Lac Rainy Nord Graphite Project

The Lac Rainy Nord graphite project is located in the most dominant graphite geological regions of Quebec, approximately 22km southwest of the historic mining town of Fermont and 260km north-north-east of city of Sept-Iles. The Lac Rainy Nord graphite project is located approximately 15km east of Route 389, a paved highway which travels north to Fermont.

Access to the Lac Rainy Nord Graphite Project is facilitated by a system of small off-road tracks which connect to Route 389.
The Lac Rainy Nord Graphite Project consists of 32 mineral claims covering an area of approximately 16.74 km2.

Figure 1 illustrates the location of the Lac Rainy Nord graphite project and its location relative to other developed graphite occurrences and deposits in the region.
 

Figure 1: Location of the Lac Rainy Nord graphite project

Historical exploration. at the Lac Rainy Nord graphite project and surrounding lands was comprised of geophysics (MAG - VLF EM), ground and helicopter prospecting, stripping, trenching, geological surveys and sampling. This exploration has identified several primary mineralised targets.

The Lac Rainy Nord graphite project is located in a well understood geological setting which is host to numerous graphite occurrences and deposits owned by major operators. The favourable location and access to the project facilitates exploration and development in a low cost environment.

The Lac Rainy Nord graphite project is located within 5 km of the following known and explored graphite projects:

• Fermont – Site 7 and 9: 15.06% Cg over 1.5 m (sample RX- 5324; Site 7); 11.83% Cg over 1.5 m (sample spline RX- 5328; Site 9); 9.96% Cg over 2.0 m (sample RX- 5332; Site 9); 25.37% Cg (grab samples RX- 5351; Site 9) and 24.69% Cg (grab samples RX- 5353; Site 9).

• Fermont – Site 11: 21.58% Cg over 1.5 m (RX- 5339); 11.39% Cg over 1.5 m (sample RX- 5341); 5.57% Cg over 1.5 m (sample RX- 5338); 13.90% Cg (sample RX- 5352). The size of graphite flakes is from 1 to 5 mm.

• Fermont – Site 3, 5 and 6: 16.87% Cg (sample RX- 5347); 6.78% Cg (sample RX- 5349 - Site 5); 6.25% Cg (sample RX- 5317 - Site 3); 5.49% Cg to 1.5 m (sample RX – 5323 - Site 6). The size of graphite flakes is from 2 to 8 mm.

• Permit 861: 22.27% Cg and 16.68% Cg (sample 2215 and 2214). In this stratigraphic horizon, the content ranges from 5% to 20% graphitic carbon and fine flake.

• Lac Knife: 13.19% Cg (sample RX4560); 9.55% Cg over 2.5 m (sample RX4559). Graphite is very coarse flakes.

The Lac Rainy Nord graphite project was first discovered in 1989 and has been subject to some exploration over that time, however previous exploration was not conducted in a systematic manner and was focused more on the iron potential of the region which has meant that the true mineralisation and potential of the Lac Rainy Nord graphite project has not been fully established.

The Lac Rainy Nord graphite project is contiguous with the Lac Knife Graphite Deposit which is owned by Focus Graphite.

The Lac Knife Graphite Deposit hosts a reported Measured and Indicated resource totalling 9,576,000 million tonnes grading 14.77% graphitic carbon together with Inferred resources of 3,102,000 tonnes grading 13.25% graphitic carbon.

The Feasibility Study completed by Met-Chem Canada Inc. (released on 8 August 2014) on the Lac Knife Graphite Deposit indicates that the Lac Knife Graphite Deposit has the potential to become one of the lowest-cost, highest-margin producers of graphite in the world.

Graphite mineralization is set in migmatized biotite-bearing quartz-feldspar gneiss belonging to the Nault Formation of the lower Proterozoic Gagnon Group.

According to the Québec Ministry of Natural Resources, where this gneissic unit is sheared, brecciated and silicified, coarse graphite flakes and associated sulphide minerals make up 5% to 10% of the rock, with up to 20% or more in the more brecciated zones.

Fuchsite and other iron-rich micas accompany the graphite and sulphide mineralization in the more silicified horizons.

Figure 2 below illustrates the geological setting relevant to the Lac Rainy Nord graphite project.

 

Figure 2: Geology of the Lac Rainy Nord graphite project

High Grade 7.86% Graphitic Carbon (‘Cg’) In Composite Sample From 10m x 10m Outcrop at Lac Rainy Nord Graphite Project

Highlights:

A detailed review of a 1989 sampling program at the Lac Rainy Nord Graphite project has shown the 7.86% Cg result in sample 2306 was not a rock chip sample as previously believed but a composite sample taken from “all four corners” of a 10m x 10m outcrop of graphitic carbon

• The 1989 outcrop sampling program was significantly larger than previously understood and highlights the potential for the Lac Rainy Nord graphite project to be the source of mass high grade graphite mineralisation

• The 10m x 10m graphite rock outcrop from which the sample was taken is towards the northern end of the Lac Rainy Nord Graphite Project within a north-south trending geological lineament

• The geological lineament extends approximately 5km to the southern boundary of the tenement where it continues into the northern boundary of Focus Graphite’s Lac Knife Graphite property and is approximately on strike to the Lac Knife Graphite Deposit located approximately 7 km to the south of Lac Rainy Nord

• Focus Graphite’s Lac Knife Graphite Deposit is one of the highest-grade flake graphite deposits in the world. It contains an NI 43-101 Measured and Indicated reserve of 9,576,000 million tonnes grading 14.27% Cg, and an Inferred resource of 3,102,000 tonnes grading 13.25% Cg

• The Lac Knife Graphite Deposit appears to sit on strike on the same geological lineament as the 10m x 10m graphitic outcrop from which composite sample 2306 was taken

• Significant potential exists to identify additional graphite mineralisation under the shallow unconsolidated overburden over the entire 5km distance between the graphite rich outcrop and Focus Graphite’s Lac Knife property

• The Company plans on completing an airborne Electromagnetic Survey across the entire strike length of the Lac Rainy Nord graphite project which is contiguous with the Lac Knife graphite project owned by Focus Graphite. Contained at the NE zone of the project area is a significant outcrop of high grade graphitic carbon which is along trend of the Lac Knife Project. The aim of the airborne EM survey will be to better define the geological structures present prior to undertaking a drilling programs.