Eagle Graphite Incorporated

Eagle Graphite Incorporated

October 19, 2015 09:00 ET

Eagle Graphite Reports Results of Feed Concentration Trials

TORONTO, ONTARIO--(Marketwired - Oct. 19, 2015) - Eagle Graphite Incorporated (TSX VENTURE:EGA)(FRANKFURT:NJGN) ("Eagle Graphite" or the "Company") is pleased to announce pilot scale results related to pre-concentration of feed material at the Black Crystal graphite project.

"Historically graphitic feed material has been transported from our quarry to the plant without much processing other than screening the occasional large rock out of the sandy host material," explains Jamie Deith, President and CEO. "For some time, we have been looking at alternatives for concentrating the graphite at an earlier stage in the process. The objective is to separate out waste at the quarrying stage, and deliver a substantially higher grade of feed to the plant. The results so far are encouraging enough that we feel compelled to pursue this further."

The Company considers the details of the concentration methods to be proprietary, however the concentration methods tested do not require the full infrastructure of a flotation plant, and can therefore be deployed at or near the quarry site.

Tests were performed on approximately 50kg of rock sampled during the Company's 2015 plant exploration program. The material for the sample was intentionally selected for having a substantially lower starting grade than the historical average for plant feed. The sample was crushed to -35 mesh and sorted into size fractions. 5kg of each size fraction was then processed in the pilot scale concentrator to produce several samples of concentrate and tails. By varying the equipment settings between samples, a range of single stage results was obtained for each size fraction.

Test results are summarized below:

% of
35x25 24% 30% 1.6% 6%-95% 0.3%-0.9% 20%-85%
50x35 31% 38% 1.6% 7%-88% 0.2%-1.1% 30%-80%
80x50 22% 23% 1.4% 14%-84% 0.4%-1.4%4 43%-82%
100x80 9% 4% 0.6% 1.2%-6% 0.4%-0.9% 14%-71%
-100 14% 5% 0.4% Not tested Not tested Not tested
Total 100% 100% 1.3%5
1 All grades indicated are measured as percent graphite by mass. The weighted average starting grade for the entire sample was 1.3%
2 Tails grades between size fractions varied in part due to differences in starting grades between size fractions. Highest tails grades were associated with the highest concentrate grades.
3 Recovery is estimated as total mass of graphite in concentrate as a proportion of total mass of graphite in starting sample.
4 Unavoidable variability in random sampling occasionally yields a grade estimate that is outside expected bounds.
5 The 1.3% average grade of the sampled rock is substantially lower than the historical average plant feed grade of 3.9%.

Based on these encouraging results, the Company intends to expand the investigation to include a wider variety of feed samples, multi-stage concentration circuits, and larger scale versions of the machinery used in the pilot tests. The Company wishes to emphasize that there is no guarantee that these investigations will result in any material operational improvements relative to historical practices.

About Eagle Graphite

Eagle Graphite Incorporated is an Ontario company that owns one of only two natural flake graphite production facilities in North America, located 35 kilometres west of the city of Nelson in British Columbia, Canada, and 70 kilometres north of the state of Washington, USA, known as the Black Crystal graphite quarry. The Company's shares are listed on the TSXV under the symbol "EGA" and on the Frankfurt Stock Exchange under the symbol "NJGN".

Edward Nunn, P.Eng., a "Qualified Person" as defined by NI 43-101, has approved the scientific and technical information in this press release.

Cautionary Statements

Disclosure Regarding Forward-Looking Statements: This press release contains certain "forward-looking information" within the meaning of applicable securities legislation. Such information is based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking information and accordingly, readers should not place undue reliance on such information. Although the Company believes, in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate, that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. In evaluating forward-looking information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward looking information. The statements in this press release are made as of the date of this release. The Company undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of the Company or its securities, its financial or operating results, as applicable.

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

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