Manganese X Energy enters into agreement to acquire Lac Aux Bouleaux (LAB) Graphite Property in Québec, Canada
TSX VENTURE: MN
Montréal, Québec--(Newsfile Corp. - July 11, 2019) - Manganese X Energy Corp. (TSXV: MN) (FSE: 9SC2) (TRADEGATE: 9SC2) (OTC Pink: SNCGF) ("Manganese" or the "Company") is pleased to announce that it has entered into an agreement to acquire 100% beneficial interest in Lac Aux Bouleax Graphite property (LAB Graphite Property) in Quebec. The Property consists of 14 mineral claims in one contiguous block totaling 738.12 hectares near the town of Mont-Laurier, on NTS 31J05 in southern Québec. The transaction is subject to TSX approval.
The Company has completed an updated NI 43-101 technical report July 8th 2019 which describes historical exploration work on the property and will be filed on Sedar. The report notes:
- that past exploration results intersected significant graphite mineralization in drill holes and trenches
- preliminary metallurgical results returned very good results with recoveries up to 96%
- The high percentage of large flake graphite is positive for a high quality, premium priced product.
- infrastructure is excellent with road access and electrical power on site; and
- that the property is located contiguous to TIMCAL's Lac des Iles graphite mine.
The LAB Graphite Property lies contiguous to the south of TIMCAL's Lac des Iles graphite mine in Quebec which has the production capacity of 25,000 tonnes of graphite annually. There are several graphite showings and past producing mines in its vicinity. Graphite is commonly found in the Grenville Province rocks throughout this region and has been commercially mined from a number of deposits located between Mount Laurier in the north to the Ottawa River in the south.
Cautionary Statement: Investors are cautioned that the above information has been taken from the following websites https://mern.gouv.qc.ca/english/mines/quebec-mines/2015-11/graphite.asp and http://www.imerys-graphite-and-carbon.com/ The information is not necessarily indicative of the mineralization on the Lac Aux Bouleaux Graphite property.
The Property is considered favourable for exploring large flake graphite mineralization which is commonly associated with paragneiss in regular banding which is conformable to the bedding. Graphite is also located in shear zones at the contact of gneisses and marble where the graphite content usually ranges from 2% to 13% graphitic carbon (Cg) and exhibits flakes up to 3 millimetres (mm) in diameter. Large flake graphite is generally considered as 0.2 mm and above.
The LAB graphite mineralization was discovered in 1957 by two prospectors, Mr. Phraz Arbic and Dr. L.J. LaRue. Since its discovery in 1957, exploration work has been conducted by various operators until 2018.
During 1981-83 period, Orrwell Energy Corp. acquired 539 hectares of ground in 12 surveyed parcels (within the current LAB Graphite Property claim block) and completed an exploration work program consisting of a ground electromagnetic geophysical survey, 79 diamond core drill holes totalling 19,550 feet (5,958 metres) drilling, and resource estimation work. The resource estimation resulted in a historical resource of 1,320,847 tons at 9% Cg, or 1,452,932 tons at 8% Cg (Source: Douglas Parent 1982, MRNF report GM46736).
(Note: A Qualified Person has not done sufficient work to classify the historical estimate as current mineral resources. The Company is not treating historical estimate as a current mineral resource or reserve. The historical resources were calculated by block models using different cut-off grades, and a specific gravity of 2.76. The Company believes that the historic estimate is relevant to an appraisal of the merits of the property and forms a reliable basis upon which to develop future exploration programs. The Company will need to conduct further exploration which will include drill testing the project, and there is no guarantee that the results obtained will reflect the historical estimate. The historical estimates should not be relied on).
In 2015, Goldport Resources completed a 281 line kilometers airborne magnetic (MAG) and electromagnetic (EM) survey on the Property. MAG survey identified several east-west running structures and lineaments which are bounding potential EM target areas. A total of seven potential target areas were identified through interpretation of EM survey.
In 2015-16, preliminary metallurgical tests resulted in overall graphite recoveries from 89.6% to 96.2% with concentrate grades between 88.3% to 91% C(g). The test work indicates that 30% of the total graphite was recovered in the +48 mesh concentrate (jumbo flake) and 21 to 24% recovered in the +100 mesh concentrates (large flake) with combined over 50% of jumbo and large flake concentrate. Both large and jumbo flake graphite is targeted for a premium market price.
During 2017-18, Graphite Energy Corp. carried out exploration work on the property which included prospecting, trenching, channel sampling and diamond core drilling on historically identified targets. Surface sampling work indicated graphite carbon in the range of 2.20% to 22.30% Cg. Graphite Energy Corp. also completed four NQ size diamond core drill holes in 2018. These holes were drilled around a historical graphite pit and each hole intersected significant graphite mineralization. Highlights of these results (all widths reported are core widths) include:
- LAB18-01 intersected 11.70% Cg over 1.55 m from 23.55 m and 9.24% Cg over 3.15 m from 86.40 m below surface.
- LAB18-02 intersected 8.45% Cg over 6 m from 28.3 m and 7.89% Cg over 4.08 m from 39.42 m below surface.
- LAB18-03 intersected 6.77 m grading 9.26% Cg from 80.13 m below surface.
- LAB18-04 intersected a 9.33 m zone grading 7.14% Cg from 97.57 m below surface.
In 2019, Graphite Energy Corp. applied for a change of business and returned the Property back to the vendor for failure to pay outstanding accounts.
The technical information contained in this news release has been reviewed and approved by Martin Ethier, P.Geo., a qualified person, as defined by NI 43-101 who works as consultant with the Company.
The Company acquired the LAB Graphite Property under an agreement dated June 24, 2019, where it can earn a 100% interest (subject to a 2% NSR to the Vendor) by paying $10,000 cash and issuing $40,000 worth of the Company's shares. The transaction is subject to TSX approval.
About Manganese X Energy
Manganese X Energy's mission is to acquire and advance high potential manganese as well as additional mineral prospects located in North America with the intent of supplying value added materials to the lithium ion battery and other alternative energy industries as well as the steel industry. In addition, our company is striving to achieve new methodologies emanating with environmentally friendly green/zero emissions processes and producing manganese at a lower competitive cost.
For more information, visit the website at www.manganesexenergycorp.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Cautionary Note Regarding Forward-Looking Statements:
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains "forward-looking information" including statements with respect to the future exploration performance of the Company. This forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements of the Company, expressed or implied by such forward-looking statements. These risks, as well as others, are disclosed within the Company's filing on SEDAR, which investors are encouraged to review prior to any transaction involving the securities of the Company. Forward-looking information contained herein is provided as of the date of this news release and the Company disclaims any obligation, other than as required by law, to update any forward-looking information for any reason. There can be no assurance that forward-looking information will prove to be accurate and the reader is cautioned not to place undue reliance on such forward-looking information.