VACOUVER, BRITISH COLUMBIA--(Marketwired - July 27, 2015) - Alabama Graphite Corp. ("AGC" or the "Company") (TSX VENTURE:ALP)(OTCQX:ABGPF)(FRANKFURT:1AG) is pleased to announce the commencement of a Preliminary Economic Assessment ("PEA") on the Company's flagship 100%-owned Coosa Graphite Project, located in Coosa County, east-central Alabama, USA. The contract for the PEA was awarded to AGP Mining Consultants Inc. ("AGP") of Barrie, Ontario, who commenced work on the report when AGP's Principal Mining Engineer, Gordon Zurowski, P.Eng. and Principal Geologist, Pierre Desautels, P.Geo., visited the Coosa property in early July 2015. The PEA will include an economic analysis of the potential viability of the Coosa Graphite Project and will conform to National Instrument 43-101 ("NI 43-101") Standards of Disclosure for Mineral Projects. Objectives of the Company's PEA are outlined below.
- Completion of a Scoping Study that includes an independent preliminary scoping-level engineering analysis of the project;
- Provide an estimate of potential value of the project;
- Provide an estimate of operating costs, as well as sustaining costs;
- Provide a conceptual plan on the timeline and development of the project, as well as an operations plan; and
- The PEA is expected to be completed and published in the fourth quarter of 2015.
Don Baxter, Co-Chief Executive Officer of AGC commented, "We are very pleased to be working with the industry experts at AGP Mining. AGP's engineers and geologists have extensive graphite experience and decades of combined experience in the completion of PEAs. I have had the pleasure of working with them before on other graphite projects, in all facets, including geology, mining and processing. Earlier this month, AGC's Gordon Zurowski and myself spent two days surveying the Coosa and Bama properties, during the summer diamond drill program, which led to the program's expansion.
"AGC remains on schedule to publish the Company's inaugural PEA on the Coosa Graphite Project in Q4 2015, incorporating our drill results from 2012 to summer 2015, and the upcoming updated NI 43-101 Mineral Resource Estimate," said Mr. Baxter. "The fall season is expected to be very exciting and rewarding for AGC. We anticipate the PEA will provide a positive framework of the merits of the Coosa Graphite Project."
Ron S. Roda, AGC's President and Co-Chief Executive Officer stated, "As 100% owner of both the Coosa Graphite Project and the past-producing Bama Mine Project - the only flake graphite projects in the continental United States - our shareholders are uniquely positioned to potentially benefit from increased graphite demand from lithium-ion batteries, high-tech applications, the electrification of automotive and stationary batteries; and also from the potential of economically scalable natural graphene production. We continue to proceed on the development and testing of valued-added graphite products - namely, coated spherical graphite ("CSPG") for use in anodes for Li-ion batteries - and our naturally occurring graphene and graphene-based derivatives."
As announced on July 23, 2015, the Company's updated Mineral Resource Estimate is currently underway with Metal Mining Consultants Inc. (Highlands Ranch, Colorado) and is scheduled for completion by September 2015.
Rick Keevil, P. Geo., Vice President of Project Development, is a Qualified Person as defined by National Instrument (NI) 43-101, and has approved the disclosure of the scientific or technical information concerning the Coosa Property contained in this press release.
About Alabama Graphite Corp.
Alabama Graphite Corp.'s mission is to become one of the greenest graphite producers in the world. The Company, through its wholly owned subsidiary, Alabama Graphite Company Inc., is conducting exploration and development both at its flagship Coosa Graphite Project in Coosa County, Alabama, USA and the recently acquired Bama Mine Project in Chilton County, Alabama, USA. Alabama Graphite holds a 100% interest in the mining leases in respect of these two advanced-stage projects, both of which are on private land. The two projects encompass over 43,000 acres and are located in an area with significant historical production of crystalline flake graphite. The Company has the largest NI 43-101 indicated flake graphite resource in the United States based on drilling 0.18 square miles (0.3% of the total acreage). The Alabama deposits are unique in that a significant portion of the graphite-bearing material is oxidized and has been broken down into an extremely soft rock. Both projects have in place critical infrastructure, are within close proximity to transportation routes and enjoy a hospitable climate allowing for year-round production and delivery.
For further information and updates on the Company, please visit www.alabamagraphite.com.
Disclaimer for Forward-Looking Information
This press release contains forward-looking information under applicable Canadian securities laws ("forward-looking statements") that are based on the beliefs of management and reflect Alabama Graphite Corp.'s current expectations. When used in this press release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements. Such statements reflect the current view of Alabama Graphite Corp. with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements.
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among other things, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of graphite; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the Company's publicly filed documents. Forward-looking statements are also based on a number of assumptions, including that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for exploration is available as scheduled and does not incur unforeseen breakdowns, that no labour shortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technical problems occur, and that laboratory and other related services are available and perform as contracted.
Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and Alabama Graphite Corp. undertakes no obligation to update forward-looking statements (unless required by law) if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.
Alabama Graphite Corp. cautions that the foregoing list of material factors and assumptions are not exhaustive. When relying on Alabama Graphite Corp. forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and assumptions and other uncertainties and potential events. Alabama Graphite Corp. has also assumed that the material factors and assumptions will not cause any forward-looking statements to differ materially from actual results or events. However, the list of these factors and assumptions is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
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