Canada Carbon Inc. – Purity Redefined
Canada Carbon Inc. (TSXV:CCB) is a graphite focused exploration company with three strategic 100% owned properties in Quebec. It is currently focused on its Miller and Asbury projects, which were past producing mines. Although most projects in the graphite space tend to target flake graphite, Canada Carbon’s Miller deposit is unique in that it holds a rarer form of hydrothermal lump-vein (HLV) graphite.
At Miller, Canada Carbon has been able to produce very high purity graphite concentrate from flotation recovery alone – without the need for further costly chemical processes. The company began pilot-scale processing of graphite material from the Miller property to generate increased quantities of concentrate for evaluation in September of 2014.
As a potential, near term North American graphite supplier, Canada Carbon is well positioned to take advantage of increased demand from events such as the building of Tesla Motors’ gigafactory.
INVESTMENT HIGHLIGHTS
- Properties are 100% owned by Canada Carbon and located in the mining-friendly jurisdiction of Quebec
- High-purity, at-surface and shallow hydrothermal lump-vein (HLV) graphite deposit at Miller
- 100% C(t) graphite purity from flotation recovery alone, making for low-cost, more environmentally friendly concentrate production
- Existing rail, road and power infrastructure at Miller, opportunities to expand infrastructure with little environmental impact
KEY PROPERTIES
MILLER GRAPHITE PROJECT
Located approximately 80 kilometers west of Montreal in the township of Grenville, the Miller graphite project comprises approximately 100 square kilometers, including the historical Miller mine and surrounding area. The project is 100 percent owned by Canada Carbon.
The Miller project holds a rare hydrothermal lump-vein (HLV) graphite deposit. The past-producing mine at Miller was worked around 1845, and was likely the first graphite mine in Canada. The project features extensive infrastructure, including a highway that crosses through the property, an access road to the mine entrance and a nearby rail line, making the property amenable to low-cost development. Furthermore, a river passes through the property and is accessible 250 meters north of the worked area.
Miller is also partially located on private land, which means that the timeline is significantly reduced in terms of administrative processes needed to obtain government authorization for activities such as tree cutting, drilling and trenching.
During metallurgical testing on a 50 kg composite of HLV graphite from Miller over the summer of 2014, Canada Carbon released results indicating the production of 99.7% C(t) purity graphite. This was achieved through simple flotation and polishing techniques that are commonly employed in the natural graphite industry, and without further chemical treatment.
Summary Statistics Derived from GD-MS
| SAMPLE | PURITY C(t) %3 AS RECEIVED | PURITY C(t) % AFTER RTU* | EBC(PPM) AS RECEIVED | EBC(PPM) AFTER RTU |
|---|---|---|---|---|
| + 32 MESH | 99.78 | 99.83 | 2.18 | 2.61 |
| +48 MESH | 99.75 | 99.9 | 1.72 | 1.63 |
| +65 MESH | 99.90 | 99.98 | 1.18 | 1.35 |
*Rapid Thermal Upgrading
On June 4 2014, the company announced that it had achieved 100% C(t) graphite purity, again by flotation concentration alone, and at the end of June, it reported that its graphite met international purity standards of equivalent boron content, meaning that Canada Carbon has the potential to ship nuclear graphite.
The company will need to ensure that it meets further permitting, licensing, and reporting requirements for bulk international shipments. Canada Carbon’s management, as well as its technical and legal advisors, have been working with several Canadian government agencies in order to ensure full disclosure and compliance with all applicable legislation and international trade agreements.
Currently, Canada’s National Research Council (NRC) is conducting research on a roughly 250 gram high-purity graphite sample produced by Canada Carbon from Miller. The NRC has requested multiple samples of Miller Graphite Concentrate in order to “conduct fundamental research with respect to its properties, and potential applications.”
In August 2014, Canada Carbon released further positive results indicating that graphite from the property that was processed by flotation matched and exceeded several properties of synthetic graphite.
| MEASURED PROPERTY | MEASURED VALUE | SYNTETHIC |
|---|---|---|
| Tap (bulk) Density | 0.965 g/cm3 | Approx. 1.0 g/cm3 |
| Skeletal Density | 2.12 g/cm3 | Up to 2.26 g/cm3 |
| B.E.T. Surface Area (uncoated) | 2.227 m2/g | 2.77 – 19.38 m2/g |
| Porosity | 7.20% | 14-21% |
| Graphite Purity, flotation concentration only | 99.39 % C(t) | >99.0% C(t) |
| Equivalent Boron Content, flotation concentrate | 1.26 ppm | N/A |
| Graphite Purity, after brief thermal treatment | 99.74% C(t) | >99.0% C(t) |
| Equivalent Boron Content, after thermal treatment | 1.34 ppm | N/A |
Vice President for GD-MS Services for Evans Analytical Group, Dr. Karol Putyera, stated, “I have been working in graphite characterization studies for many years, and the Miller graphite exhibits a collection of properties that I have never before observed, and has proven to be superior to synthetic graphite with respect to crystallinity, B.E.T. surface area, and surface porosity. Synthetic graphite is typically engineered to optimize one property, or perhaps a group of properties, but generally at the expense of other properties. The Miller samples exhibit very high-crystallinity, are easily upgraded to very high purity, have low surface area, with high density, and low porosity, all in one package.”
In September 2014, Canada Carbon commenced pilot-scale processing of graphite material from the project in order to provide larger quantities of graphite concentrate to be used for evaluation and engineering studies. Operations at the pilot plant will also be studied to optimize the design of a future full-scale graphite mill at Miller.
Exploration
To date, Canada Carbon has conducted extensive exploration and purity testing at Miller, including multiple drilling, trenching and sampling programs, and has identified multiple occurrences of graphite mineralization over a small area in the vicinity of the past-producing Miller mine.
The company intersected 32.45 percent graphitic carbon over two meters in drilling and 28.2 percent graphitic carbon over 1.3 meters in channel samples. Collectively, the results of that exploration program suggest that the graphite and wollastonite mineralization exposed at surface at Miller extend to a depth of 39 meters, with deeper extensions of the mineralization suggested by drill core observations remaining untested.
In August 2014, Canada Carbon reported that it had further expanded the testing area with Induced Polarization (IP) surveys as results indicated further graphite mineralization. Trenching and/or stripping was carried out on anomalies detected during the IP survey, and highlights of findings included discoveries of the following:
- Multiple graphite veins of over 1 meter in width resulting from trenching over one anomaly
- A former exploration pit showing graphite vein mineralization
- A 20 centimeter block of lump graphite
- A subcrop of marble, pegmatite and graphitic skarn showing mineralization similar to that of the historic Miller mine.
The company continues to carry out trenching over new anomalies on the property in order to quickly find surface indicators that may be associated with the anomaly sources.
Currently, Canada Carbon is also selecting locations for a Phase 1 drill program in order to test the most significant anomalies generated by its two IP surveys and trenching programs. Four hundred meters of drilling in seven different drill holes has already been selected.
Graphite Quality
In addition to being amenable to low-cost development due to the shallow mineralization of the deposit, the Miller project will likely garner low production costs due to relatively low levels of treatment required to produce high-purity graphite. Canada Carbon has received results from metallurgical testing at Miller, and has achieved exceptional flotation results for graphite from the deposit.
Typically, graphite production requires flotation to produce a concentrate, which is then subjected to chemical and/or heat treatments to further increase the purity of the graphite. However, Canada Carbon has achieved exceptional graphite purities from flotation alone, meaning that the HLV graphite from Miller may not require further costly processing steps.
HLV Graphite and Lithium-ion Batteries
Traditionally, for applications such as solar panels, fuel cells, electronics and lithium-ion batteries flake graphite is understood to be preferable. However, Canada Carbon CEO Bruce Duncan has pointed out that other types of graphite, including HLV, can be blended with flake graphite to produce materials required by battery producers. Mr. Duncan points out that “Canada Carbon’s HLV graphite begins with a higher crystallinity, and will require minimal processing to produce the desired particle sizes.”
Canada Carbon intends to perform testing in order to determine how its HLV graphite performs in lithium-ion cells.
Graphite Exfoliation
Graphite exfoliation is used to produce graphene from natural flake graphite, not lump graphite. However, in preliminary lab work, HLV graphite from Canada Carbon’s Miller deposit “spontaneously exfoliated in a common industrial solvent,” suggesting a strong possibility for the production of a graphene product. Furthermore, the HLV graphite at Miller features high purity and high crystallinity, making it even more promising for graphene production.
Duncan said in June 2014 that Canada Carbon’s research partners are investigating the potential of such a process.
Asbury
Located 8.1 kilometers northeast of Notre-Dame-Du-Laus in Quebec, The Asbury Graphite Mine consists of two claims and comprises 119 hectares. the project is 100 percent owned by Canada Carbon.
Furthermore, historical prospecting, including electromagnetic surveys and exploration drilling, has confirmed that large conductive bodies of graphitic rock are hosted on the property.
Further follow up work on Asbury would include exhaustive map compilations of geophysical surveys and historical drilling on the property and a detailed geophysical survey to complete and confirm historical data. This would be followed by a drill program to test priority targets.
Dun Raven
The Dun Raven property is located near the township of Thorne in Quebec and is easily accessible.
The property features a historic resource of 571,532 tons grading 4.72 percent graphite, based on historic drilling over a geophysical anomaly that was only partially completed. Roughly 75 percent of the anomaly remains to be drilled, leaving a promising exploration upside for the project.
SUMMARY
Canada Carbon is rapidly advancing exploration and flotation testing at its 100 percent owned Miller Graphite property. With existing infrastructure and a high quality hydrothermal lump graphite deposit, the Miller project features a strong exploration upside. Recently, Canada Carbon began operating its pilot-scale flotation plant in order to provide more material for evaluation and testing of the graphite at Miller, with data from pilot plant operations also slated to support the design of a full-scale graphite mill.
Furthermore, Canada Carbon holds 100 percent ownership in three other graphite properties in Quebec, including the site of the previously producing Asbury mine and the Dun Raven property, which holds a historic graphite resource. Having a management team with strong experience in both the exploration mining and electric vehicle battery industries, Canada Carbon remains poised to take advantage of increasing demand for graphite from the lithium-ion battery market.
MANAGEMENT
Mr. R. Bruce Duncan – Executive Chairman & Chief Executive Officer
Mr. Duncan brings to Canada Carbon Inc. over thirty years of experience in the capital markets and brokerage industry. He is the Principal of West Oak Capital Partners Inc., which provides strategic advisory services, including identifying and qualifying merger and acquisition candidates and advising in public transactions. Mr. Duncan’s client base at West Oak Capital Partners has included financial services, aviation, mining, oil and gas, logistics, and retail industries. Mr. Duncan currently sits on the boards of several private companies and is the CEO of Evolving Gold Corp., (EVG:CSE), CEO of Canada Coal Inc., (CCK:TSX-V), an Independent Director of GeoNovus Minerals Corp., (GNM:CSE) and the former CEO and Director of Prosperity Goldfields Corp. (PPG:TSX-V). Mr. Duncan also has extensive experience advising corporate clients on takeovers, both friendly and hostile, either by designing and executing effective approaches to acquiring assets or by implementing defensive strategies.
Olga Nikitovic, CPA, CA – Chief Financial Officer
Ms. Nikitovic is a Chartered Accountant and management consultant with 30 years of work experience. Ms. Nikitovic worked at PricewaterhouseCoopers for 9 years in both the audit and management consulting departments. While consulting, Ms. Nikitovic specialized in re-engineering and cost management. After leaving PricewaterhouseCoopers Ms. Nikitovic held senior management positions with two of Canada’s largest retailers. At present, Ms. Nikitovic is the Chief Financial Officer for a number of private and publicly traded mining companies.
Greg Lipton, P.Geo – Director
Mr. Lipton is a registered Professional Geoscientist with the Association of Professional Geoscientists of Ontario (APGO), and a long-time member of the Prospectors and Developers Association of Canada (PDAC). Mr. Lipton has more than 33 years of field experience in international exploration for base metal, precious metal, diamond, and industrial mineral deposits, most of which was with BHP International and Utah International as a Senior Geologist. Mr. Lipton has worked many and varied geologic environments including porphyry, epithermal, VMS, MVT, BHT, and Sedex types in North, Central, and South America, Africa, Australia, Southeast Asia, and the Middle East. Mr. Lipton has been a frequent speaker at professional conferences and at seminars, and has authored and co-authored numerous technical papers. Mr. Lipton was previously President, CEO and Director of Metallum Resources Inc. (TSXV:MRV).
Bruce Coventry – Director
Mr. Coventry brings more than 35 years experience in the automobile industry to his position on the Board. He has held senior management positions with General Motors, Ford, Chrysler, Global Electric Motorcars and Dresser, Inc. Mr. Coventry was previously CEO, Nostrum Motors, a wholly owned subsidiary of Nostrum Pharmaceuticals as well as VP Operations, Electrovaya Inc., in Mississauga, ON. Electrovaya designs and manufactures Lithium Ion Super Polymer batteries, battery systems and battery-related products for clean electric transportation vehicles. From 2005 to 2009, Mr. Coventry held a Board position with Global Engine Manufacturing Alliance, a joint venture between Chrysler, Hyundai and Mitsubishi. Currently, he sits on the Board of Trustees of Kettering University in Flint, MI. Following his graduation from Kettering University in 1975, Mr. Coventry obtained an MBA from Michigan State University in 1991.
http://www.canadacarbon.com/press-releases
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