Stewart Lake graphite grade bodes will for production

Initial drill findings by Stewart Lake Resources on its Kirkham flake graphite project in Bedford Twp., 25 miles north of Kingston are fully confirming the high grade nature of the deposit, The Northern Miner gathers from President Kenneth McLay. The property is held under a royalty option agreement with Falconbridge Ltd.

Hole No 87-1 cut the two main zones which assayed 13.60% graphitic carbon across 22.0 ft from 155.5-177.5 ft and 12.79% across 22.7 ft from 290.0-317.7 ft.

Hole No 87-2, 100 ft on strike to the southwest, returned 8.93% over a core length of 52.9 ft from 164.3-217.2 ft and 5.79% from 233.6-241.6 ft. Several narrow parallel zones were also intersected, the best running 12.63% across 4.5 ft.

Hole No 87-3 100 ft northeast of No 1 assayed 5.64% across 11.6 ft from 89.4-101.0 ft and 7.03% for 25.8 ft from 110.3-136.1 ft.

Drilling is continuing, with a total of approximately 25 holes planned for this program with the objective of testing a 1,600-ft portion of an electro-magnetic conductor that extends for 9,000 ft.

The company hopes that this drilling will indicate upwards of two million tons. It will then put down a decline and carry out further metallurgical testing. Some years ago Frobisher, an arm of the Falconbridge group which owned the property, closely drilled a 400-ft strike length of the zone with a calculated reserve of 207,160 tons grading 11.2%. This was followed by surface stripping and the trucking of 300 tons to the mill at its Black Donald operation, 60 miles to the north. That mine, which operated through the war and into the early 1950s, was one of the very few profitable graphite operations this country has seen.

The tests it ran on the Kirkam material proved quite favorable, grading 10.4% with a premium flake size well within that used in the refactory industry and producing a 95% concentrate.

While the market for graphite is not large, there now is very limited production in Canada and virtually none in the United States, where the major markets exist and which is growing, particularly as a powder in the continuous casting of steel.

“Our deposit is well positioned to move into the U.S. market,” Mr McLay says, pointing out that the right flake size and grade fetches $400-$600 per ton.

To exercise its option , the company is required to spend $650,000 on the claims by August, 1989, pay Falconbridge $25,000 cash and production royalties, with advance royalties of $50,000 per year commencing August, 1990.

Although not yet finanized, Stewart Lake is currently negotiating for a 46-claim gold property in the Larder Lake area.

The company’s shares were recently listed on the tse where they have been trading actively and reached a new $3.20 high this week. There are outstanding warrants, also listed there.