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Graphano Energy Ltd
Symbol GEL
Shares Issued 16,838,268
Close 2022-06-27 C$ 0.29
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Graphano signs option deal for Standard graphite mine

2022-06-28 10:53 ET - News Release

Ms. Luisa Moreno reports

GRAPHANO SIGNS OPTION AGREEMENT TO ACQUIRE STANDARD GRAPHITE MINE AND ADDS ADDITIONAL CLAIMS NEAR LAC AUX BOULEAUX

Graphano Energy Ltd. has entered into an option agreement with Daniel St-Pierre (the vendor), pursuant to which the company has been granted the exclusive right and option to acquire 100 per cent of the Standard graphite historical mine, located 32 kilometres northeast of the company's Lac Aux Bouleaux graphite project.

Luisa Moreno, chief executive officer of the company, stated: "Based mostly on historical reports we were able to drill right through the high-grade mineralization at the historical Standard mine. Going forward we will develop a detailed exploration plan for Standard, starting with airborne geophysics, with the aim of defining additional significant resources within trucking distance that could be added to future production from the historical resource at Lac Aux Bouleaux. The forward plan is to consolidate potential resources from our regional claims and to feed our own centralized processing plant using the existing mill buildings at Lac Aux Bouleaux."

Key results at Standard:

  • Twenty grab samples from recent visits to the site yielded assay results between 5.32 per cent Cg (graphitic carbon) and 26.4 per cent Cg. The average grade of the 20 samples was 19.8 per cent Cg.
  • Historical trench and pitting work resulted in 9 per cent Cg over 4.2 metres, 22.4 per cent Cg over 3.04 m and 11 per cent Cg over 10.6 m.
  • Recent drilling results yielded 11.61 per cent Cg over 3.3 metres.

During recent site visits, 20 surface grab samples were collected from numerous old trenches, pits and bedrock sources within a 100 m by 75 m area near the historic Standard mine shaft area. This work has confirmed the historic reports of multiple horizons of high-grade graphite mineralization. The recent grab sample assays range in grade from 5.32 per cent Cg to 26.4 per cent Cg. The average grade of the 20 samples collected was 19.8 per cent Cg.

In May, 2022, the company completed three short drill holes totalling 127 metres in the shaft area. Two of the holes intersected encouraging graphite mineralization highlighted by an intersection of 11.61 per cent Cg over 3.3 m (core length). The third hole entered the old underground mine workings at a depth of 23 m and was abandoned without testing the mineralization.

An airborne geophysical survey will be conducted at Standard in June/July of 2022. A detailed exploration plan is also being developed to advance this project.

All surface grab and drill core samples were bagged and tagged using best practices and were delivered to Activation Laboratories (Actlabs), Ancaster, Ont., for sample preparation and analyses using the laboratories' Code 4F-C graphitic, analyzing C-graphite (infrared) where the sample is subjected to a multistage furnace treatment to remove all forms of carbon with the exception of graphitic carbon; and C-total (infrared). Actlabs is an independent commercial, accredited ISO certified laboratory.

Terms of the option agreement

The option agreement covers six claims totalling 355 hectares. At the closing of the option agreement the vendor will receive 50,000 common shares of Graphano. On the first anniversary of the option agreement the vendor will receive 50,000 additional shares of Graphano and on the second anniversary the vendor will receive 100,000 additional shares of Graphano, plus a cash payment in the amount of $20,000. The vendor will retain a royalty of 2-per-cent net smelter returns on future production from the Standard mine property. The company will have the option to purchase the royalty for $600,000 cash at any time.

The option agreement is subject to acceptance by the TSX Venture Exchange.

Standard historical graphite mine highlights

The area is underlain by sedimentary rocks of Precambrian age, known as the Grenville series. The main host rocks of the deposit are a sequence of paragneiss and feldspathic quartzites which strike N 80 degrees E and dip 32 degrees south. The gneisses are irregularly mineralized with graphite and in places contain rich concentrations of the mineral. The associated quartzites are also graphitic. A road once led from the mine site to a small mill, about 800 metres north of the deposit. The mill is now in ruins.

The original operators produced graphite on a small scale between 1923 and 1930 but ceased operations due to the low unit price of graphite during the 1929 market crash. Moreover, it seems that the small-scale operation and the inefficient milling process known at that time may have led to the failure of the enterprise but not for lack of ore.

Geophysical surveys completed in the 1980s over the area identified a conductive anomaly outlining the graphite zone, which is 500 metres long and confirmed by the old 1922 trenches and pits in the immediate area of the historical mine.

An airborne geophysical survey covering a larger area will be conducted by Graphano in June/July of 2022.

New graphite claims

In addition to signing the option agreement for Standard, the company has staked two sets of additional graphite claims, five km and 10 km south from the Lac Aux Bouleaux project, as part of the company's consolidation strategy. A total of 11 claims covering 600 hectares were staked and comprise the Dudley and Lac Vert-Bouthillier graphite showings.

The development of historical graphite deposits as well as new discoveries, all within trucking distance, should allow for resource consolidation to one processing centre at Lac Aux Bouleaux.

Qualified person

The scientific and technical content disclosed in this press release was reviewed and approved by Roger Dahn, BSc, PGeo, a director of the company and a qualified person as defined in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

About Graphano Energy Ltd.

Graphano is an exploration and development company that is focused on evaluating, acquiring and developing energy metals resources from exploration to production.

Graphite is one of the most in-demand technology minerals that is required for a green and sustainable world. The company's Lac Aux Bouleaux property, situated adjacent to Canada's only producing graphite mine, in Quebec, Canada, has historically been an active area for natural graphite. With the demand for graphite growing in some of the most prominent and cutting-edge industries, such as lithium batteries in electric cars and other energy storage technologies, the company is developing its project to meet the demands of the future.

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