Alabama Graphite Corp. (CNSX:ALP, US:ABGPF) is a Canadian-based graphite exploration and development company whose flagship project “The Coosa Graphite Project” in Coosa County, Alabama is located in an area with significant historical production of high value crystalline flake graphite. The company’s stated objective is to become the first company to mine and produce graphite in the US in more than sixty years.
- US government has declared graphite a strategic mineral
- Drill results from Coosa Graphite Project are pending
- Company has low share count
- Historic graphite producing property contained within privately held land
- Great low cost infrastructure in place, and year round drilling capability
Coosa Graphite Project
The Coosa Graphite Project is located in Coosa County, Alabama, 96 km southeast of Birmingham. The nearest small city is Sylacauga, approximately 48 km from the property. The seventy-year mining lease comprises of over 14,000 acres of land in an area of Alabama that has been a significant historical producer of graphite from 1900 through to the 1950′s. The area boasts immediate infrastructure requirements and an abundant labor force. There had been no documented exploration work done, or graphite production in the area in more than 60 years; until Alabama Graphite Corp. began initial exploration in June of 2012.
Exploration determined there is a great deal of potential over the length the graphite belt which is approximately 113 km long and 4.8 to 9.6 km wide. Historic production had focused almost entirely on the near-surface weathering zone. The unweathered subsurface has barely been touched. Where mined the schist (rock type) contained an average of about three or four per cent of graphitic carbon. It is important to note that the unweathered schist even at depth can produce the more valuable large crystalline flake graphite due to the leaching out of sulphide minerals. This results in a poorly cemented rock matrix within the schist rock unit, and allows for better recovery of the large crystalline flake graphite when processed.
Trenching at road cuts supplied the company with ample drill targets to test, which was undertaken in September 2012. Eight drill holes have been completed to date and additional holes are currently being bored. The two drill rigs currently on the property will work towards each other drilling 12 holes to define the deposit geology. Work is expected to be completed during Q4 2012.
Preliminary core logging has determined that graphitic schists are the dominant rock type encountered in each of the first five drill holes. Historically, these schists have been the dominant source of graphite in the region. Cross-sections based on the drill results indicate that the graphitic schist unit has a true thickness in excess of 515 meters; simply meaning the resource estimate may be larger than first anticipated. The core lengths that have been sampled and assayed look most encouraging. Thus far the drill program remains ahead of schedule and under budget.
The Company expects the initial exploration and drill program will be completed in late 2012 and will use these results toward creating a NI 43-101 compliant resource estimate.
Alabama Graphite Corp’s main property, the Coosa Graphite Project is an early phase graphite property located in a historically producing mining district. The company’s stated goal is to become America’s domestic supplier of graphite; currently the US imports 50% of its graphite from China, and demand is on the rise in both the industrial, i.e. lubricants, and hi-tech sector in the form of flat screens and lithium ion batteries. Drill results from this season are pending and should form the basis of a NI 43-101 compliant reserve estimate, and basis for future work programs. The company also boasts a low overall share count and an experienced management team.
Daniel Spine – CEO / Director
Mr. Spine brings more than 25 years of experience in the financial industry and has served as managing partner and Chief Investment Officer of Diversified Equity Investments, LLC and the Diversified Equity Investments Fund, L.P., in Atlanta, Georgia since October, 1999. DEI Fund has exclusively focused on investments in both private and publicly-traded equity in precious and base metals companies since 2003.
Ron S. Roda – President
Ron brings over 20 years of experience in building early stage enterprises, operations management, banking and financial markets to Alabama Graphite. Most recently he was managing director, head of North America product control for the investment bank at Citigroup. Ron has a BSc. in Biochemistry and an MBA, both from the University of Toronto. He is also a Canadian Chartered Professional Accountant.
His responsibilities at Citigroup included managing the finance function for North America trading and capital market origination activities within the investment bank. He spent 10 years within the investment bank of Citigroup in roles of increasing responsibility. Ron has also held finance roles at UBS (Americas) and Merrill Lynch in New York. Ron began his career at Ernst & Young in Toronto where he was a manager in the Capital Markets and Treasury practice. Ron brings extensive experience in financial management, business analysis, due diligence, business combinations, reporting & control, fundraising and strategic operational improvements.
Richard R. Keevil, P.Geo. – Vice President of Project Development / Director
Mr. Keevil, a professional geologist and a Qualified Person, brings over thirty years of mining experience to the Company. He has been an exploration/technical consultant to a variety of companies in the graphite industry. He has spent twenty plus years in the area of graphite exploration, metallurgical analysis and project development. Until recently he played a strategic role in the re-development of the Kearney Mine at Ontario Graphite Ltd., formerly Cal Graphite. His mandate at Ontario Graphite included geophysics, geology, petrology, and was the on-site geologist for the recent 10,000+ ft. drilling program. He has also spent time as a consultant performing petrology and microscopic analysis with Northern Graphite and Vince Sheehan Claims. Early in his career, he was a lands and mineral specialist for the Ontario Government at the Ministry of Natural Resources and a staff geologist at the Ministry of Northern Development and Mines, during the production years of Cal Graphite. Mr. Keevil obtained his Bachelor of Arts in Geology from the University of Western Ontario and a Bachelor of Education in Geology from the University of Toronto.
Dr. Douglas Oliver – VP of Exploration
Dr. Oliver is a career geologist with 30 years experience in mineral exploration. He is president and founder of Oliver Geoservices, which specializes in exploration management, economic evaluations and independent reviews. He received his Bachelor’s degree in Geology from Rutgers University and has an MBA from the University of Texas at Austin and a PhD in Tectonics from Southern Methodist University.