Alabama Graphite drills 105 ft of 4.12% Cg at Coosa

Jun 24, 2015

ALABAMA GRAPHITE RECEIVES INITIAL ASSAY RESULTS FROM THE ONGOING DRILL PROGRAM AT ITS COOSA PROJECT, ALABAMA, USA

Alabama Graphite Corp. has received initial assay results from its continuing drilling program conducted at its flagship Coosa project. The purpose of the drill program was to expand the oxide resource through step-out drilling to the northeast, southeast and southwest.

All of the reported drill holes are on the northeast margin of the Coosa resource. Because the Coosa resource trends northeast-southwest, drill holes AGC-15-K18 and -K20 helped to define the southeastern margin of the graphitic mineralization. The remaining holes are either step-out or infill holes proximal to holes previously drilled by Alabama Graphite.

Drilling was performed by 3D Dycus Drilling of Wyethville, Va., using a diamond core drill. The core was sampled and logged by Alabama Graphite personnel at the company’s Sylacauga facility. ActLabs of Ancaster, Ont., conducted the assay work. Samples were collected on five-foot intervals with the majority of the holes drilled perpendicular to foliation. Quality assurance/quality control protocols were recently reviewed by Metals Mining Consultants of Highlands Ranch, Colo. In keeping with the company’s environmental commitment, drill sites are levelled and reclaimed after drilling.

The table summarizes the results from the drill holes.

                            COOSA DRILL RESULTS

               Total  Average  Oxidized   Oxidized                Average
Drill hole     depth       Cg      zone         Cg  Key interval       Cg
                 (ft)      (%)      (ft)        (%)          (ft)      (%)

AGC-15-E13       150     2.53        45       3.05       5 to 40     3.51
AGC-15-F15       150     2.46        60       2.76      25 to 55     3.79
AGC-15-H14       132     3.05        53       2.89     70 to 105     3.83
AGC-15-H16       150     3.04        60       2.87      30 to 85     4.30
AGC-15-H22       150     3.04        55       2.59     50 to 115     4.04
AGC-15-I19       190     1.04        45       2.30      10 to 25     2.72
AGC-15-I21       195     3.77        45       2.93     45 to 150     4.12
AGC-15-J11       150     3.61        50       5.34       5 to 45     6.12
AGC-15-J15       150     3.83        40       2.87     45 to 115     4.67
AGC-15-K13       150     2.90        70       3.26      35 to 70     3.95
AGC-15-K18       145     1.46        47       1.56           NSV      NSV
AGC-15-K20       100     0.37        36       0.30           NSV      NSV

Preliminary metallurgy performed on trench samples from this area shows favourable results. A composite sample from trench TR-03a with an average grade of 3.10 per cent graphite contained 33.9 per cent of the graphite in the plus-80-mesh range. A second composite sample from trench BT-4 with an average grade of 2.94 per cent Cg contained 21.8 per cent of the graphite in the plus-80-mesh range. These results were previously reported in news releases dated Feb. 15, 2015, and May 26, 2015, respectively.

“We are encouraged by these first results from our drilling program,” stated Ron Roda, president and co-chief executive officer of Alabama Graphite. “Not only do they extend the limits of the graphitic mineralization to the northwest, but they are of a higher graphitic content than what we expected to see from this area. We expect to issue more drill results over the next several weeks as the drill program progresses. Our goal is to have an updated resource estimate completed before the end of summer as we move toward completing a preliminary economic assessment (PEA) on the Coosa project by the fall of 2015.”

Rick Keevil, PGeo, vice-president of project development, a qualified person as defined by National Instrument 43-101, has approved the disclosure of the scientific or technical information concerning the Coosa property contained in this press release.

http://alabamagraphite.com/news/