Monday, October 21, 2013

Maybe Its Not Too Early To Think About Investing In Graphite

Some applications may seem to futuristic to be a reality in our lifetime, but remember that people once thought the internet would never fly.

So what is the real scoop on the growing demand that seems to pressure juniors in this sector. Are we witnessing a shift in global thinking as far as where demand lies now and where we may suddenly find ourselves in the months and years to come?

I think part of what we are seeing is a shift by some investors away from all the glitter of gold and what could be a now stalled silver market. Investors can lose faith or interest in specific sectors but that usually doesn't keep them from trying to make money in another sector.

The trouble as I see it in the retail investing side is so much is lost in translation when it comes to the current value of graphite and what could be a monster in the making. This almost leads me to believe that there is an intentional depression of the industry and information while some larger players on the global stage corner the market on properties.

Maybe they don't want people to think it's the next big thing until they have backed up the truck themselves first? Just my thought since so much seems to run on emotion in an area most investors I know will say they know little about. But they like the hype and momentum that can come from a shift in strategy from gold to graphite.

Lets face it though, in the end surveys need to be done. Targets are drilled and samples are taken and everything costs money. But the mere mention that a company is switching targets and going after graphite seems to spark elation in the hearts of some of the smartest traders I know. This reminds me of the first few whispers "social media" that were slithering along the lips of those poised to set the markets on fire but only a select few got in on those IPO's.

A trend or shift in the markets can be very subtle at first and then slam the markets with a vengeance. I believe this is the third time around now for graphite. At first people scoffed at its importance. Then people started to take a closer look and research the real demand and what it could be used for in the future. I can tell you that when I did my rounds through the net looking up ways the world could use graphite in the future I was totally blown away. It's endless and the best thing may be its closest link to what we already love and use in our daily lives. From TV optics to screens to data storage on micro thin carbon, the list goes on and on.

I don't claim to be an expert and so many investors have chosen not to go long on any investments these days but this may be my favorite long bet. As people sift through whats hot, what was hot and what could be on the short term I think they will slowly move money into this sector. I don't know how big they will go but a small seed planted now could surprise you as the demands grow and the real supply numbers are known.

I have done a lot of research on companies in Canada and found one stands out in my mind as one that could be the next hot thing in this sector. Take a moment to go over what Canada Carbon Inc has to offer investors. I like the share structure and so far dilution seems under control. Mid summer you could have loaded up under 10 cents and some may feel it's in the profit taking zone for the short term and I tend to agree; but that will dry up as the company pushes forward to prove the value of its current asset. The excitment this summer started when R. Bruce Duncan, CEO and Director of Canada Carbon, commented in a news release, "The extremely high Miller graphite purity of 100% Cg reported on July 23, 2013 as the result of preliminary metallurgical upgrading conducted by SGS Lakefield, was unprecedented.

A sample of graphite concentrate that was purified by SGS Minerals Services in Lakefield (Refer to NR of July 23th, 2013) was submitted for glow discharge mass spectrometer (GDMS) analysis. The results of the GDMS analysis that was conducted by Evan Analytical in Liverpool, New York are presented in the table below. The primary advantages of GDMS are its ability to quantify impurities at trace concentrations in high-purity inorganic solids, and to quantify concentrations of up to 73 contaminant chemical elements in a single analysis. The majority of the contaminant elements in the purified Miller graphite concentrate yielded concentrations that were below the analytical detection limit for each, typically at 0.5 parts per million ("ppm") or grams per tonne ("g/t"), or less. The sum of the concentrations of all elements yielded a concentration of less than 350 ppm (or g/t), which by difference translates to an exceptional concentrate grade of 99.965% total carbon ("C(t)"). Please refer to the Note accompanying Table 1.

TABLE 1: Measured trace element concentrations in graphite by GDMS

                         CONCENTRATION                         CONCENTRATION
ELEMENT         SYMBOL (ppm by weight)      ELEMENT   SYMBOL (ppm by weight)
Boron                B            0.12     Titanium       Ti            0.11
Sodium              Na              39     Chromium       Cr              11
Magnesium           Mg             5.7         Iron       Fe              12
Aluminum            Al             3.7       Nickel       Ni            0.26
Silicon             Si              24      Yttrium        Y            0.12
Phosphorus           P            0.85    Zirconium       Zr            0.25
Sulfur               S              14     Tungsten        W            0.38
Chlorine            Cl            0.81      Thorium       Th            0.01
Calcium             Ca             3.5

Note: Only 34% (116 ppm) of the total reported impurity content (approximately 350 ppm) arises from actual measured values (tabled here). The concentrations of 56 elements were included in the total contaminant level calculation by using their limit of detection concentrations (not shown), as the measured value was less than the limit of detection, but could not be assumed to be zero. In this way, 200 ppm of the reported net contaminant level was contributed by just two elements with the highest detection limits, Fluorine and Tantalum, whose detection limits are 100 ppm each, but which may be present at much lower concentrations than their detection limits. The total contaminant level of 350 ppm therefore represents the estimated upper limit for the total contaminant concentration, and the true value may be less than 350 ppm.

These exceptional purity results for graphite obtained with a non-optimized flotation and purification process further support earlier indications that the graphite from the Miller deposit may be suitable for applications requiring ultra-pure grades, such as some core components of nuclear reactors. One such nuclear application criterion was evaluated, as follows.

The impurity concentrations obtained by GDMS were used to calculate the Equivalent Boron Content (EBC) of the graphite, as defined in ASTM Method C1233-09, "Standard Practice for Determining Equivalent Boron Contents of Nuclear Materials", in conjunction with ASTM Standard D7219-08, "Standard Specification for Isotropic and Near-isotropic Nuclear Graphites", which lists the 16 elements of concern with respect to the EBC criterion. EBC is a means of estimating the potential for the impurities contained in the graphite to absorb neutrons when exposed to the controlled neutron flux within a nuclear reactor. Any impurities absorbing neutrons would adversely affect the rate and the control of the nuclear chain reaction.

EBC is calculated as the sum of the EBC of each impurity, such that EBC (impurity) = (EBC factor for impurity) (concentration of impurity (ppm)). Each EBC factor was obtained from Table 1 of ASTM Method C1233-09. A number of contaminants of concern were below the detection limit of the GDMS assay procedure, so the concentration associated with each respective detection limit was submitted for the calculation of the EBC of those contaminants, as discussed in paragraph 3.3 of the method. Desired maximum EBC levels are typically between 1 and 3 ppm, depending on the specifications of end-users. The calculated EBC for this graphite sample was 0.94 ppm, a value indicating higher purity than is required by the noted thresholds.

Indium is contained in the binder material that is required to mount the sample for GDMS analysis. Hence, the EBC calculation based on the GDMS assay must disregard this chemical element. Indium has a small EDC factor, and was not expected to be present in any significant amount in this graphite, so this departure from ASTM method C1233-09 is not considered to be significant. In any case, the type and maximum concentration of any impurity is negotiated between the supplier and the buyer. No off-taker of graphite will have identical product specifications, as those specifications depend on the specific use of the graphite. All potential end-users will require a sample of the graphite concentrate to subject it to their specific evaluation process.

R. Bruce Duncan, CEO and Director of Canada Carbon, commented, "The extremely high Miller graphite purity of 100% Cg reported on July 23, 2013 as the result of preliminary metallurgical upgrading conducted by SGS Lakefield, was unprecedented. Even though the sample submitted to GDMS was of lower purity than that previously obtained, we have shown that the graphite could be suitable for use in nuclear reactors, with a calculated EBC of 0.94 ppm, as compared to the required maximum levels, typically between 1 and 3ppm. Graphite suitable for nuclear applications generally sells at a significant premium to all other graphite products, and very few upgraded graphite products can pass the EBC requirement for nuclear use. These results show the high value and quality of the Miller graphite."

Analytical Method

An approximately one gram sample of the upgraded graphite produced earlier during metallurgical test work at SGS Laboratories, Lakefield, Ont., was securely transported to Evans Analytical Group, Liverpool, New York, where it was prepared for analysis by glow-discharge mass spectrometry (GDMS). In this method, the sample (graphite) is mounted as the cathode in an evacuated tube. Argon gas is ionized to form a plasma, which is directed against the surface of the sample. Atoms at the surface of the sample are sputtered off as ions, which are collected and accelerated by a magnetic field, then entering the mass spectrometer. That process continues until a sufficient mass of the sample has been vaporized, to ensure that a representative sample has been analyzed. The mass spectrometer determines the mass of each atomic nucleus, and counts their frequency, thereby identifying the elements present in the sample, and their concentrations. Standard sample analysis is used to determine a relative sensitivity factor for each element, and determines the limit of detection for each.

ASTM International, formerly known as the American Society for Testing and Materials (ASTM), is a globally recognized leader in the development and delivery of international voluntary consensus standards. Today, some 12,000 ASTM standards are used around the world to improve product quality, enhance safety, facilitate market access and trade, and build consumer confidence.

Remi Charbonneau, Ph.D., P. Geo #290 (an Associate of Inlandsis Consultants s.e.n.c.), an Independent Qualified Person under National Instrument 43-101, confirms the technical information provided in this news release.

On Behalf of the Board of Directors


R. Bruce Duncan, CEO and Director

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

FORWARD-LOOKING STATEMENTS: This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. 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

Canada Carbon Inc.
(604) 638-0971
(604) 638-0973 (FAX)

SOURCE: Canada Carbon Inc.


Disclosure: I do not own shares in Canada Carbon Inc at this time.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.