Graphite drawing an exploration crowd (November 21, 1988)

Yet another Canadian mining company has entered the search for graphite.

Quebec-based junior Mazarin Inc. (TSE) plans to spend almost $1.1 million between now and next May exploring for graphite, as well as the industrial minerals kyanite and dolomite, in the Fermont, Que., area, north of Sept Isles. “I think they’re excellent properties,” said an excited President Regis Labeaume of the area’s deposits. Of the budgeted expenditures, Mazarin will contribute $650,000 through a new financing, while an industrial commission managed by Fermont, known as Le Fonds d’exploration miniere du Nouveau Quebec Inc., is kicking in $30,000.

The remaining $400,000 is coming from the province of Quebec, marking the first time, Labeaume said, the province has provided a junior mining company (as opposed to a major) with an exploration grant. Market potential

How big is the market for natural graphite?

While a few junior mining companies in Canada have been actively exploring for the mineral — Stratmin Inc. (ME) is gearing up for production in Quebec, while Cal Graphite (VSE) and Stewart Lake Resources (TSE) have been busy in Ontario — the general consensus seems to be that whoever gets to production first will be in an excellent position to satisfy a large part of current demand. But, the market does seem to be growing.

Until this year, Canada counted one graphite producer, Asbury Graphite Mills of New Jersey, which operates a mill during the summer months at Notre-Dame- du-Laus, Que. Stratmin recently reported (N.M., Nov 7/88) it has entered into a 15-year agreement with Asbury for the right to lease and operate the mill.

Stratmin plans to mine its own flake graphite deposit located 45 km north of the Asbury mill; it also plans to build its own 500-tonne- per-day mill on that property. A 10,000-tonne bulk sample test is being undertaken by the company this month. Reserves (all classes) at the property are estimated to be 23.7 million tonnes, with an average graphitic carbon content of between 7.2% and 8.12%.

In addition to drawing up an agreement with Asbury for the sale of its concentrates, Stratmin says it is negotiating a sales agreement (N.M., Nov 14/88) with C. ITOH Ceramics Corp. of Japan. Ontario activity

In Ontario, Cal Graphite has been active north of Huntsville shoring up reserves; a low-cost, open pit mining operation of crystalline flake graphite is envisaged.

The company recently reported the near completion of a $1.1 million exploration program at its Graphite Lake project. Preliminary estimates are that proven and probable reserves are “virtually double” the 26.8 million tonnes of drill- indicated reserves outlined in an October, 1986, feasibility study. Construction of a 4,500-tonne-per- day mill is scheduled for completion by late December, with equipment installation to take place during the winter months. A spring, 1989, start-up is planned.

In the eastern part of the province, north of Kingston, Stewart Lake has high expectations for its Kirkham property, where the company says tests indicate a high grade deposit with a mix of coarse, fine and medium-size flake.

Results of a pre-feasibility study undertaken this year indicate the possibility of a low tonnage, high grade operation with annual output of about 12,700 tonnes graphite concentrate. The capital cost to reach production would be about $13 million, with a payback period of less than three years. Depending on the recommendations of the final feasibility study, the mine could become a producer in 1990.

A new graphite zone, located about 300 ft south of the main No 1 zone and accessible from existing underground workings, was recently reported by Stewart Lake. Drilling continues.

Southeastern Ontario once boasted a graphite producer; the Black Donald mine operated from 1943 to 1952. It was reported to have turned out about 40 million lb of concentrate during that period at grades averaging 10-15% graphitic carbon. Iron deposits

The Quebec North Shore and New Quebec region is known for its iron deposits, and towns in that part of the province have come into existence depending solely on that metal for survival. Since 1986, Mazarin and Le Fonds have spent $500,000 ($250,000 each) in the area surrounding the mining town Fermont on exploration for precious and industrial minerals.

Graphite showings on the Lac Knife and Lac Carheil properties, located 27 and 21 km, respectively, south of Fermont, were uncovered in 1987. The showings are located in the Grenville geological province; according to Mazarin vice- president exploration Jacques Bonneau, the formation is generally steeply dipping and trends mainly to the northwest.

At Lac Knife, Bonneau said channel sampling has yielded an average grade of 15.7% graphitic carbon, the highest grade, he said, of the graphite projects currently under development in North America. More than 60% of the trenches remain open at both ends, he said; overburden has hindered the sampling program.

Exploration at Lac Carheil is not as advanced, but mapping and electromagnetic survey work have located graphite-rich schist bands which in some areas are expected to be several metres thick, Bonneau said. Kyanite showing

As for kyanite, a showing of the mineral was uncovered in 1986 by Mazarin on the Lac Croche property located 37 km south-southeast of Fermont.

Preliminary exploration indicates a zone containing 20-40% kyanite in large bluish crystals, 1-2 cm in size. Bonneau reports that on the surface, the rock is often friable and reduced to powder when sampled. An early estimate of tonnage is 4.5 million tons to a depth of 30 m.

According to Bonneau, the United States, Sweden, India and Brazil are the leading producers of kyanite, with only the U.S. and Sweden exporting the mineral. Annual world production of the mineral is about 120,000 tons.

North America’s only producer of the mineral is Kyanite Mining in Virginia, which, according to Labeaume, is searching for a new supply of the mineral.

Industrial applications for kyanite include in blast furnaces, refractory products, glass, cement and ceramics.