Northern Graphite Corporation is a mine development company based in Ottawa Canada that recently listed on the TSX Venture Exchange (ticker: NGC) and also trades on the OTCBB (ticker: NGPHF).
The company’s principal asset is the Bissett Creek graphite project located 100km east of North Bay, Ontario. Its proximity to the Trans Canada highway between Ottawa and North Bay and the extent of existing infrastructure make the site a feasible source of high quality flaked graphite in the very near future. The statutory NI 43-101 Preliminary Economic Assessment Report has been completed on the project and the company has subsequently initiated a bankable final feasibility study and commenced the environmental and mine permitting process. The NI 42-101 report modelled a 40 year mine life producing 20,000 tonnes of graphite each year with payback on investment occurring in within 6 years. Northern anticipates that it will be in a position to begin construction of the mine early in 2012, subject to positive results from the final feasibility study and the availability of financing.
On September 20th 2011, Northern Graphite Corporation announced a substantial potential increase in the projected resources of the Bissett Creek mine. Based on the results of a 51 hole drilling exploration of the area, the new resource represents a 44% increase in contained graphite and a 117% in graphite in the inferred category. The find indicates that the mine can be scaled to a higher level in order to meet increasing demand. Gregory Bowes, CEO, We believe the size, scalability and the very high percentage of large flake graphite in the Bissett Creekdeposit make it unique in the world.”
Northern Graphite Corporation’s website notes how graphite prices have almost tripled since 2005. The increase in price is likely to increase as new applications for graphite emerge: these include use in the manufacture of lithium-ion batteries, fuel cells and nuclear power, and of course graphene. With China producing 80% of the world’s supply of graphite and the institution of export taxes and a licensing system, graphite and the rare earth elements share the same “security of supply” issues that have prompted the European Union and the USA to name graphite a supply critical mineral.
A recent Byron Capital Research Report suggests that with the known metallurgy, current infrastructure and relatively low capital expenditure and time to production, the Bissett Creek mine has a minimized level risk and is expected to generate $19.5 million gross profit in 2013.
Similarly, Union Securities Ltd has awarded a strong buy recommendation on shares in Northern Graphite Corporation with a target price of $2.
With limited worldwide exploration and few potential development projects on the horizon, the Company is well positioned to benefit from the continued improvement in graphite demand and prices.
Northern Graphite CorporationCA:NGC +15.39% (otcqx:NGPHF) is pleased to announce that it has agreed to supply its +48 mesh and +32 mesh extra large flake graphite to Grafen Chemical Industries for graphene research and has also agreed to enter into a cooperation agreement to develop intellectual property rights. Northern will retain a 50% interest in the North American patent rights to any products and processes developed by Grafen.
Grafen has developed a novel fabrication method allowing it to synthesize graphene of excellent quality and with considerable yield. Its graphene production process is a highly modified implementation of the conventional graphite oxide manufacturing technique and eliminates known major drawbacks such as extreme disruption of crystal structure of precursor graphite causing low product qualities of electrical conductivity, mechanical performance etc.
Grafen is testing its process at the lab/pilot plant scale level and is optimizing and improving the process by employing different raw materials and formulations. Grafen recognizes that Northern’s +32 and +48 mesh large flake, high carbon graphite will be an excellent choice for large area graphene preparation and intends to adapt them to its process. In a near future Grafen plans to scale-up its graphene production process to provide products to the research industry that will eventually lead to commercial scale production.
Northern has already had graphene made using large flake graphite from the Company’s Bissett Creek project in Northern Ontario, (see July, 2011 Press Release), by an eminent professor in the field at the Chinese Academy of Sciences who is doing research making graphene sheets larger than 30cm2 in size using the graphene oxide methodology. The tests indicated that graphene made from Northern’s jumbo flake is superior to Chinese powder and large flake graphite in terms of size, higher electrical conductivity, lower resistance and greater transparency.