Focus Graphite Reports Updated economic results of its Preliminary Economic Assessment 2012

 

Focus Graphite Reports Updated economic results of its Preliminary Economic Assessment 2012

 Internal Rate of Return on 36,4 % or pre-tax. on 28,6 % increased after tax

 Kapitalwert von 317 Million $ or pre-tax. of 185 Million $ after tax, on the basis of at 8 % discounted cash flows

 operating costs by 367 $ pro verarbeitete Tonne verringert; Processing costs of 68 $ per tonne processed

 Cost of now 458 $ Tonne for Konzentrat

 reduction in working capital 28 Million $ in connection with the processing costs

OTTAWA (Ontario), 7. November 2013. Focus Graphite Inc. (TSX-V: FMS; OTCQX: FCSMF; ESF: FKC) ("Focus" or the "Company") is pleased, the results of an updated positive Preliminary Economic Assessment („PEA“) for its Lac Knife graphite project ("Lac Knife" oder das "Project") to announce. The property is located approximately Lac Knife 27 Kilometers southwest of Fermont (Quebec). This update is based on improved metallurgical results of recent testing program at a pilot plant using an optimized flotation- and grinding circuit at SGS Lakefield and was on 21. August 2013 reported.

The increase in concentrate grades and any related economic outcomes were updated in the summary of the cash flow of the project and of RPA Inc. in consultation with Soutex Inc. confirmed from Québec City. Included the updated entries of the financial model: an increase of the average salary of the final concentrate of 92 on 96,6 % Ct within the new categories of flake size distribution, a reduction in operating costs 367 $ per tonne processed, since the concentrate does not need to be refined by a third party, as well as any related working capital requirements of 27.600.000 $. The price determination is based on "sponsorship awards" without the value added price, which was used in the original financial model of the PEA. The original report was on 29. October 2012 submitted.

The Lac Knife project has in the base case using a weighted average price of 1.866 U.S. $ per tonne of concentrate feed an internal rate of return of 36,4 % before tax (28,6 % after tax) and a capital value of 316,9 Million $ before tax (185,3 Million $ after tax) on. The cost of production is located 458 $ Tonne for Konzentrat.

The highlights are summarized below:

To view the entire press release, please follow the link:

http://www.irw-press.com/dokumente/FG_081113_DE.pdf

Don Baxter, P.Eng., President und Chief Operating Officer, said: "The latest results of the pilot plant are key to the potential economic feasibility of Lac Knife. The results show, flakes through the entire concentrate 200 Mesh at a rate of 98 % Ct can be produced, finishing with a third party, which was provided in our original PEA study, not necessary. Most companies in the industry to produce lower grade graphite fines, that are hard to sell. Lac Knife has the potential to, Focus graphite products for new markets to open in small flakes with technology levels. "

"The updated PEA indicates, Lac Knife that given the current prizes in today's market has enormous economic potential ", soft Herr Baxter.

Gary Economo, CEO von Focus, said: "Given the recent excellent metallurgical results from the pilot plant Lac Knife, and the updated key parameters in this press release, the project could be one of the lowest cost producers in the world graphite. The feasibility study has commenced in bringing us the financing, the signing of purchase agreement, the permit and the construction a step closer. "

In connection with the planning of the feasibility of the development of Lac Knife Focus continues to develop value-added products for technology markets. These products are spherical graphite for lithium-ion batteries as well as expanded, include refined and micronized graphite for powder metallurgy and composite materials. These graphite products for applications with technology salary can average prices of 10.000 $ sold per ton. Focus’ Work in this area is progressing well and provide promising results. Value-added products as well as their costs and selling prices were not included in the updated average price determination in the PEA.

Operational Highlights:

• Service life of the open pit mine 20 Years, with an annual production of 300.000 Tons

• production during the mine life of 6,0 Million tons (Mt) with a content of 15,66 % Grafitkohle, based on the first mineral resource estimate of * 19. January 2012

• The processing involves crushing, milling, the flotation, magnetic separation, the thickening and the drying of material supported, at 44.300 Tonnes of concentrate per year (tpa) to produce. The decline of 2.300 Tonnes of concentrate is mainly due to the higher concentrate grade.

• Average cost of maintenance 996.300 $ per year

• production during the mine life of 880.877 Tonnes of concentrate 96,6 % Ct

Updated sensitivity analysis:

To view the entire press release, please follow the link:

http://www.irw-press.com/dokumente/FG_081113_DE.pdf

A copy of the report and PEA PEA report dated 29. October 2012 can be accessed on the website of Focus Graphite under www.focusgraphite.com.

The updated cash flow model of the PEA before tax deduction based on a constant dollar basis of the year 2012; an increase was not provided. The applied model for the potential Prices do not include value added products, currently being developed by the company.

* Reference: This PEA for RPA meets the requirements of a Preliminary Economic Assessment in accordance with the provisions of NI 43 101. The economic analysis in the technical report is partly based on Inferred Resources, and is conceptual in nature. Inferred resources are considered too speculative geologically, queue for mining technical and economic considerations or in order to be classified as mineral reserves can. There is no certainty, that the reserve development, production and economic forecasts, based on which the PEA, A reality.

This press release was written by Don Baxter, P.Eng., President and COO of the Company and a "qualified person" within the meaning of National Instrument ("NI") 43-101, tested.

About RPA:

RPA Inc. is a group of engineering professionals, the mining industry for almost 30 Years are to advise. During this time, RPA developed into a renowned company, as the resources for the company- and reserve work is considered. RPA offers the mining industry services for all phases of project development - from exploration- and resource assessment to scoping, preliminary feasibility studies, Feasibility studies, Financing, Permits, Erections, Operated, Statements and restoration. Our regular clients include institutional banking customers (Liabilities and equity), Authorities, large mining companies, Explorations- and development company, Law firms, Individual investors and private equity projects.

Über SGS Metallurgical Services (Lakefield)

SGS Canada Inc. („SGS“) is a global leader in the development of concentrator flowsheets and pilot plant test programs. SGS’ Department of Metallurgical Services was founded over half a century. His metallurgists, Hydro metallurgists and chemical engineers can at all important physical and chemical separation processes, used in all parts of the world during the extraction of resources contained in concession areas metals and minerals, has many years of experience.

The information contained in this press release, technical and economic information related to the PEA were by Marc Lavigne, M.Sc., Ing., Senior Mining Engineer von RPA, und Pierre Roy, M.Sc., P.Eng., Ing., Senior Metallurgist Specialist von Soutex, reviewed and approved. These are independent "qualified persons" as defined in NI 43-101.

The information generated by SGS in conjunction with the metallurgical test program, provided in this press release, were by Oliver Peters, M.Sc., P.Eng., MBA, a consulting metallurgist at SGS Canada Inc., reviewed and approved. Mr. Peters has extensive experience in the development of metallurgical processes and managed the bulk of the graphite test programs, the SGS was performed in recent years.

Über Focus Graphite

Focus Graphite Inc. is an emerging, medium junior mine development company and a developer and provider of technology solutions and business innovation. Focus is the owner of the Lac Knife graphite deposit, The region is located in the Côte-Nord in the north east of Quebec City. The Lac Knife project hosts NI 43-101 compliant indicated mineral resource of 4,9 Million tons, where 15,8 % graphitic carbon (CGR) is in the form of crystalline graphite, and inferred mineral resources * in the amount of 3,0 Million tonnes 15,6 % Cgr in the form of crystalline graphite. The aim of focus is, to be a leading market position as a low cost producer of high-quality graphite technology. At the 29. October 2012 the company released the results of a preliminary economic assessment („PEA“) für das Projekt Lac Knife, in the project a very positive potential was certified for the production of graphite. As a technologically driven company, has set itself the goal, to secure its long-term shareholder value solid, Focus ist durch Grafoid Inc.. involved in the development of applications and patents graph.

Disclaimer Regarding Forward-Looking Statements

This press release contains forward-looking information under the provisions of Canadian securities legislation. All information contained herein, are not clearly historical in nature are, may constitute forward-looking information. In general, such forward-looking information can be identified by the use of forward-looking terminology, such as: „plant“, "Expected", "Not expected", "Expected", "Budgeted", "Estimates", "Forecasts", "Intends", "No intention", "Believes" or variations of such words and phrases, or by statements, that certain actions, Events or results "may", "Might" or "will". Forward-looking information is subject to known and unknown risks, Uncertainties and other factors, which could cause, that could cause actual results, Activities, Performance or achievements to differ materially from those, which were explicitly or implied by such forward-looking information expressed, including, but not limited to: (i) volatile share prices; (ii) of global markets and the economy; (iii) the possibility of depreciation, amortization and impairment; (iv) the risks associated with the exploration, the development and operation of mineral deposits; (in) the risk associated with the acquisition of ownership rights to mineral properties and assets; (we) risks related to joint ventures; (vii) Fluctuations in commodity prices; (viii) the risks associated with non-insurable risks, during the exploration, Could occur exploration and production; (ix) the competition for the resulting issuer in securing experienced personnel and financing; (x) access to an appropriate infrastructure to support the degradation, processing, the development and exploration; (xi) the risks associated with changes in the mining regulatory provisions for the resulting issuer; (xii) the risks associated with the various environmental regulations, which is subject to the resulting issuer; (xiii) the risks associated with regulatory and permit-related delays; (xiv) Risks associated with potential conflicts of interest; (xv) the reliance on key personnel; (xvi) Liquidity risks; (xvii) the risk of potential dilution through the issuance of common shares; (xviii) des binders, that the company does not anticipate the decision of the dividends in the short term; (xix) the risk of litigation; and (xx) of Risikomanagements.

Forward-looking information is based on assumptions, our management believes at the time the statements are statements to be reasonable, including but not limited to, the ongoing exploration work, the lack of significant changes in metal prices, Explorations- and development plans, carried out according to plan and deliver the appropriate results, obtaining necessary regulatory approvals and other assumptions and factors, the herein described. Although the Company has attempted, identify the important factors, which could cause, that actual results to differ materially from those in forward-looking statements as a, It may still be factors, which could cause, that the results are not as expected, estimated or intended. There can be no assurance, that such forward-looking information will prove to be correct; actual results and future events could differ materially from such forward-looking information. Such forward-looking information has been provided, to investors to help, the business, to understand the operations and exploration plans of the company, and for other purposes may not be suitable. The reader should not place undue reliance on forward-looking information. Forward-looking information is expressed as of the date of this press release, and the company is not obliged, to update such forward-looking information, unless, This is in accordance with applicable securities laws.

Contact:
Don Baxter, P.Eng.
President und Chief Operating Officer
705-789-9706
dbaxter@focusgraphite.com
www.focusgraphite.com

For the correctness of the translation is any liability assumed! Please note original English message!

Which filings can be found at:
http://www.irw-press.at/press_html.aspx?messageID=29244

(Those: IWR-Press.at)

 

This entry was posted in News, News of the corporations, the rare earth metals and and tagged , , , , . Bookmark the permalink.

Comments are closed.