Resource World Magazine

j u n e / j u l y 2 0 1 5 www.resourceworld.com 29 of caution should be sounded. Too often, a metal or mineral comes into vogue, with enthusiasm for the future, muddling investment decisions in the present. At its worst, the cardinal rules for identify- ing a sound project can be jettisoned in the excitement, including questions con- cerning project accessibility, jurisdiction, management team experience and a com- pany's ability to access capital. In addition, flake type and purity rates are of particular importance. The canny investor should always weigh these aspects first and foremost. Below are listed some of the com- panies advancing in the graphite space. Alabama Graphite Corp. [ALP-TSXV; ABGF-OTCQX] holds two Alabama-located graphite projects: the Coosa and Bama. On April 21, the company announced it had finalized plans for an infill drilling cam- paign at Coosa. In addition, three holes will also be drilled at the former Fixico Mine located on the property. On April 7, the company announced final results of a trenching program undertaken at Bama, the encouraging results identifying new targets for further exploration. On February 27, it announced preliminary metallurgical results from trench samples taken in late 2014 at Coosa, which indicate high percentages of coarse flakes occur- ring in several new areas. On March 12, it also announced that Dr. Nitin Chopra of the University of Alabama had found naturally-occurring flake graphene at Coosa. Graphene is a one-atom-thick layer of carbon arranged in a honeycomb lattice that forms flakes of graphite when stacked together. Indicated resources at Coosa are 38.16 million tons of 2.6% Cg with inferred resources of 26.99 million tons of 2.87% Cg. Canada Carbon Inc. [CCB-TSXV] holds a 100% interest in three graphite properties in Québec, including two past producing graphite mines – the Miller and the Asbury. The company has obtained additional test results confirming that the Miller graph- ite is suitable for nuclear applications. Dr. Karol Putyera, VP, Purity Survey Analysis Services, of Evans Analytical, NY, stated, "I have been analyzing high-purity graphite for nuclear applications for many years at Evans Analytical, and these purity results for natural graphite are comparable to the purest natural graphite samples I have assayed and compared to results published around the world." Caribou King Resources Ltd. [CKR- TSXV] announced on April 27 that it had started exploration work on its TAC graph- ite project in southern Québec, which will include follow-up sampling work. On February 17, the company announced a sample returned purity results of up to 99.4% Cg (graphitic carbon) from ben- eficiation testing. On March 3, it unveiled preliminary results of a second sample, taken from the wall of a historic trench, with the beneficiation returning up to 99.9% Cg. Both samples came from the Uncle Zone in its Buckingham flake/ lump graphite property, located near Buckingham, Québec. Further encour- aging results were released on April 20. Earlier, the company revealed it had signed a letter of intent with Cavan Ventures Inc. [CVN-TSXV] in a move towards a poten- tial joint venture for 24 claims attached to the Buckingham property's northern boundary. DNI Metals Inc. [DNI-TSXV; DG7-FSE] announced on March 9 that it had signed a letter of intent to acquire a historic graph- ite property in Madagascar, around 50 km south of Toamasina. Purchase price is 4 mil- lion common shares of DNI and $400,000. The cash component comprises $10,000 for signing the letter of intent; $90,000 paid at the end of the due diligence period; $150,000 paid six months after signing a final agreement; and $150,000 paid on a decision to mine. On April 8, the com- pany unveiled encouraging results from grab samples taken at the property as part of its due diligence. Jumbo and large flake distribution was reported greater than 62.5%, with jumbo and large flake content ranging from 91.3-97.9% Cg. Energizer Resources Inc. [EGZ-TSX; ENZR-OTCQX] is advancing the Molo deposit within the Green Giant graphite project in southern Madagascar. It is part of a joint venture with Malagasy Minerals Ltd., with Energizer, the operator, holding a 75% stake. The company announced a positive feasibility study (FS) earlier in the year. Highlights of the FS include a CapEx of $149.9 million with a payback of 4.84 years. Mine life is estimated at 26 years, with an average annual output of just over 53,000 tonnes concentrate. The company hopes it will have secured its mining per- mit by Q4 2015. The environmental permit has already been submitted and approved by the Madagascar government. In addi- Caribou's Buckingham Graphite discovery in Quebec yielding up to 99.9% purity in a single flotation test. Buckingham graphite sample taken in 2015 604-683-3995 www.caribouking.com TSX:V: CKR

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