Stratmin, Cal Graphite first of new graphite producers

With limited production to its name and a sporadic history over 150 years, Canadian graphite is at last finding its feet. All the new production capacity is based in the Grenville geological province of southern Ontario and southern Quebec and involves two companies, one in each province. World production of natural graphite is about 650,000 tonnes with China, South Korea and the Soviet Union contributing 60% of the total. Synthetic graphite is also produced, mostly in the U.S., but the process is lengthy, intricate and the final product too expensive for many uses.

Natural graphite is sold at purities of 90% and upwards and the greater part of Canadian production will be above 93% and in the range of US70-85 cents per lb. Purities above 98% will fetch US$1; while these high purity markets are small at present, they are projected to grow rapidly.

An unusual aspect of graphite pricing is the premium given to coarse flake sizes; a 94% graphitic carbon content at above 65 mesh is much more valuable than a minus 150 mesh product of the same carbon content.

The greater part of graphite production is used in the manufacture of high temperature crucibles and furnace refractories. Other applications include brake linings, dry batteries, powder metallurgy, lubricants and paints. More recent developments involve the use of exfoliated graphite in sheet and foil form.

The two producing Canadian companies are Stratmin (ME) with the Lac-des-Iles mine, 22 km south of Mont-Laurier, Que., and Cal Graphite (VSE), whose operation is 290 km north of Toronto, near Huntsville, Ont., and which The Northern Miner recently visited.

In addition, there are a number of other graphite properties at varying stages of development in the two provinces.

Stratmin’s Lac-des-Iles mine has proven, probable and possible reserves of about 21 million tonnes grading 7.5% graphite. At present, 1,350 tonnes per day are being treated in two mills. The larger mill, which came on stream in April, is situated at the mine site and handles 950 tonnes per day.

The second mill has been leased from Asbury Graphite Quebec, a subsidiary of Asbury Carbons of New Jersey. Asbury had been mining graphite at Notre-Dame-du- Lausin, Que., on a seasonal basis for many years. Stratmin recently took a 15-year lease on the 400- tonne-per-day mill and winterized and modified it to accept Lac-des- Iles ore.

According to Daniel Goffaux, Stratmin’s executive vice-president, production at the 7-day-per-week Asbury operation is 80-87 tonnes per day grading 96-97% carbon; 75% of this material is coming from the new mill. Current mill heads are 6.2% carbon compared with an ore reserve grade of 7.5%, reflecting open pit dilution.

Asbury is committed to purchasing 15,000 tonnes concentrate this year and the following five years, and beyond that at a rate of 10,000 tonnes per year. Additional contracts are being negotiated in Japan and Europe for the balance of the output.

Ontario producer Cal Graphite came on stream in August and had gradually worked up capacity to 1,200 tonnes per day at the time of The Northern Miner visit. By mid- January, 1991, the capacity is expected to double and in early April next year will be increased to 3,000 tonnes per day.

But Cal Graphite is operating on diesel power and has yet to sell any product.

Maximum capacity with the present mill equipment is 3,500 tonnes per day, after which new flotation capacity will be needed. The mill building is spacious enough to accommodate the equipment for a throughput of 10,000 tonnes per day, according to Ed Blanchard, a major shareholder and director who has managed the project from initial drilling through to production.

Amalgamet Canada, a subsidiary of the major European metals company Preussag, is the exclusive marketing agent for Cal Graphite’s product.

Ore reserves (proven and probable) total about 55 million tonnes at 2.5% graphite, with another 83 million tonnes projected.

Six years elapsed between initial diamond drilling and the first production of concentrates. Practically the whole Cal Graphite undertaking was financed by equity; with the mill in operation and almost debt free, the statement for June 30 showed only $1.54 million in outstanding loans.

The orebody at Cal Graphite has a true width of 50-250 ft., dipping 40 degrees and traceable over several thousand feet on surface; it forms part of the spine of a series of hills traversing the property.

Much of the ore for the first nine years will come from the levelling of a nearby hill to lake level, resulting in a low stripping ratio with the current ratio near zero.

A determining factor in countering the low grade of Cal Graphite’s ore is its massive tonnage and easy accessibility. A second vital factor is the softness of the ore which allows an impact crusher product to go directly to column flotation. Expensive ball milling is reserved for the relatively low tonnage of rougher concentrate.

The milling process involves two stages of flotation followed by filtration, drying at 170 degrees C, precise screen sizing of the product and blending the several size fractions to the customer’s requirements, which are frequently exacting.

Open pit mining and coarse crushing have been contracted out and the highly automated mill requires only four men per shift excluding electrical and mechanical personnel.

Another company in Canada close to reaching a production decision is Societe d’Exploration Miniere Mazarin (ME), with proven, probable and possible reserves of 7.1 million tonnes grading 16.7% graphite. The deposit is situated at Fermont, Que., close to the Labrador boundary. Cambior (TSE) has a 50% interest in the property, and if the feasibility study now in preparation is positive, then milling at the rate of about 400 tonnes per day is anticipated.

Stewart Lake Resources (TSE), with minable reserves of about 850,000 tonnes at 8.6% graphite near Kingston, Ont., is expecting to go into production in 1991. The company is negotiating financing.

Also in the same area of the province is Victoria Graphite (COATS). The junior is seeking financing for an 83-tonne-per-day operation; a large proportion of the basic mill units is on site. Proven reserves to a depth of 20 metres total 245,000 tonnes at 6% graphite; more widely spaced drilling suggests a potential of 1.3 million tonnes.

Lodi Metals (VSE) and Princeton Resources (VSE), now BFD Industries, also own significant graphite property in southern Ontario.