Canada Carbon Inc.
TSX VENTURE : CCB

Canada Carbon Inc.

November 25, 2013 10:21 ET

Canada Carbon Intersects 32.45% Cg Over Two Metres in Drilling and 28.2% Cg Over 1.3 Metres in Channel Samples at Miller Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 25, 2013) - Canada Carbon Inc. (the "Company") (TSX VENTURE:CCB) is pleased to announce it has received the assay results from its trenching and drilling programs that were recently completed at the Miller Mine Project in Quebec. Collectively, the results demonstrate that the graphite and wollastonite mineralization exposed at surface extends to a depth of 39 metres ("m"). Deeper extensions suggested by core observations are still untested, and will be the focus of future drilling programs.

A total of 595.5 m of core in 12 holes was drilled at the Miller Mine Project, of which 33.5 m with higher visible graphite content from 7 drill holes have been assayed for graphite to date. Trenching in relation to historic operations and recent geophysics has been described previously (see news release, September 18, 2013). Channel samples were sent to Actlabs (Ancaster, ON). Core samples were half split and also sent to Actlabs. Quarter splits of richer intersections were sent to SGS Canada (Lakefield) and quarter splits of the graphite veins were sent to Actlabs for additional assaying of the richest intersections. Results are reported from Actlabs and SGS Canada. Actlabs results are reported using protocol 5D-C in which the samples underwent drying, crushing with up to 90% passing through a #10 square-mesh screen, riffle splitting (250 gram) and pulverizing to 95% passing a 105 micron square-mesh screen. Graphitic carbon (Cg) was determined by multistage furnace treatment and infrared absorption, with a 0.05% detection limit. SGS Canada prepared the samples by crushing to 75% passing 2 millimetre, splitting (250 gram) and pulverizing to 85% passing 75 micron square-mesh screen. Graphitic carbon was determined by difference from the carbon assay (after ashing) by tube furnace/coulometer minus the carbonate carbon (after ashing) by coulometry. Results from both drilling and trenching are reported in the tables below.

Drilling Results for the Miller Graphite Project. All holes are NQ.

Drillhole Azimuth, degrees Inclination, degrees From, m To, m Interval, m* %Cg
VN1-02 -- -90 0.00 1.35 1.35 7.22
VN2-01 -- -90 1.00 3.00 2.00 32.45
including 1.00 1.30 0.30 53.60
and 1.70 2.60 0.90 51.70
3.00 7.50 4.50 2.51
7.50 9.60 2.10 9.65
including 8.50 8.90 0.40 11.50
VN2-02 060 -45 0.00 4.00 4.00 2.32
DDH13-03 240 -55 0.00 2.00 2.00 1.61
including 0.80 1.10 0.30 6.33
46.70 48.70 2.00 6.14
including 47.50 48.40 0.90 15.14
DDH13-04 240 -55 27.00 28.00 1.00 4.70
including 27.60 27.75 0.15 11.90
39.50 42.00 2.50 8.12
including 41.30 41.80 0.50 14.50
48.00 49.50 1.50 4.20
including 48.05 48.20 0.15 8.59
DDH13-05 250 -55 2.30 2.60 0.30 22.70
DDH13-07 060 -55 47.00 48.00 1.00 6.51

NOTES: Only core samples with high visible graphite content were assayed. *Data are insufficient at this time to estimate true thicknesses.

Trench Sample Results for the Miller Graphite Project

Sample material Channel width, cm Channel length, m %Cg
VN2 2.5 1.3 28.2
including 0.25 49.7
Pod #1 2.5 0.6 10.1
Pod #2 2.5 1.0 18.6
Pod #3 2.5 1.3 22.2
Pod #3 2.5 0.58 6.57
Pod #4 2.5 0.44 42.0
Pod #5 2.5 0.5 24.4
Pod #5 2.5 0.65 12.5
Pod #5 2.5 0.5 17.7
Pod #6 2.5 0.5 33.0

The most significant results are from the VN2 surface showing, where the mineralization is located at the contact between marble and paragneiss, with local folding often acting as a focus of mineralization. Assays confirm 28.2% Cg over 1.3 m in a channel sample, including 49.7% Cg over 0.25 m. Associated with the mineralization is a graphite-wollastonite pod that assayed 24.4% Cg over 0.5 m and 17.7% Cg over 0.5 m in channel samples. Drilling intersected the graphite-wollastonite pod at 39.3 meters (vertically) beneath the VN2 showing in hole DDH13-03, returning assays similar to the surface results, with 15.14% Cg over 0.9 m. Drill hole DDH13-04 laterally extended the graphite-wollastonite mineralization 14 m toward the east, and intersected 14.5% Cg over 0.5 m at 33.8 m (vertically) underground.

Some drill holes also tested the VN2 at near surface. Drill hole VN02-01 resulted in 32.45% Cg over 2 m from 1 to 3 m down, including two veins assaying 53.6% Cg over 0.3 m and 51.7% Cg over 0.9 m. The Company believes that a mineralized zone is present along the depth extension of the VN2 showing, as demonstrated by the graphite-wollastonite mineralisation found at surface and depth, and will conduct further drilling to find large graphite-rich veins similar to those closely associated with graphite-wollastonite pods at surface. Drill holes DDH13-03 and DDH13-04 were the only holes that tested the showing at depth.

Many lower grade intersections were also sampled during drilling. Some of the lower grade mineralization includes graphitic marble or paragneiss grading between 0.46% and 5.27% Cg. Many rock units were crosscut by centimetre-width graphite veins. The enrichment of graphite in the marble and paragneiss may be caused by the same hydrothermal fluids responsible for the high grade veins found to date. On November 16th, the Company submitted a total of 55.5 m of lower grade core samples from 7 drill holes for assay, to enhance its database, which will help with the modeling of the mineral deposit.

Channel samples were also collected from other graphite-wollastonite pods found during trenching. All channel samples were taken perpendicular to the orientation of the pods. The pods are of meter-scale and consist of calcite, diopside, feldspar, wollastonite and graphite. They have a pegmatitic texture and are primarily located along the contact between marble and paragneiss. From the trench trending northeast to the southwest over 55 m, six graphite pods were sampled. Assays returned values up to : 10.1% Cg over 0.6 m, 18.6% Cg over 1 m, 22.2% Cg over 1.3 m (VN1 showing), 42% Cg over 0.44 m, 24.4% over 0.5 m (Pod near the VN2 showing) and 33% Cg over 0.5 m. The above table show more results of sampling over the pods. The Company's ore genesis model suggests that high grade mineralization was deposited as graphite-rich pods and lump veins along permeable channels utilized by the fluids and gases as they moved toward lower pressure zones.

R. Bruce Duncan, CEO & Director of Canada Carbon stated, "We are very pleased the drilling and channel sampling have confirmed that the very high-grade Miller graphite mineralization continues at depth. We have multiple intersections of graphite in multiple holes, equating to vertical depths of mineralization to at least 39.3 metres, and our impending drill campaign will further extend the down-dip and strike extension of these high-grade intervals. The campaign will also test our three high priority targets defined by airborne EM, each of which exhibits geophysical attributes like those over the VN2 area."

The three high priority EM anomalies that are scheduled for drilling were selected for their size, shape and amplitude (see news release, November 14, 2013). Ground prospecting and beep mat surveying was conducted over the remaining anomalies, which resulted in the discovery of many graphite veins southeast of the Miller Mine pit, 114 m from high priority anomaly E3. Selected grab samples collected from these veins returned assays of 29.9% Cg, 23.4% Cg, 29.8% Cg, 29.9% Cg, 24.5% Cg and 33.3% Cg. Further exploration with trenching is planned over these new areas of surface mineralization, as well on the other EM anomalies where no outcrop was present.

Rémi Charbonneau, Ph.D., P. Geo #290 (an Associate of Inlandsis Consultants s.e.n.c.) is an Independent Qualified Person under National Instrument 43-101, and has reviewed and approved the technical information provided in this news release.

On Behalf of the Board of Directors

CANADA CARBON INC.

R. Bruce Duncan, CEO and Director

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

FORWARD LOOKING STATEMENTS: This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedar.com).

Contact Information