Graphite One Inc. [TSX-V: GPH | OTCQB: GPHOF] (“Graphite One” or the “Company”) is exploring, with the intent to develop its Graphite One Project (the “Project”), whereby the Company could potentially become the dominant American producer of high grade Coated Spherical Graphite (“CSG”) that is integrated with a domestic graphite resource. The Project is proposed as a vertically integrated enterprise to mine, process and manufacture high grade CSG primarily for the electric vehicle lithium-ion battery market. Graphite mineralization mined from the Company’s Graphite Creek Property (the “Property”), situated on the Seward Peninsula about 55 kilometers (37 miles) north of Nome, Alaska, would be processed into concentrate at a mineral processing plant (the “Processing Plant”) to be located adjacent to the mine. The graphite concentrate would be shipped to the Company’s proposed product manufacturing facility (the “Manufacturing Plant”) where CSG and other value-added graphite products would be manufactured. Its location is subject to further study and analysis.
The Property’s graphite mineralization has been discovered to be exceptionally unique and distinct from other known graphite materials because it naturally exhibits the morphological characteristics of an already processed material. To highlight these unique properties, the Company has branded Graphite Creek graphite as “STAX GRAPHITE” and designated it as: “S”, as in Spheroidal; “T”, as in Thin; “A”, as in Aggregate; and, “X” as in Expanded. The Company registered the trademark “STAX®” in the United States and Canada in association with Graphite Creek graphite.
The Project’s Preliminary Economic Assessment (the “PEA”), originally released in February 2017 and revised in July 2017, projected the following, based on information from studies completed to date and documented assumptions:
- sufficient resources exist for a project life of 40 years;
- 55,350 tonnes per year of manufactured graphite products, once full production is reached in the sixth year after start up; and,
- the Project’s resources are potentially economically viable with an estimated after tax net present value of $616 million (10% discount rate), internal rate of return of 22% and payback in the fourth year of production (see Table 1).
Table 1: Project’s PEA Post-Tax Results
|Summary of the Project’s Post-Tax Financial Results (US$ Million)|
|NPV of Net Cash Flow (10% Discount Rate)||$616|
|Internal Rate of Return||22%|
|Payback Period in Production Year||4|
The independent qualified persons responsible for preparing the Graphite One PEA are R. James Robinson, P.Geo., Ioannis (John) Roumeliotis, Ing., and Maureen Paterson, P. Eng. of TRU Group Inc.
The Property contains America’s largest known large flake graphite deposit. The estimated mineral resources identified in the PEA were updated following the 2018 field program in the report entitled "2019 NI 43-101 Mineral Resource Update for Graphite Creek, Seward Peninsula, Alaska, USA" dated May 2, 2019. This update is summarized in Table 2 highlighting the quantity of contained graphite.
Table 2: Project's Estimated Resources - Updated May 2019
|Graphite Grade (% Cg)||Contained Graphite (Tonnes)|
|Measured + Indicated||5.0||10.95||7.8%||850,534|
|*Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no guarantee that all or any part of the indicated or inferred mineral resource will be converted into a mineral reserve. The collective work to date from the Graphite Creek Property indicate that while the project is in early stages of exploration/resource work that indications of the size and grade of the graphite give suggestions that they are of high enough concentration to be of economic interest.|
The 2019 mineral resource estimate was prepared by Chris Valorose, M.Sc., MAusIMM of Valorose Consulting, Inc. Mr. William Ellis, P. Geo, with Alaska Earth Sciences, Inc. provided oversite to the 2018 drilling and sampling program. Mr. Ellis is a “Qualified Person” under NI 43‐101 and reviewed and approved the 2019 NI 43-101 Resource Update.
The Company believes the Project is well positioned to supply the growing demand for high performance battery anode materials. Key features of the Project demonstrated to date include:
- A large, high quality graphite resource;
- Resources that are potentially economically viable with robust economics;
- High purity spherical graphite produced to date in tests with high yields, using less milling energy;
- High performance CSG meeting electric vehicle battery specifications produced in tests; and,
- Resources in an historic mining area and pro-development state.
The Project's Pre-Feasibility Study is planned for completion in mid-2021.
This website was updated in March 2021.