Today Ontario Graphite announced that an NI 43-101 compliant Mineral Resource Estimate, conducted in August 2013, shows higher Indicated and Inferred Mineral Resources at the Kearney Graphite Mine, nearly doubling the previously estimated Indicated Resources.
The revised estimate indicates a mineral inventory on the Kearney Mine property of 51.5 million tonnes of Indicated Mineral Resources at an average grade of 2.14 per cent carbon graphite (Cg), plus an additional 46.8 million tonnes of Inferred Mineral Resources at an average grade of 2.0 per cent Cg.
"These new resource estimates further highlight the production potential of the Kearney Mine and secure Ontario Graphite's position as the largest confirmed graphite mineral resource project in North America," said Ellerton Castor, CFO & Chief Administrative Officer, Ontario Graphite Ltd. "The new Indicated Resources alone will afford us at least 20 years of additional mine life, approaching 50-plus years of mine life assuming current nameplate mill capacity. The size of resource will enable Ontario Graphite to provide a stable and reliable source of high-quality large-flake graphite to our customers around the world."
"We are pleased to be a productive partner in the Kearney region's economy. An increased expected lifespan for the mine will help ensure a long-term, secure supply of graphite, in turn creating further economic benefits in the community for years to come," said Jerry Janik, General Manager of Ontario Graphite's Kearney Mine. "Also of note, the resource limit to the northeast of the property has not yet been defined and we are interested in the possibilities of further resource development."
Current regulatory permits allow for up to 10 years of mining activity, which is not uncommon in the industry. Further extraction of resources would require amendments to the permits.
Golder Associates Ltd. (Golder) completed the Mineral Resource estimate for the McGuire and Sheehan zones of the Kearney project using historic drill data information and 12 new diamond drill holes completed in 2013. Industry best practice procedures for block model estimation were followed and included Ordinary Kriging, unfolding, and estimation parameters based on spacial analysis (variography).
The mineral resource estimate was completed by Mr. Greg Greenough, P.Geo. - a qualified person for Golder - who has provided written permission for the release of this mineral resource estimate in the form and context in which it is provided here. Ontario Graphite Ltd. will file an updated NI 43-101 technical report within 45 days in regard to its updated mineral resource estimate.