Zenyatta Ventures Ltd. (TSXV:ZEN) is a junior exploration company focused on developing the Albany Graphite Deposit, a very rare hydrothermal breccia-hosted graphite deposit, in north-western Ontario, Canada. First discovered in 2011, it is currently the largest and only known hydrothermal graphite deposit under development in the world.
Preliminary metallurgical studies demonstrate that a high-purity graphite concentrate can be produced from the mineralization utilizing a low-cost processing technique. The Company’s highly experienced management team is actively working to target the $13 billion high purity, synthetic graphite market. A 2013 drill campaign is nearing completion and will be used to develop an NI 43‑101 resource estimate planned for September 2013. A Preliminary Economic Assessment (PEA) is anticipated in the first quarter of 2014.
- Largest and only new magmatic hydrothermal graphite deposit in the world
- Ultra-high purity graphite product with >99.99% Carbon Purity
- Close to surface, easy access and great infrastructure
- Only company to acquire high-purity product from low-cost caustic bake leaching process
- Strong, experienced management team
- Only 55,059,862 shares issued
- Tight share structure with Directors, Management and Advisors holding 20%
- NI 43-101 resource estimate planned for September 2013; PEA planned for completion in Q1 2014
Albany Graphite Deposit — Ontario, Canada
A two-phase exploration program on the Albany Project in 2011 and 2012 led to the discovery of a rare graphite deposit. Testing a large airborne EM conductor measuring 1400 m by 800 m, the first drill hole on the Albany project intersected eight separate and extensive graphite-rich breccia zones. The Albany Graphite Deposit is near surface, underneath glacial till overburden and a thin veneer of limestone. In early 2012, a mineralogical report prepared by Dr. Andrew Conly, Ph.D. of Lakehead University Mineralogy and Experimental Laboratory characterized the deposit as a magmatic, hydrothermal style of graphite mineralization. Hydrothermal breccia graphite is very rare, and the purest form of graphite found in nature.
In March 2012, Zenyatta began an initial 4,000 m exploration drill campaign at the Albany Graphite Deposit with a goal of further testing the extent of EM conductor. The nine-hole drill program succeeded in establishing widespread graphite mineralization over the targeted airborne geophysical conductor in a lateral and vertical extent, where it remains open.
Highlights from the 2012 drill campaign include drill hole #9 which intersected a very large mineralized zone of graphitic breccia and veining, from 162.0 to 370.2 m grading 4.6% C over 208.2 m. This included richer graphitic zones from 188.0 to 327.0 m yielding 5.6% C over 139.0 m and from 188.0 to 235.0 m grading 7.3% C over 47.0 m. Individual samples assayed as high as 19.3% C.
In March 2013, Zenyatta began a fully-funded $4 million drill program to define the size and grade of the Albany Graphite Deposit. The 10,000 m campaign will be used to complete a NI 43-101 resource estimate.
Highlights to date include:
- Drill hole #1 intersected 363.0 m of graphite mineralization from 47.0 m to 410.0 m.
- Drill hole #10 intersected 360.8 m of graphite mineralization from 49.0 m to 409.8 m yielding an average grade of 5.1% graphitic carbon (Cg).
- Drill hole #11 was designed to test to a vertical depth of 500 m and yielded 84.9 m @ 5.2% Cg from 460.6 m to 545.5 m within a broader intersection of 203.0 m of graphite mineralization averaging 3.0% Cg from 393.0 m to 596.0 m.
To date, Zenyatta has drilled an additional 25 drill holes on the property in the 2013 drill program and every drill hole has intersected wide zones of graphite mineralization.
In April 2013, Zenyatta announced that all trials using a simple caustic baking leach process (sodium hydroxide) conclusively demonstrated that an ultra-high purity graphite product with >99.99% Carbon can be produced from the Albany graphite deposit. Mineralogical work showed the graphite material to be of high-quality, containing insignificant amounts of impurities.
In May 2013, Zenyatta reported results of a ground survey using EM geophysics to better define the geometry of the Albany graphite deposit. The survey revealed two discrete, strongly conductive zones which are coincident with the graphite mineralization associated with the East and West breccia pipes.
A NI 43-101 resource estimate is anticipated in September 2013, and optimized metallurgical testing is expected to be completed by the end of the fourth quarter 2013. A Preliminary Economic Assessment is planned for completion in the first quarter of 2014.
Mr. Peter Wood, P.Geo., Zenyatta Ventures Ltd.’s Vice President of Exploration, is a “Qualified Person” under National Instrument 43-101 and has reviewed and approved the technical information contained in this article.
CAUTIONARY STATEMENT: This Article includes certain “forward-looking statements”, which often, but not always, can be identified by the use of words such as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. These statements are based on information currently available to Zenyatta and Zenyatta provides no assurance that actual results will meet management’s expectations. Forward-looking statements include estimates and statements with respect to Zenyatta’s future plans, objectives or goals, to the effect that Zenyatta or management expects a stated condition or result to occur, including Zenyatta’s estimates with respect to mineral resource quantities, grades and economic potential, future exploration and business plans, and the timing for completion of a 43-101 compliant resource estimate and a Preliminary Economic Assessment. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of Zenyatta’s mineral properties, and Zenyatta’s financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with Zenyatta’s activities; and other matters discussed in this News Release and in filings made with securities regulators. This list is not exhaustive of the factors that may affect any of Zenyatta’s forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on Zenyatta’s forward-looking statements. Zenyatta does not undertake to update any forward-looking statement that may be made from time to time by Zenyatta or on its behalf, except in accordance with applicable securities laws.
Zenyatta Ventures is focused on developing the Albany Graphite Deposit, a very rare, hydrothermal, breccia-hosted graphite deposit situated in north-western Ontario, Canada. The Albany Graphite Deposit is near surface, underneath glacial till overburden and a thin veneer of limestone and the property lies within an area of well-established infrastructure.
Preliminary metallurgical studies demonstrate that a high-purity (>99.99%) graphite concentrate can be produced from the mineralization utilizing a low-cost processing technique.
A 2013 drill campaign is nearing completion and will be used to develop a NI 43-101 resource estimate planned for September 2013 with a PEA to follow in the first quarter of 2014.
Aubrey Eveleigh, P.Geo. — President, Chief Executive Officer, and Director
Mr. Eveleigh graduated from Memorial University of Newfoundland with a B.Sc. Geology in 1989. While at University, he worked for Noranda Exploration Co. Ltd. for five field seasons as a geological assistant and continued his career with Noranda as a project geologist until 1992 at various Canadian mining camps. From 1992-1999 Mr. Eveleigh was a partner at a geological consulting firm with a staff of 25 geologists, technicians & prospectors, consulting for as many as 50 major and junior mining companies. From 2000 to present he has been President of Eveleigh Geological Consulting Inc., providing geologists, field technicians, prospectors and administration staff to the mineral exploration industry including Rio Tinto, Goldcorp, Agnico-Eagle Mines, Diavik Diamond Mines, BHP Billiton and many junior mining companies.
He has also acted as VP Exploration, Senior Officer and Director to successful TSX Companies, including Wolfden Resources, which resulted in a successful merger with an Australian mining company, and MetalCORP Limited, where he was responsible for raising in excess of $25,000,000 for exploration and made many new mineral discoveries.
Peter C. Wood, P.Eng., P.Geo. — Vice President of Exploration
Mr. Wood has more than 25 years’ experience in the mining industry and has worked as an exploration geologist for several major mining companies. He operates a geological consulting company which was incorporated in 1991. Mr. Wood was also the co-founder and manager (VP Exploration, Director and QP) of a junior exploration company listed on the Toronto Venture Exchange. He has been actively involved in the exploration for gold, VMS, platinum-group element and magmatic nickel-copper deposits and diamonds with a number of junior exploration companies. He has also been part of an exploration team that has made several significant mineral deposit discoveries and been closely involved in subsequent mineral resource estimates.
Mr. Wood holds an Honours B.A.Sc. in Geological Engineering specializing in mineral exploration and a M.Sc. in Geology, both from the University of Toronto. He is a Professional Engineer with the Professional Engineers of Ontario and a Professional Geoscientist with the Association of Professional Geoscientists of Ontario. He is also a member of the Society of Economic Geologists and the Geological Association of Canada.
Tom G. Mustapic, CGA — Chief Financial Officer
Mr. Mustapic has more than twenty years’ experience as a Certified General Accountant. He graduated with an Honours Bachelor of Commerce Degree in 1981 from Lakehead University. Mr. Mustapic has experience working in public accounting, the municipal sector and with the Thunder Bay Catholic District School Board.
He currently serves as Associate Director and Treasurer of the Thunder Bay Catholic District School Board. Mr. Mustapic has five years of experience as Chief Financial Officer for a publicly traded mining exploration company. Community focused, he is currently serving as a Director of the St. Joseph’s Foundation and as Treasurer for the Thunder Bay Blaze Basketball Association.
Barry D. Allan, B.Sc., MBA — Director
Mr. Allan is the Senior VP & Director, Senior Mining Analyst at Mackie Research Capital, Toronto. He currently heads the Equity Research team, overseeing a group of equity analysts. During his career, Mr. Allan has consistently ranked as one of the top ten mining analysts in Canada and is the main reason that Research Capital’s mining analyst team is consistently rated among North America’s top five firms by independent agencies such as Brendan Wood and Zack’s. He began his career as an exploration geologist with a number of major and junior mining companies, before becoming a mining specialist for CIBC.
Prior to joining Mackie Research Capital, he was a Gold and Precious Metals Mining Analyst with Gordon Capital, BZW, and Prudential Bache. Mr. Allan is also a Fellow of the Institute of Canadian Bankers. He holds a B.Sc. (Geology) and an MBA from Dalhousie University.
Brian R. Davey — Director
From 2010 to present, Mr. Davey has served as the Executive Director of Nishnawbe-Aski Development Funds. From 2006 to 2010, he was the Manager of Economic Development with the Matawa First Nations Tribal Council. From 2000 to 2006 he was the managing partner of First Nations Equity, a financial advisory/management-consulting firm. Mr. Davey was also the Chief Executive Officer of the Aboriginal Economic Renewal Secretariat based in Toronto, a Secretariat responsible for facilitating and developing business partnerships between industry and Aboriginal business. From 1991 to 1997 he was a Deputy Grand Chief of the Nishnawbe-Aski Nation. As a Deputy his portfolio included economic, business and infrastructure development. From 1981 to 1990, he was the Rights and Treaty Research Director for Grand Council Treaty 9.
Mr. Davey has worked for more than 28 years on First Nation issues mostly related to economic and business development. He is a graduate of Native Studies and Political Science from Trent University, Peterborough, Ontario. He is a member of the Moose Cree First Nation in north-eastern Ontario and currently resides in Thunder Bay, Ontario
Clifford J. Davis, B.Sc. — Director
Mr. Davis has been an independent director of Agnico-Eagle Mines since June, 2008.
He is a graduate of the Royal School of Mines, Imperial College, London University (B.Sc., Mining Engineering). He is a mining industry veteran, and formerly a member of the senior management teams and Boards of New Gold Inc., Gabriel Resources Ltd., TVX Gold Inc., Rio Narcea Gold Mines Ltd. and Tiberon Minerals Ltd. Mr. Davis has held numerous senior executive positions at levels up to and including President, Chief Executive Officer, and Chief Operations Officer with a variety of large multinational mining companies and smaller development companies. These have included RTZ, Kennecott, TVX Gold Inc., Echo Bay Mines Ltd., and Gabriel Resources.
Mr. Davis has more than 40 years of international experience in the operation and development of both underground and open pit gold and base metal mines. His career has given him extremely valuable exposure to bulk mining operations in locations throughout North America, Europe and Africa.
Peter J. Ravenscroft, M.Sc. — Director
Mr. Ravenscroft is an independent mining consultant at Burgundy Mining Advisors based in London, England. He has more than 30 years’ industry experience in resource and project evaluation, geostatistics, mine planning and feasibility studies. Most recently, he was the Head of Global Exploration at Cliffs Natural Resources Inc., following 17 years at Rio Tinto in a range of technical and leadership roles in UK, Australia and Canada, ending as Managing Director, Technical Evaluation based in London.
Previously, he served for ten years in the South African mining industry with De Beers, Anglo American and Gencor (now BHP Billiton). Mr. Ravenscroft holds a M.Sc. (Geostatistics) from the Paris School of Mines and a B.Sc. (Hons) from University of Cape Town.