Focus Metals Inc.
TSX VENTURE : FMS
OTCQX : FCSMF
FRANKFURT : FKC

Focus Metals Inc.

December 05, 2011 07:26 ET

Focus Metals Reports 43-101 Mineral Resource Calculation for its Lake Knife, Quebec, Graphite Property

OTTAWA, ONTARIO--(Marketwire - Dec. 5, 2011) - Focus Metals Inc. (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) (the "Company") is pleased to report the results of the mineral resource estimate for its 100% owned Lake Knife Project near Fermont, Quebec.

The graphite mineral resource estimate was prepared by Edward Lyons, P.Geo. and Guy Saucier, Eng., independent Qualified Persons of Roche Ltd. ("Roche"). A Technical Report in compliance with National Instrument NI 43-101 will be filed on SEDAR within 45 days of this release. They have verified the information in this news release.

Mineral Resource Estimation

The new mineral resource estimate is based on the 105 drill holes (total 8,611 metres) drilled by Mazarin. Both the historical and modern data were used. Five zones were interpreted and modeled within the revised interpretation of the resource calculation. The block model was developed using GEMS software by Gemcom. Blocks are 5 metres long, 7 metres wide and 5 metres high. A cut-off of 5% Cgr (carbon as graphite) was used.

Category Tonnage Grade (%Cgr)
Measured 637,250 15.59
Indicated 4,334,890 15.68
Total (M+I) 4,972,140 15.67
Inferred 3,000,225 15.58
  • Measured and indicated resources totalling 4.97 million tonnes grading 15.67% Cgr.;

  • Inferred resources of 3 million tonnes grading 15.58% Cgr.;

  • Five different zones are included in the resource calculation; all zones start from surface to a maximum depth of 125 metres with a total extension of 350 metres by 650 metres; all zones remain open in all directions; inferred resources can be upgraded to indicated resource after completion of in-fill diamond drill holes.

  • Values displayed in this table are undiluted and "in-situ" as no economic parameters, such as mining, milling or metallurgical recovery, have been applied to these values, and therefore they demonstrate no economic viability.

Interpolation Parameters

The inverse distance squared was used to interpolate the block using 3-metres assay composites. Each zone had its search ellipse parameters to interpolate the grade. The parameters were based on the geological difference in the deposit model. A single value of 2.86 t/m3 density was used for all models. No capping value was applied to the assays.

To report the resource and interpret the zones limits, a cut off grade of 5% Cgr was used in the model.

To ensure a "reasonable prospect of economic extraction", a Whittle optimized mining scenario was performed by Roche assuming an overall pit slope of 45°, an operating cost of $42.20 US per tonne milled (including mining and milling costs), a 95% mining recovery, a 5% mining dilution and a conservative selling price of $1,600 US/tonne of concentrate. By comparing this Whittle shell to the report resource, less than 2% of the tonnage fell outside of the "Base Case" pit shell.

Classification

The classification of the resource was performed with three different passes. The following constraints were placed on each pass for the Measured, Indicated and Inferred Categories:

  • Measured: Blocks surrounding the drill holes in a 5 metres diameter sphere. This category was only applied to zones (three out of five zones) with good continuity and drilling spacing at 25 metres.

  • Indicated: An ellipse of 30 metres, 27 metres and 12.5 metres in the main, major and minor axes, respectively, was used to select blocks within the 25 metres by 25 metres drilling pattern. A minimum of 6 composites is required for this category.

  • Inferred: An ellipse of 80 metres, 75 metres and 37.5 metres in the main, major and minor axes, respectively was used.

Twin Holes Campaign

In 2010 and 2011, in order to confirm the historical resources and the validity of the data obtained in the 1980s, eleven (11) twin drill holes were drilled. The 2010-2011 campaign was conducted under the supervision of IOS Services Géoscientifiques. A strong correlation was observed between the historical and the modern holes. The geological interpretation has been revised by Edward Lyons, P. Geo.

"This mineral resource estimate is a key milestone for Focus Metals as it lays the groundwork for a scoping study in 2012," said President and CEO, Gary Economo.

"This report validates our position that Focus Metals' Lac Knife property holds the best grade of graphite in the world," said Gary Economo. "It also establishes the regulatory benchmark for growth and development of our extraordinary property."

Mr. Economo added: "We knew of Lac Knife's potential value from the historic drilling results we inherited from its previous owners, and it formed the basis for our mine-to-market-to-technology business strategy."

Mr. Economo said an expanded, deeper and more comprehensive drilling program is planned for the spring of 2012 to update this initial resource estimate.

Mr. Tony Brisson, P. Geo., a Qualified Person as defined by NI 43-101 is responsible for the technical information contained in this release.

About Focus Metals Inc.

Focus Metals Inc. is an emerging mid-tier junior mining company, a technology solutions supplier and a business innovator. It is the owner of the highest-grade (15.7%) technology graphite resource in the world. The company's goal is to assume a dominant industry leadership position by becoming the lowest-cost producer of technology-grade graphite. As a technology-oriented enterprise with a view to building long-term, sustainable shareholder value, Focus Metals is invested in the development of graphene applications and patents through Grafoid Inc.

Forward-Looking Statements

This News Release may contain or refer to "forward-looking statements" which reflect Management's expectations regarding the Company's future growth, results of operations, performance and business prospects and opportunities. These statements reflect Management's current beliefs at the time of this news release and are based on information currently available to Management. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Management's expectations are exploration risks detailed herein and from time to time in the filings made by the Company with securities regulators. While the Company anticipates that subsequent events and developments may cause its views to change, it specifically disclaims any obligation to update these forward-looking statements, except in accordance with applicable securities laws. Accordingly, readers are advised not to place undue reliance on forward-looking information.

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.

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