Feasibility study under way at Mazarin’s graphite play

The company says engineering firm Roche and Associates calculates reserves of almost 8.5 million tonnes (all categories) grading 16.7% graphitic carbon, making the Lac Knife deposit one of the richest in the world.

Reserves, to a depth of 125 m, have been classified as proven, 3.7 million tonnes at 17.4%; probable, 1.2 million tonnes at 16.9%; and possible, 3.6 million tonnes at 16%.

President Regis Labeaume says his company is aiming for annual output of 15,000-25,000 tonnes of graphite concentrate. At that rate, the proven reserves alone would be sufficient for about 25 years production.

An open pit mining method is envisaged. A feasibility study is under way, the preliminary results of which should be available later this month. The full study should be completed by September.

Labeaume says the mine could be in commercial production by late 1990 or early 1991. Potential customers

The company is currently talking with American and European companies interested in purchasing the graphite. Labeaume says the company has yet to decide whether it will mine the deposit alone or seek out a joint venture partner.

The world graphite market is not exceptionally large but it is expanding. The mineral is used in batteries, brake linings, foundries, lubricants and steel-making among others.

The Lac Knife deposit is located about 35 km south of Fermont, near the Labrador border and the communities of Labrador City and Wabush. The area is known for its iron ore deposits.

Mazarin reports that during April and May, a continuous circuit for the treatment of Lac Knife ore was tested in a 150 kg per hour plant at the Centre de Recherche Minerale du Quebec.

The Lac Knife deposit is situated in a fine-to-medium grained quartzo-feldspathic biotite gneiss. Sulphides, mainly pyrrhotite and a lesser amount of pyrite, represent 5-20% of the rock. Sphalerite (up to 2%) and traces of chalcopyrite are present. Carbonates (up to 5%), garnet, kyanite, magnetite and muscovite are also present as accessory minerals.

Most of the graphite observed in the area is in the form of flakes; metallurgical tests indicate more than 60% of the flakes exceed 0.15 mm in size. Drilling has outlined three main mineralized zones: east, central and west.

Mazarin continues to explore the Fermont area for more showings of graphite and also for kyanite, which is used industrially in blast furnaces, refractory products, glass, cement and ceramics.

In other news, Mazarin reports the closing of a $1.65-million financing deal comprising 50 units worth $33,000 each. The deal includes $1 million subscribed as flow-through shares. The flow- through funds will be used for exploration work in the Fermont area.

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