LOGAN COPPER ACQUIRES FORMER HIGH GRADE NORANDA GRAPHITE PROPERTY
Up to 85 % Graphite drilled
May 14, 2012 DELTA, BC, Canada – Logan Copper Inc. (the “Company”, “Logan Copper”, “LC”), (TSX.V: LC) is pleased to announce the acquisition of a third Graphite property in Quebec.
This new property, the Carheil Graphite Property (Carheil) was acquired through Quebec’s Gestim system. Carheil encompasses approximately 5,400, 100% owned, contiguous acres with no NSR or work commitment attached.
The Carheil property is located approximately 280 km NNW of Val-d’Or, QC and is approximately 120 km N of La Sarre, QC. Aurizon Mines Ltd.’s producing Casa-Berardi Gold Mine is located approximately 19 km south of LC’s Carheil property. There is an existing road crossing the property which leads to the BHP Billiton Ltd.’s past-producing Selbaie Zinc Mine which is located approximately 20 km east of LC’s Carheil property.
Mr. Thal S. Poonian, President and CEO of Logan Copper commented “LC believes that the Carheil property has the potential to become its flagship graphite property. We look forward to verifying the historical results and defining the project potential”.
A percentage (6.67% or 360 acres) of the 5,400 acre Carheil property was formerly explored by Noranda Exploration Co. Ltd. (Noranda). In August 1975 Noranda completed a geophysical survey covering approximately 300 acres of the Carheil graphite property.
Noranda completed two diamond drill holes in the surveyed area in May of 1978. The first hole was lost in overburden while the second hole number 2-78 was drilled to a depth of 497 feet. Historical diamond drill core log report number GM33862 returned results as follows:
- 157 – 227 feet about 5% graphite
- 240 – 425 feet 20 – 60% graphite
- 428 - 453 feet about 85% graphite
The hole was drilled at dip collar -55o and core size was AQ.
The historical, non-43-101 compliant, geophysical survey report filed with the Quebec Ministry of Natural Resources, report number GM: 31366, reported the following.
“The instrument used was a McPhar M700 Fluxgate Magnetometer. Readings were taken at all of the 100’ stations. The usual diurnal and datum adjustments were made and the corrected results were plotted and then contoured. Som 355 (base, sub-base and line) stations were read in the period August 4-12, 1975 by personnel of Noranda Exploration Co.”
“The magnetic suggest a formational strike of 125o. There is one closure inside the 1000 gammae contour. This extends from about 1550N on Line 16E to about 1500N on Line 20E.”
Horizontal E. M. Survey
“The instrument used was a Geonics EM17 Horizontal Loop. Readings were taken at all of the 100’ line stations. Some 245 of these were taken concurrently with the magnetic work by” Noranda’s “crew.”
“Three conductors were located. These are: -
AA. This intermittent conductor possibly extends across the grid. It is rather weak in amplitude and the conductivity is only fair. On Lines 12E and 16E it lies on the north flank of the magnetic closure mentioned above. The strike is approximately 125o.
BB. This conductor may be traced across the grid. The amplitude and conductivity are good to excellent especially on Lines 8E, 12E, 16E, 24E, 28E and 32E. The strike is as above.
CC. This conductor has fair amplitude and conductivity. The apparent strike of 60o is rather puzzling unless one assumes the conductor is caused by a fault or shear.”
“Conductor BB should be drilled on Line 16E. Sufficient footage should be allowed to cover the suggested conductor width of 150’ and the possible intersection of conductor CC.”
The historical data quoted herein was obtained from government files and other historical data and has not and cannot be verified as it is based on reports obtained and prepared by previous operators. The Company has not completed the work necessary to verify the results and is not treating the results as NI 43-101 defined resources verified by a qualified person. Although the historical data should not be relied upon, the Company views this historical data as relevant and a significant indication of the projects mineral potential. This property will require considerable further evaluation which the Company intends to carry out in due course.
LC’s technical team, led by Mr. Roger LeBlanc, P. Eng, Geo., will review the available data and commence exploration of the Carheil property as soon as possible. LC’s goal is to obtain a 43-101 compliant resource estimate for this property.
Roger LeBlanc, P.Eng, is a qualified person pursuant to National Instrument 43-101, and has reviewed and approved the technical disclosure of this news release.
For more information, please visit 1-866-940-9110.
Historical Reserves, Resources, or Results
Any data regarding historical reserves, resources, or results cited herein as historical are not compliant with National Instrument 43-101- Standards of Disclosure for Mineral Projects ("NI 43-101") nor current unless otherwise specified. They are derived from historical documents and represent that at sometime in the past the then current operators undertook an estimate of the size or metal content of the deposit based on economic factors that existed at that time. If they are included herein, it is for illustrative purposes only and should not be relied upon as factual.
Investors are cautioned that a qualified person has not completed sufficient work and the information has NOT undergone rigorous geological review and QA/QC testing by a Qualified Person as defined in NI 43-101. Neither the Company nor its personnel treat this data as a current mineral resource, reserve, or results as defined under NI 43-101, nor do they rely upon them for evaluation purposes. However, this data is being used as a guide to exploration as the Company develops data to support any potential future mineral resource estimates in accordance with the requirements of NI 43-101.
Graphite is a polymer of carbon that comes in three naturally occurring forms - flake, amorphous, and lump. All three are found in metamorphic as well as igneous rocks, varying by grade, particle (mesh) size and moisture content. Graphite exhibits a number of characteristics, which make it a high value industrial mineral with a broad range of applications: it is an excellent conductor of heat and electricity, is resistant to strong acids and thermal shock, is a lubricant, is refractive and has the highest natural strength and stiffness of any known material.
The commodity price of natural flake Graphite has steadily increased to as much as $3,000 per tonne from $694 per tonne in 2009. Industrial demand for graphite is growing at approximately 5 per cent annually.
Of the 1.1 million tonnes of worldwide graphite production, 800,000 tons (73%) comes from China where the closure of a number of natural graphite mines is reducing world-wide supply. Also, the government of China has imposed a duty of 20% plus an additional 17% value added tax on exports of graphite causing increases to prices for consumers. Consumption of graphite continues to grow rapidly through increased use in ion batteries, carbon fibre reinforced plastics, and carbon alloyed metals. Furthermore, additional demand is anticipated for use in fuel cells and the construction of pebble bed nuclear reactors.
Some examples of uses of graphite are:
- An average fuel cell vehicle will use 80 kilograms of graphite.
- An electric car will require 25-50 Kilograms of graphite,
- Pebble Bed Nuclear Reactors require “3,000 tonnes of graphite at start-up and 600 to 1,000 tonnes per year”.
China has one operating prototype of a Pebble Bed Nuclear Reactor and has firm plans to build 30 more by 2020. Researchers at West Virginia University estimate that “500 new 100 GW pebble reactors will be installed in the US by 2020 with an estimated graphite requirement of 400,000 tonnes” (annually).
About Logan Copper Inc.
Logan Copper Inc. is a Canadian mineral exploration company listed on the TSX-Venture Exchange under the symbol LC. LC’s British Columbia project, the Logan Lake project, includes the “Dansey”, “Bertha Molly (Lost Mine)”, “Duffy” and “TW” copper properties, which comprise a contiguous 100% owned parcel totalling over 137,900 acres located between Kamloops and Merritt in British Columbia.
The Company owns three graphite properties in the province of Quebec. The first is LC’s Mayo graphite property near the town of Mayo, Quebec totalling over 3,266 contiguous acres. The second is LC’s La Piece Perdue graphite property near the town of Notre-Dame-du-Laus, Quebec that comprises 6,626 contiguous acres and the third is LC’s Carheil Property totalling approximately 5,400 contiguous acres. These properties are 100% owned by LC and have no Net Smelter Royalties attached.