Focus Metals Inc.
TSX VENTURE : FMS

Focus Metals Inc.

June 30, 2011 09:33 ET

Focus Metals to Expand Drilling at its Lac Knife Graphite Property

OTTAWA, ONTARIO--(Marketwire - June 30, 2011) - Focus Metals Inc. (TSX VENTURE:FMS) announced today it will upgrade its summer operational schedule to further define and expand its graphite resource at its Lac Knife, Quebec, property.

The purpose of the new drilling program is to meet two specific objectives; place historic resource calculations in a 43-101 framework, and; obtain significant graphite samples for potential offtake partners.

"Ultimately, this will enable us to determine how large the resource is," said Gary Economo, President and CEO of Focus Metals Inc. "It also fits our customer-driven business strategy.

"This financially responsible decision should satisfy the interests of regulators with an updated 43-101; potential customers with sufficient samples, and; shareholders with greater potential for long-term value," Mr. Economo said.

Samples will be sent to those potential offtake partners in the United States, Europe and China, Mr. Economo said, adding: "It made sense to reap the benefits that expanded drilling brings."

Samples will be drilled out by large-bore machines to depths of up to 300 meters – almost twice the depth of previous drilling - while new areas will be drilled on the southern portion of the Lac Knife property.

The bulk of those samples will be processed to 95%, while a portion of those samples will be purified to 99.9% for some customers.

Mr. Economo said that unlike precious metals, the true economic value of technology grade graphite is dependent on the specifications of the end users.

The graphite on Focus Metals' property varies from eight percent to over 40 percent grade and can be mined more efficiently when a more complete data picture from drilling is completed this summer.

Additionally, Mr. Economo said, it is prudent at this time to drill more holes and deeper holes in order to develop the company's mine plan.

The Lac Knife crystalline flake graphite property has undergone two pre-NI 43-101 feasibility studies since 1989.

Last year, Focus Metals awarded a contract to Roche Consulting Group Ltd to undertake a technical and environmental due diligence on the property. Roche's mandate was to evaluate the correlation between the historical resource estimate and new 2010-11 drilling estimates.

An NI 43-101 technical report including a compliant resource calculation was due for publication in the summer of 2011. That report will incorporate the new drilling results.

Roche was also contracted to produce a Preliminary Economic Assessment in tandem with the NI43-101 compliant resource calculation. An enhanced new drilling program may alter results from work already undertaken.

Profile:

Focus Metals Inc. is an emerging, mid-tier junior mining company with excellent discorvery stage base metals and industrial minerals opportunities in Quebec. The Corporation intends also to acquire advance stage industrial minerals exploration properties in its portfolio in the future. The Corporation is led by a determined management and technical team with extensive exploration and mine production experience.

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 use of proceeds, 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.

Contact Information

  • Focus Metals Inc.
    Gary Economo
    President and Chief Executive Officer
    613-691-1091 Ext.101
    gary@focusmetals.ca