Focus Graphite and SOQUEM Confirm Grades, Thicknesses and Continuity of the REE
Mineralization at Josette Horizon, Kwyjibo Property: 3.22
% TREO over 36 m in Hole 10885-12-75
OTTAWA, ONTARIO -- (Marketwire) -- 03/28/13 -- Focus Graphite Inc.
(TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) ("Focus" or the
"Corporation") and partner SOQUEM Inc. ("SOQUEM") are pleased to
report the results of the Fall 2012 core drilling program at the
Kwyjibo Polymetallic Iron-Rare Earth Elements-Copper (Fe-REE-Cu)
Property ("Kwyjibo" or the "Property"), located in the Cote-Nord
administrative district of northeastern Quebec. A total of 31 holes
(4,207 m) were drilled to confirm grades, thicknesses and continuity
of the Fe-REE-Cu mineralization within the northeastern portion of
the 1 km long Josette Horizon which hosted the best REE intersections
of the 2011 drilling program (see Focus press release dated March
Hole 10885-12-75 returned the best REE mineralized section of the
2012 drilling program:
-- Hole 10885-12-75: 3.22 % TREO(i) and 0.1 % Cu over 36.0 m(ii) (from 99.0
to 135.0 m), including a high grade sub-interval of 7.04 % TREO(i) and
0.19 % Cu over 7.0 m(ii) (from 111.0 m to 118.0 m).
Other highlights from the 2012 drilling program include:
-- Hole 10885-12-62: 2.26 % TREO(i) and 0.3 % Cu over 43.2 m(ii) (from 28.0
to 71.2 m) in massive iron formation, including a high grade sub-
interval of 5.08 % TREO(i) and 0.2 % Cu over 5.0 m(ii) (from 41.0 to and
-- Hole 10885-12-68: 2.56 % TREO(i) and 0.21 % Cu over 40.15 m(ii) (from
71.35 m to 111.5 m) in the massive iron formation, including a high
grade sub-interval of 5.10 % TREO(i) and 0.25 % Cu over 8.0 m(ii) (from
81.0 to 89.0 m).
-- Hole 10885-12-71: 3.29 % TREO(i) and 0.25 % Cu over 30.0 m(ii) (from
144.0 to 174.0 m) in massive iron formation, including a high grade sub-
interval of 4.29 % TREO(i) and 0.33 % Cu over 15.0 m(ii) (from 151.0 m
to 166.0 m).
-- Hole 10885-12-84: 1.47 % TREO(i) and 0.03 % Cu over 59.5 m(ii) (from
145.5 m to 205.0 m) in massive iron formation, including a high grade
sub-interval of 2.14 % TREO(i) and 0.03 % Cu over 24.0 m(ii) (from 147.0
m to 171.0 m); and
1.06 % TREO(i) over 34.0 m(ii) (from 171.0 to and
205.0 m) in the lower magnetite-veins breccia zone, including a high
grade sub-interval of 3.81% TREO(i) over 3.0 m(ii) (from 179.5 to 182.5
(i) Rare earth elements assays are expressed as total rare earth
oxides (TREO) including yttrium oxide. Values of TREO (REE2O3)
presented are the sum of all rare earth oxides of the lanthanide
series and yttrium oxide; strictly not a rare earth element,
yttrium is included in the total amount of REE because of the
chemical behaviour and uses that are similar to the lanthanides.
(ii) Intersections are expressed as core length in meters and not
the true thickness as most holes were drilled nearly perpendicular
to the dip of the Josette horizon (dip of -45 degrees to -50
degrees to the southeast).
Gary Economo, President and CEO of Focus stated: "These latest
drilling results from our Kwyjibo project confirm the grades,
thicknesses and continuity of the Fe-REE-Cu mineralization at the
Josette Horizon over a total strike length of 600 m and to a depth of
175 m. Moreover the new drill results again demonstrate the high
content of critical rare earth elements (in particular Nd and Y) of
the mineralization at Josette with REOc(iii) ratios for the
significant drill intersections ranging from 36 % to 43 %".
Mr. Economo added: "Our summer 2013 exploration program at Kwyjibo
will include additional drilling to further map the limits of the
Fe-REE-Cu mineralization at the Josette Horizon as well as to test
new ground geophysical anomalies in the western part of the
(iii) The ratio of critical rare earth elements ("REOc") is
defined by The U.S. Department of Energy ("DOE") as the sum of
Nd+Eu+Tb+Dy+Y oxides divided by total rare earth oxides (TREO) :
REOc = ((Nd2O3+Eu2O3+Tb2O3+Dy2O3+Y2O3)/TREO)x100. The REOc ratio
is the expression of the importance of those REEs sought by the
industry without considering the technological challenge to
recover the REE and all the costs related to a mine development.
Additional details of the 2012 drilling program including complete
assays results for TREO, REOc, ratio (in %) of heavy rare earth
oxides (HREO), Fe2O3, P2O5, and Cu, a map showing drill collar
locations and a long section of the Josette horizon are available on
the company's website at www.focusgraphite.com.
Fall 2012 Drilling Program
Thirty-one (31) holes (4,207 m) were drilled at Kwyjibo in 2012 with
the aim of validating grades, thicknesses and continuity of the
REE-Fe-Cu mineralization in the northeastern portion of the 1 km long
Josette Horizon and to a depth of about 175 m. A first series of
eight (8) holes (12-61 to 12-70) were centered on trenches TR-95-29
and TR-95-30 and were drilled at 25 m spacing. A further 23 holes
were drilled on both sides (northeast (12-71 to 12-83) and southwest
(12-85 to 12-91)) of the first series. Most holes were drilled nearly
perpendicular to the dip of the Josette horizon (dip of -45 degrees
to -50 degrees to the southeast) except for eight (8) holes that were
drilled with a dip ranging from -65 degrees and -75 degrees.
The 2012 drilling results confirmed one of the main findings of the
Josette Horizon exploration program in 2011 that is that the REE
mineralization is found not only in the magnetite-rich hydrothermal
iron formation (referred as a "magnetitite") but also in the
stockwork of magnetite veins associated with a calcic alteration
(composed of calcsilicate minerals veins with andradite,
clinopyroxene, hornblende, scapolite, plagioclase and others
Ca-bearing minerals) in the host rock composed mainly of foliated to
gneissic leucocratic granite.
The REE and copper mineralization in the Josette Horizon occurs into
three discrete zones:
-- The upper magnetite veins breccia zone, with a thickness varying from
less one (1) m to a maximum of 10 m, which is associated with
calcsilicate minerals veins and has intruded the leucocratic granite
gneiss host rock. REE grades are usually low;
-- The magnetitite zone or hydrothermal iron formation, the main
mineralized zone with the highest grades in REE and copper. Its
thickness varies from a few meters to more than 25 m and it is composed
of massive fine-grained magnetitite cut by coarser REE-bearing magnetite
veins and REE-bearing calcsilicate veins;
-- Finally the lower magnetite-veins breccia zone, with a thickness that
varies from a meter to more than 30 m, which is composed of magnetite-
rich veins and calcsilicate-bearing minerals veins, mineralized in REE,
and is emplaced in the leucocratic granite gneiss.
The 2012 drilling program also defined a zone of higher TREO and Cu
grades ranging from 1.33 % to 3.70 % TREO and 0.15 % to 0.36 % Cu
lying between drill holes 10885-11-58 and 10885-12-70. This
enrichment zone is 250 m long with a thickness of 2
0 to 40 m, dips at
approx. 50 degrees to the southeast and extends to a vertical depth
of 200 m.
Finally, the 2012 drilling results show that the easternmost portion
of the tested area (holes 10885-77 to 10885-12-83; 10885-11-55, 11-56
and 11-60) is characterized by the absence or by very thin (less than
5 m thick) massive magnetitite horizons with the mineralization
mostly contained in the lower magnetite-veins breccia zone. These
observations show that REE mineralization is not only limited to the
magnetitite horizons creating new mineral potential to sectors of the
Kwyjibo property with low magnetic signatures.
Methodology and QA/QC
The drilling program started August 22nd and ended October 3rd, 2012.
The drilling was performed by Orbit-Garant of Val-d'Or under the
supervision of SOQUEM. The drill mobilization and demobilization from
Sept-Iles to the Property, and the moves between holes were done by
helicopters (single-engine AS-305 B2 of Eurocopter) operated by
Heli-Boreal of Sept-Iles. About 30 holes were planned and the
location and length of four holes were changed during the course of
the program in order to pursue the continuity of the mineralized zone
between holes. The DDH core boxes were carried to the camp by
helicopter for core logging and sampling. After being logged and
sampled, the core boxes were loaded onto a float plane, operated by
Labrador Air Safari, to Sept-Iles or carried by helicopter to a
gravel pit located along highway 138, and then trucked to Heli-Boreal
air base in Sept-Iles. From there, the core boxes were sent by a
carrier to SOQUEM's core storage facilities.
A total of 1,531 samples, consisting of 1,453 half NQ drill cores
from 29 drill holes (hole 10885-12-81 was not sampled), 23
duplicates, 27 samples of our internal standard and 28 blank samples
were sent to ALS Minerals (in Val-d'Or and Vancouver; a certified
laboratory; ISO 9001:2008 and ISO/IEC 17025:2005 for standards) for
analysis for all rare earth elements, most traces and major elements.
For core samples, the core was sawed for the magnetitite or split,
for the breccia zones, in two halves and then placed into a plastic
bag. A numbered tag from the ALS laboratory was inserted into the bag
prior to the sealing of the bag with a tie-wrap. The sample bags were
loaded onto a float plane to Sept-Iles and sent by a carrier to ALS
Minerals ("ALS") in Val-d'Or.
Except for two holes, one standard sample and one or two blank
samples were introduced in each hole according to the number of
samples analyzed. Except for seven (7) holes, a duplicate sample was
analyzed for each hole. The standard sample is an internal standard
from Josette showing. In order to be valid, the blank sample (a
quartzite with SiO2 of approx. 96 %) had only trace amount of REE
(less than 60 ppm).
Rare earths and trace elements were analyzed using lithium borate
fusion of the sample prior to acid dissolution and analyze by ICP-MS
(Induced-Couples Plasma Mass Spectrometry). This method is best
suitable for minerals resistant to acids digestion, like some
REE-bearing silicates. For REE high grades samples, a re-analysis of
the pulp was performed using high sample to volume ratios in addition
to Class A volumetric glassware. ALS laboratory used certified high
grade rare earth reference materials as part of the standard
Major elements were analyzed using a lithium borate fusion of the
sample prior to acid dissolution and analyzed by ICP-AES
(Induced-Couples Plasma Atomic Emission Spectrometry). REE, traces
and major elements, fluorite, sulphur and carbon were analyzed at ALS
laboratory in Vancouver.
For sulphides-bearing samples, copper, gold, silver, lead, zinc and
sulphur were analyzed. Copper, lead, silver, zinc and sulphur were
analyzed using digestion in aqua regia, then analyzed by AAS
technique (Atomic Absorption Spectrometry). Elements such as As, Bi,
Hg, Sb, Se and Te were analyzed by ICP-MS after dissolution in aqua
Regia. Carbon and sulphur were analyzed in a combustion furnace and
fluorine was analyzed by fusion selective ion electrode (S.I.E.).
Three holes with the highest copper values were analyzed for gold.
Gold was analyzed by fire assay and AAS with a 30g nominal sample
weight. Copper, analyzed by AAS technique, and gold were done at ALS
facilities in Val-d'Or.
Surface and borehole TDEM geophysical surveys
A ground time-domain electromagnetic ("TDEM") geophysical survey and
a borehole Pulse-EM surveys were performed over selected portions of
the Kwyjibo property by Abitibi Geophysics Inc. of Val-d'Or between
August 25th and October 5th, 2012. A total of 75 line km were
surveyed on five different loops that covered all significant VTEM
anomalies from the 2006 airborne survey as well as all known
occurrences of the iron formation on the Kwyjibo Property.
A total of 30 drill holes (5,492 m) were surveyed with borehole
Pulse-EM on three loops. Eight (8) holes from the 1994 to 2011 core
drilling programs were also surveyed for a total of 1,219 m for the
most northeastern Grabuge - Gabriel showings loop (loop 5). A total
of 2,089 m from 11 drill holes (1994 to 2012) were surveyed on loop 4
that straddled the Fluorine and Josette showings grids. Finally,
2,184 m from 11 holes (1995 to 2012) were surveyed in the loop 3 that
covers most of the Josette horizon and the Josette grid.
The ground and borehole geophysical data were processed and
interpreted by MBGeosolutions of Quebec-City. The 3D renderings of
the TDEM anomalies and conductors are under review. High-priority
geophysical targets from the 2012 surveys will be followed-up though
drilling in 2013.
A first round of metallurgical tests is underway at COREM
Laboratories in Quebec-City. The testing is being performed on two
representative composite mineralized rock samples from mineralized
iron formation (magnetitite) and from mineralized breccia facies with
the aim to produce concentrates for critical rare earths, copper and
iron. The first composite sample is comprised of 80 kg of mineralised
rock from Josette showing. The second composite sample consists of
230 kg of quarter-split drill core samples from seven (7) holes
drilled below trenches TR-95-29 and TR-95-30. The contract to carry
out the metallurgical testing was awarded to COREM while the testing
is being supervised by Roche Ltd. The results of the metallurgical
testing program are expected during the third quarter of 2013.
The Kwyjibo polymetallic property, totalling 118 mining titles and
covering 6,278 ha, is located 125 km northeast of the port city of
Sept-Iles, in the Cote-Nord administrative district of Quebec. The
property is also located 25 km east of the Quebec North Shore and
Labrador railway line and is accessible by air from Sept-Iles.
Terms of the Agreement
On August 3, 2010, the Company announced the signing of an option
agreement with SOQUEM Inc., a wholly-owned subsidiary of the Societe
generale de financement du Quebec ("SGF") (in April 2011, the SGF
merged with Investissement Quebec), to acquire a 50% interest in the
Kwyjibo property. Under the terms of the agreement, Focus could
acquire a 50% interest in the Kwyjibo property, by spending up to $3
million in exploration work on the property over a period of 5 years
of which $1 million had to be spent during the first 2 years. SOQUEM
is the operator for the exploration work carried out on the property
to date and Focus has the option to become the operator, by paying
$50,000 in cash or issuing a block of common shares valued at
$50,000. As of the year ended September 30, 2012 Focus had spent
$3,244,173 on the Kwyjibo project (net of tax credits and mining
duties) and has accordingly earned its 50% interest in the property.
About Focus Graphite
Focus Graphite Inc. is an emerging mid-tier junior mining development
company, a technology solutions supplier and a business innovator.
Focus is the owner of the Lac Knife graphite deposit located in the
Cote-Nord region of northeastern Quebec. The Lac Knife project hosts
a NI 43-101 compliant Measured and Indicated mineral resource of
4.972 Mt grading 15.7% carbon as crystalline graphite with an
additional Inferred mineral resource of 3.000 Mt grading 15.6%
crystalline graphite. Focus' goal is to assume an industry leadership
position by becoming a low-cost producer of
graphite. On October 29th, 2012 the Company released the results of a
Preliminary Economic Analysis ("PEA") of the Lac Knife project which
demonstrates that the project has an excellent potential to become a
producer of graphite. As a technology-oriented enterprise with a view
to building long-term, sustainable shareholder value, Focus invests
in the development of graphene applications and patents through
About SOQUEM Inc.
SOQUEM Inc. is a wholly-owned subsidiary of Ressources Quebec.
Ressources Quebec is a new Investissement Quebec's subsidiary,
specializes in the mining and hydrocarbon industries; it will
consolidate and spur government investment in projects carried out by
mining companies and the hydrocarbon sector.
The technical information presented in this press release has been
reviewed by Benoit Lafrance, Ph.D., Geo (Quebec), Focus
Vice-President of Exploration and a Qualified Person under National
Forward Looking Statements - Disclaimer
This news release may contain forward looking statements, being
statements which are not historical facts, and discussions of future
plans and objectives. There can be no assurance that such statements
will prove accurate. Such statements are necessarily based upon a
number of estimates and assumptions that are subject to numerous
risks and uncertainties that could cause actual results and future
events to differ materially from those anticipated or projected.
Important factors that could cause actual results to differ
materially from the Company's expectations are in our documents filed
from time to time with the TSX Venture Exchange and provincial
securities regulators, most of which are available at www.sedar.com
Focus Graphite disclaims any intention or obligation to revise or
update such 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.
Mr. Gary Economo
President and Chief Executive Officer
613-691-1091, ext. 101
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