Walker Lump/Vein Graphite Property
Based on subsequent analysis conducted by Activation Laboratories Ltd. (Actlabs) of Ancaster, Ontario using the IR process (Leco), the results confirmed the presence of a high quality lump/vein graphite mineralization. Ms. Robillard commented on the results as follows: "Graphite occurrence was observed during recent fieldwork (2013-06-21) from an ancient shallow exploitation pit on an easily accessible part of the property. The old pit and adjacent waste rocks pile exposed at least two sets of intersecting graphite veins, with thickness ranging from 2 to 10 cm. Vein material was sampled and sent to Actlabs in Ancaster. The laboratory returned the graphite assay value (89.5% Cg) that is reported here. One of the veins was followed at surface for at least 6 meters along strike and many small mine pits and trenches were found in the immediate area, indicating the presence of more graphite mineralization."
Paul Ogilvie, Chief Executive Officer of Torch commented, "We are very pleased with the grade of 89.5% Cg as is in line with lump graphite properties in Sri Lanka. The results are very encouraging as we work towards building a 100% lump graphite company. Our next steps will be to analyse the purity and upgrade the material to the highest purity possible, toward the 99.9 % Cg goal".
He also commented: "In the race to bring a new North American graphite property into production it is clear to us that these results confirm the value of our plans to rapidly develop into a lump graphite producer. We believe the presence of high grades such as those outlined today represent a competitive advantage, particularly in terms of the costs required to build (capex) mineral processing facilities and recover and refine (opex) product. Add to that the fact that lump graphite has a wide array of market applications and the result is a belief that we can quickly move out front in the effort to build a new North American graphite production mine and facility".
Subsequent work on the Walker property is immediately planned and will comprise a more complete sampling program, and structural analysis of the exposed vein system. Detailed prospecting with the use of Beep-Mats will also be used on the lateral extension of the vein systems. This coming phase will allow a better understanding of the mineralization and of geophysics methods that can be used to explore and discover graphite veins on the Walker property. In this regard, Torch River Resource's Qualified Person and P. Geo. Isabelle Robillard further commented: "We are confident that follow-up works will result in the discovery of further occurrences of high-grade graphite and will significantly improve exploration techniques for the particular context observed at the Walker property which consists of very rich lump graphite veins."
Lump graphite typically has grades from 50% to 95%, with an average grading in the 65% to 80% range. Grades of this sort are not unusual in deposits such as those mined in Sri Lanka. As such they offer the potential to direct ship product to an upgrade facility with limited primary processing. This also permits processing to high purity levels up to 99.9% Cg to be much more cost effective as well. The combination of low costs and market prices for lump graphite make it a strategically sound business model in the emerging natural graphite sector.
ABOUT LUMP/VEIN GRAPHITE
Lump or Vein graphite is considered to be one of the rarest, commercially valuable, and highest quality types of natural graphite. It occurs in veins along intrusive contacts in solid lumps and is only actively mined in Sri Lanka (Mores, 2007). Given the carbon content typically found with lump/vein graphite recovery operations and costs will normally be lower than flake or amorphous graphite recovery. Lump graphite processing techniques can include everything from hand sorting of large concentrated samples to standard crushing, grinding, froth flotation and milling. Lump/vein graphite is suitable for many of the same applications as flake graphite giving it a distinct competitive edge in terms market prices and product applications.
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FORWARD LOOKING STATEMENTS: This news release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Torch's business and affairs. In certain cases, forward-looking statements can be identified by the use of words such as ''plans'', ''expects'' or ''does not expect'', "intends" ''budget'', ''scheduled'', ''estimates'', "forecasts'', ''intends'', ''anticipates'' or variations of such words and phrases or state that certain actions, events or results ''may'', ''could'', ''would'', ''might'' or ''will be taken'', ''occur'' or ''be achieved''. Such forward-looking statements include those with respect to Such forward-looking statements include those with respect to the Company's intention to complete the Walker acquisition (the "Transaction"), the Company's intention to divest its existing mineral properties (the "Divestures"), the anticipated closing time of such transactions, the intention of Torch to undertake a broad sampling, mapping and exploration program this summer (the "Work Programs") and to pursue its strategy.
These forward-looking statements are based on current expectations, and are naturally subject to uncertainty and changes in circumstances that may cause actual results to differ materially. The forward-looking statements in this news release assume, inter alia, that the conditions for completion of the Transaction and Divestures, including regulatory approval, will be met, that the Company will be able to arrange sufficient funding for the Transactions and the Work Programs and that there are no other material obstacles to pursuing the new strategy.
Although Torch believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that these expectations will prove to be correct. There are risks which could affect Torch's future results and could cause the results to differ materially from those expressed in these forward-looking statements including negotiation failure or delay, the impact of general economic conditions in Canada and the risk that they will deteriorate, industry conditions, including fluctuations in the price of supplies and the risk that they will increase, that required consents and approvals from regulatory authorities will not be obtained, that activity in the lump or vein graphite business will not be at the level or of the nature anticipated, liabilities and risks inherent in Torch's operations, technical problems, equipment failure and construction delay.
Statements of past performance should not be construed as an indication of future performance. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors, including those discussed above, could cause actual results to differ materially from the results discussed in the forward looking statements. Any such forward-looking statements are expressly qualified in their entirety by this cautionary statement.
Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking information is provided as of the date of this press release, and Torch assumes no obligation to update or revise them to reflect new events or circumstances, except as may be required under applicable securities laws.
All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedar.com).
About Torch River Resources Ltd
Torch River Resources is a publicly traded junior mining exploration company with a number of mining claims. The Walker graphite property operated as a mine from 1890 through to 1920 and is located in an area known as the Grenville belt. It is approximately 30 km north-east of Ottawa between Montreal and Ottawa and has the potential for high quality graphite deposits that have been actively examined and reported on for many years in this area. The Company’s Mount Copeland molybdenum deposit lies within metamorphic rocks flanking the southern margin of Frenchman Cap Dome, 32 kilometers northwest of Revelstoke, British Columbia. The Fort Elden copper property is comprised of 18 mineral tenures that total 2,828.6 hectares in area. The mineral claims are located 100 km west of Fort St James, BC. The Red Bird deposit is comprised of three zones of molybdenum concentration referred to as the Main, Southeast and Southwest zones within a property totaling 1,836 ha (4,400 acres) and is located 133 km southwest of Burns Lake and 105 km north of Bella Coola. The Company plans to divest each of these properties through a sale or joint venture, thus allowing it to focus on building a graphite mining company.
Torch River Resources Ltd