Stewart Lake seeks funding to develop graphite property

Annual output from the project, situated north of Kingston, Ont., would be 8,000-9,000 tons graphite concentrate.

President Richard Scratch noted a feasibility study prepared by Kilborn Ltd. and said the project would cost about $9.8 million to place into production.

Discussions continue, he added, regarding financing to build the production facilities and initiate mining.

Mineable, diluted reserves total 1.02 million tons grading 8.61% graphitic carbon, sufficient for about 12 years of operation.

Mining plans call for the initial development of zone 2 by quarry during the first three years, with underground development of zone 2 slated for years 3-to-9. Zone 1 south will be developed from underground during years 10-to-12.

The potential exists to expand reserves, Scratch said. Property targets not included in the study are zone 1 north, zone 3 and the southern extension of zone 1 south.

The study calls for a 5-day-per- week mining operation, one shift per day, at a rate of about 365 tons per day. The mill would operate seven days per week at a rate of about 250 tons per day.

Scratch said negotiations are under way with end-users to secure medium-to-long-term marketing contracts for the graphite concentrate.

Rezoning and permitting applications, he said, will be filed with the pertinent authorities and regulatory bodies, and public meetings will be organized to discuss the impact (environmental and in other areas) of the Kirkham project.

Earlier this year, Stratmin Inc. (ME) entered production at its graphite property near Mont-Laurier, Que. Stratmin is leasing the old Asbury mill in the same area of the province while it constructs its own mill at the mine site. Gearing up for production at a graphite property north of Huntsville, Ont., is Cal Graphite (VSE).

Canadian graphite exploration plays include projects by Societe d’Exploration Miniere Mazarin (ME) near Fermont, Que., near the Labrador border; Exploration Brex (ME) near Mont-Laurier; Black Hawk Mining (TSE) and Lodi Metals (VSE) near Perth, Ont.; and Victoria Graphite (COATS) near Portland, Ont.

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