MONTREAL, Sept. 13, 2017 (GLOBE NEWSWIRE) -- SRG GRAPHITE INC. (TSX-V:SRG) (“SRG” or the “Company”) today announced assay results from 12 boreholes drilled at the Company’s Lola Graphite Deposit (“Lola”) in eastern Guinea, West Africa. Nine of the 12 drill intercepts returned grades above 10% graphitic carbon (“Cg”), including 10.06% Cg over 48.0 meters (“m”) combined intercepts. These results continue to expand the high-grade potential of the Lola Graphite Deposit. (Drilling results are shown in Table 1.)
Highlights
- Borehole LL36-262441 returned 10.06% Cg over 48.0 m of combined intercepts, including 15.15% Cg over 22.5 m.
- Borehole LL36-239433 returned 6.69% Cg over 36.0 m of combined intercepts, including 10.27% Cg over 21.5 m.
The current drilling program is aimed at producing a maiden mineral estimate for Lola’s surface weathered profile (from the surface to a depth of approximately 30 meters), which is to be included in a preliminary economic assessment scheduled for completion in Q4 2017. The weathered profile is approximately 32% thicker than SRG’s initial estimate of 20 meters, with several holes demonstrating vertical thicknesses of up to 50 meters.
The table below presents a summary of the 12 drill hole results. Mineralized intervals were defined using a 1.0% Cg cut‑off grade (“cog”). All boreholes were drilled at an inclination of 50 degrees from horizontal and cross-cut the geological succession as perpendicular as possible. The graphitic paragneiss displayed foliation dipping between 80 and 85 degrees to the west.
| Table 1: Drilling Results | |||
| Hole-ID | From (m) |
Length (m) |
CG (%) |
| LL36-119389 | 0.00 | 27.30 | 2.58 |
| LL36-143397 | 0.00 | 21.00 | 2.77 |
| LL36-262441 | 0.00 | 55.50 | 8.92 |
| including *1 | 48.00 | 10.06 | |
| including *2 | 22.50 | 15.15 | |
| LL36-289450 | 0.00 | 46.10 | 6.80 |
| including *2 | 7.50 | 11.83 | |
| LL36-313459 | 0.00 | 40.00 | 4.89 |
| including *1 | 21.00 | 7.75 | |
| including *2 | 7.00 | 11.84 | |
| LL36-337469 | 0.00 | 12.00 | 1.36 |
| LL36-239433 | 0.00 | 36.00 | 6.69 |
| including *1 | 21.50 | 10.27 | |
| including *2 | 11.50 | 14.95 | |
| LL6-217425 | 0.00 | 36.30 | 5.84 |
| including *1 | 16.80 | 10.24 | |
| including *2 | 7.80 | 17.41 | |
| LL36-191413 | 0.00 | 37.40 | 4.32 |
| including *2 | 1.50 | 10.10 | |
| LL36-167405 | 1.50 | 24.00 | 3.51 |
| including*2 | 2.00 | 12.60 | |
| LL36-205528 | 4.50 | 30.50 | 5.72 |
| including*2 | 5.00 | 12.12 | |
| LL36-228537 | 0.00 | 45.00 | 5.70 |
| including *2 | 9.00 | 12.28 | |
1 3% Cg cut-off grade (average grade of combined intervals).
2 10% CG cut-off grade (average grade of combined intervals).
True thickness perpendicular to foliation is 67% of the drilled thickness.
Results from hole LL36-262441 demonstrated continuous mineralization from 0 to 55.5 m, grading at an average of 8.92% Cg when utilizing a 1.0% Cg cut-off grade for an estimated true of 37 m perpendicular to foliation. Thicknesses vary using cut-off grades of 3% Cg and 10% Cg, and reporting is not necessarily indicative of the continuous characteristic of the Lola mineralization.
In hole LL36-262441, 10.06% Cg over 48.0 m, the combined mineralization is composed of the following intercepts using a 3.0% Cg cut-off grade.
| Table 2: In Hole LL36-262441 Results Over 48m Using a 3.0% Cut-off Grade | |||
| From (m) | To (m) | Length (m) | CG (%) |
| 4.5 | 15.0 | 10.5 | 4.37 |
| 18.0 | 30.0 | 12.0 | 15.86 |
| 34.5 | 60.0 | 25.5 | 9.69 |
| Total | 48.0 | 10.06 | |
Additionally, the 15.15% Cg over 22.5 m result is composed of the following intercepts using a 10.0% Cg cut-off grade.
| Table 3: In Hole LL36-262441 Results Over 22.5 m Using a 10.0% Cut-off Grade | |||
| From (m) | To (m) | Length (m) | CG (%) |
| 18.0 | 28.5 | 10.5 | 17.57 |
| 37.5 | 42.0 | 4.5 | 13.37 |
| 45.0 | 46.5 | 1.5 | 12.10 |
| 52.5 | 58.5 | 6.0 | 13.03 |
| Total | 22.5 | 15.15 | |
The Lola Graphite Project, which is located near the town of Lola in eastern Guinea, is 100% owned by Sama Resources Guinea SARL, a wholly-owned subsidiary of the SRG.
Core logging and sampling were performed at SRG’s facility in the Lola village. Sample preparations were performed by Veritas Laboratory in Abidjan, Côte d’Ivoire. Pulp samples were delivered to Activation Laboratories Ltd., Ancaster, Ontario, Canada. The samples were treated through a multistage furnace process to remove organic carbon and carbonate carbon. The remaining graphitic carbon was measured as carbon dioxide in the infrared (“IR”) cell as gases flowed through the cell. Carbon dioxide absorbs IR energy at a precise wavelength within the IR spectrum. All analyses were performed using Eltra instruments.
SRG Retains Market-Making Services
The Company has, subject to regulatory approval, retained the services of Venture Liquidity Providers Inc. (“VLP”) to initiate its market-making service to aid in maintaining an orderly trading market for the common shares of the Company.
The market-making service will be undertaken by VLP through a registered broker, W.D. Latimer Co. Ltd., in compliance with the applicable policies of the TSX Venture Exchange and other applicable laws. For its services, the Company has agreed to pay VLP $5,000 per month for a period of 12 months. The agreement may be terminated at any time by the Company or VLP. The Company and VLP act at arm's length, and VLP has no present interest, directly or indirectly, in the Company or its securities. The finances and the shares required for the market-making service are provided by W.D. Latimer. The fee paid by the Company to VLP is for services only.
VLP is a specialized consulting firm based in Toronto providing a variety of services focused on TSX-V-listed issuers.
About SRG Graphite Inc. (SRG)
SRG is a Canadian-based company focused on developing the Lola Graphite Deposit, located in the Republic of Guinea, West Africa. SRG is committed to operate in a socially, environmentally and ethically responsible manner.
The technical information in this release has been reviewed and approved by Dr. Marc-Antoine Audet, P.Geo, President and CEO, SRG and a “qualified person” as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.
