La Loutre Flake Graphite Property
La Loutre Project
The La Loutre Property was originally explored for base and precious metals by Soquem in 1989. Based on the results of a helicopter-borne electromagnetic (EM) survey, prospecting and reconnaissance geological mapping, their work identified several zones of parallel conductors each measuring as much as 2 kilometers long. Ground exploration followed in 1990, and according to historical reports by Levesque and Marchand, graphite is present in different lithologies on the property.
The geology is consistent with the Central Metasedimentary Belt of the Grenville Province and includes quartzofeldspathic rocks, quartzite, biotite gneiss, marble and locally pegmatitic quartzofeldspathic rocks. Graphite is locally present in quartzite and biotite gneiss and in shear zones where the graphite content usually ranges from 1-10% graphite on surface, including visible flakes, with the showings indicating an apparent strike length of approximately 5 kilometers, giving a large prospective area to explore for a graphite resource.
Graphite grab sample assay results derived from the Company's recent sampling and mapping program on the La Loutre property. The sampling program has confirmed a graphite bearing structure covering an area approximately 7 kilometers by 1 kilometer with results of up to 22.04% graphite in multiple parallel zones of 30-50 meters wide. Another area has also been identified covering approximately 2 kilometers by 1 kilometer in multiple parallel zones of 20-50 meters wide which includes results up to 18% graphite.
La Loutre Graphite Resource
The La Loutre Flake Graphite Property of 18.4 M Tonnes of 3.19% Indicated and 16.7 M Tonnes at 3.75% Flake Graphite Inferred with a cut-off of 1.5%.
The sensitivity table also features 4.1 M Tonnes of 6.5% Indicated and 6.2 M Tonnes at 6.1% Flake Graphite Inferred with a cut-off of 3%.
The Resource is calculated on the Graphene-Battery Zone only and does not include recent high grade intercepts of 28.5 Metres of 16.53% Cg and 21.5 Metres of 11.53% Cg reported January 6, 2016 and 9% over 90.75 metres reported September 24th 2015 from the Refractory Zone.
2016 Pit constrained Mineral Resource Estimate (Indicated and Inferred resources) at different cut-off grades – La Loutre Property
The Independent and Qualified Persons for the Mineral Resource Estimate, as defined by NI 43-101, are Bruno Turcotte, M.Sc., P.Geo., and Guilhem Servelle, M.Sc., P.Geo, both of InnovExplo under the supervision of Vincent Jourdain, Ph.D., Eng., Technical Director of InnovExplo Inc.
The effective date of the estimate is January 15, 2016.
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
Pit constrained results are presented undiluted within a Whittle-optimized pit shell, designed with a 30-m buffer around lakes.
The estimate includes 18 graphite-bearing zones grouping elevated carbon graphite grade (assays > 4% Cg), 4 graphite-bearing zones containing low carbon graphite grade (assays < 4 % Cg), 5 graphite-bearing quartzite (assays < 4% Cg), and a remaining external envelope hosting isolated low carbon graphite grade.
Pit constrained resources were compiled at cut-off grades of 0.5, 0.6, 0.8, 1.0, 1.5, 2.0, 2.5 and 3.0 % Cg. The official Pit constrained resource is reported at a cut-off grade of 1.5 % Cg.
Cut-off grades must be re-evaluated in light of prevailing market conditions (graphite price, exchange rate and mining cost).
Density (g/cm3) data used is on a per zone basis varying from 2.70 to 2.85 g/cm3.
A minimum true thickness of 4.0 m was applied, using the grade of the adjacent material when assayed, or a value of zero when not assayed.
Based on a study of the effect of high-grade values on the mean and standard deviations, as well as on log-normal histograms and probability plots, no raw assay was capped within the mineralized zones.
Compositing was done on drill hole sections falling within the mineralized zones (composite = 1.5 m).
Resources were estimated using GEOVIA GEMS 6.7 software from surface drill holes, using inverse distance squared (ID2) interpolation method in a block model (block size = 5 m x 5 m x 5 m).
By default, interpolated blocks were assigned to the Inferred category.
The reclassification to an Indicated category is defined in areas of spatial continuity in terms of information density visually observed and supported by the maximum distance to drill hole composites less than 30m.
Calculations used metric units (metres, tonnes and %).
The number of metric tonnes was rounded to the nearest hundred. Any discrepancies in the totals are due to rounding effects; rounding followed the recommendations in NI 43-101.
InnovExplo is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political, marketing or other relevant issue that could materially affect the mineral resource estimate.
Whittle parameters used (all amounts in Canadian dollars): Reference Mining cost=$3.75, milling cost=$9.40/t, G&A=$2.11/t, graphite price=$1,910/t, milling recovery=95%, wall slopes of 45 degrees in rock and 18 degrees in overburden.
La Loutre Graphite Purity Results
|US Mesh Sieve Size||Sample #1
|Size class||Grade, % Graphite|
|200 – 100 mesh||22.12%||Small||100.00%|
|>50 mesh||36.66%||Extra Large||87.72%|
|Total ( 200)||85.74%||Average Grade||94.74%|
|200 – 100 mesh||21.26%||Small||98.15%|
|>50 mesh||35.67%||Extra Large||96.15%|
|Total ( 200)||87.00%||Average Grade||97.45%|
|200 – 100 mesh||23.68%||Small||100.00%|
|>50 mesh||27.47%||Extra Large||100.00%|
|Total ( 200)||85.42%||Average Grade||99.86%|
Graphite Grab Sample Results
|Graphite Results (Sample Number & Graphite Percentage)|
* Grab samples are selective by nature and are unlikely to represent the average grade of a deposit.