Alabama Graphite Corp.- Kick Starting Graphite Production in the U.S.
Overview
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.
Investment Highlights
- 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
Key Project
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.
Summary
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.
Management
Daniel Spine – President, CEO, and Director
Mr. Spine brings more than twenty-five 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.
John Morita – CFO and Director
Mr. Morita has been a professional accountant for over thirty-five years and is a member of the Certified General Accountants Association of B.C. Mr. Morita played a major role in referring and the successful completion of Astron Resources Corp’s Qualifying Transaction which was the RTO of Nevada Copper Corp (TSX:NCU). Mr. Morita played a major role in referring and the successful completion of ACP Ace Venture Corp’s Qualifying Transaction which was the RTO of Cantronic Systems Inc.(TSXV:CTS) a Tier 1 company.
Mr. Morita is currently the CFO and a director of Urastar Gold Corp. (TSXV:URS) and Mineral Mountian Resources Ltd. (TSX: MMV.V). He is CFO of Maxtech Ventures Inc. (TSXV:MVT), Acadia Resources Corp. (TSX: AIC.V) and Golden Cross Resources (CNSX:GOX). Mr. Morita also serves on the Board of Directors of Polo Biology Global Group Corporation.
Dr. Douglas Oliver – VP of Exploration
Dr. Douglas is a career geologist with thirty 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.
James K. Duff – Director
Mr. Duff retired as Chief Operating Officer of Minera Andes Inc. prior to its merger into US Gold which created McEwen Mining (NYSE/TSX:MUX). Mr. Duff continues to consult for McEwen on its San Jose mine operation and other projects. He has over thirty-five years experience as a mining executive in the precious and base metal mining industry in U.S., Canada, Latin America and Australia. Mr. Duff previously served as President of South American Operations for Coeur d`Alene Mines Corporation and was responsible for its underground gold and silver mining operations in Chile and Argentina and the development and start-up of the 5,000 ton per day San Bartolome silver mine in Bolivia.
Mr. Duff is a Registered Professional Geologist and holds a bachelor’s degree in Geology from the Mackay School of Mines at the University of Nevada Reno, an M.S. Degree in Geology from the University of Idaho and has completed the Program for Management Development at the Harvard School of Business. Mr. Duff has also completed graduate studies for International Business Management at the Whitworth University School of Global Management.
Adrian Robertson, P.Eng – Director
Mr. Robertson is a professional engineer with “life of mine” experience ranging from exploration and financing through production and reclamation. Mr. Robertson is the President and CEO of Urastar Gold Corp. (TSXV:URS) and is also a director of Meadow Bay Gold Corporation (TSX:MAY). His previous work experience includes positions with Vale (formerly Inco Ltd.) and Teck, Golder Associates and TVX Corp.
Wade Black – Director
Mr. Black is President of Blackberry Fund Management, Inc., the manager of two investment funds invested primarily in exploration and development stage mining projects and companies. He is formerly the Chief Operating Officer of Scarsdale Equities LLC, a New York based FINRA-member broker-dealer and investment bank, where he remains a registered principal. He is a director of Tiex, Inc., a publicly-traded Canadian exploration company, and was formerly a director of US Silver Corp. (TSX: USA) and United Silver Corp. (TSX: USC). Mr. Black has an MBA from Columbia Business School, and graduated cum laude with a BA in economics and philosophy from Columbia University’s School of General Studies.
