Next Graphite, Inc., a graphite exploration / development stage company in Africa's Republic of Namibia, today announced that its joint venture partner has secured an LOI in which the venture will supply up to 5,000 metric tonnes of graphite material to a vertically integrated graphite producer over the course of the next year. First shipment is anticipated in July of this year.
Graphitic material grading between 40 and 50% Cg (carbon as graphite) will be delivered over the course of the next year under the terms of the letter of intent. It is expected that a first shipment of between 2,000 and 3,000 tonnes of graphitic material will be made in July 2016, prior to which the partners will supply a 1.6 tonne sample to allow the producer to run the material through its mill and make any adjustments necessary to treat the Aukam material on a go-forward basis.
This material comes from the previously announced bulk sampling program (see news release dated December 18, 2015). During a 500 tonne bulk sampling program in 2014, Next Graphite was able to stockpile and grade 240 tonnes of graphitic lumps with an average grade of 41.6% Cg within a range of 17.0% to 81.8% Cg.
"We are pleased that our partner has advanced these discussions to a preliminary arrangement for shipment of product to an established graphite producer. This allows us to move on to the next phase of our business plan," said Cliff Bream, President / CEO of Next Graphite, Inc. "This sales development is largely due to the quality of our graphite. Vein-type graphite, such as that which occurs at Aukam, is one of the highest grade naturally occurring forms of carbon. The highest grade sample assayed to date from the Aukam property graded 81.8% Cg, similar to the high grade graphite found in Sri Lanka."