pit is also a high priority as it is the location
of prior surface sampling of which six samples returned an average of 17.8 per cent Cg.
Pending results, the company plans to drill up to 28 holes for 4,025 metres to confirm the historic
resource noted above and explore other high-priority geophysical targets that are larger than those
anomalies contained in the area of the historic graphite resource. Initially, a four-trench program will be
completed across newly identified anomalous zones prior to drilling. Much of the area of interest is
Crown land that has a simple permitting process. A company representative has been in contact with
the private landowners, who comprise a small portion of the area of interest, and has secured their
permission to explore those areas. The company is now reviewing drill and engineering proposals, and
the program is expected to begin in the immediate future.
The technical information contained in this news release has been reviewed by Afzaal Pirzada, PGeo, who is a member of the Association of
Professional Engineers and Geoscientists of British Columbia with licence No. 28657. Mr. Pirzada has prepared and supervised the preparation
of this news release, and approves the scientific and technical content. Mr. Pirzada is a qualified person as defined in National Instrument
43-101.
We seek Safe Harbor.
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