Oct 7 2014
Canada Strategic Metals Inc. and Lomiko Metals Inc. are very pleased to announce that a drilling permit for the La Loutre Crystalline Flake Graphite Property has been issued and allows for 29 drill holes. Lomiko optioned 40% interest in the La Loutre Crystalline Flake Graphite Property located in Quebec last month.
The goal of the exploration program is to identify high-grade, near-surface graphite mineralization suitable for conversion to battery-grade graphite. The graphite industry could see exponential growth based on new demand for lithium-ion batteries, which use 10 to 15 times as much graphite as lithium.
Telsa Motor Cars and Panasonic announced a new Lithium-ion Gigafactory in Nevada which is estimated to double the yearly supply of Li-ion batteries by 2020. Currently, synthetic graphite with consistent carbon purity of 99% or more is used in Li-ion batteries. This effects the graphite market in two ways. One, the price of synthetic graphite is likely to increase based on increased demand for all graphite products. Two, if a natural, cost-effective source of consistently high carbon purity graphite, groups such as Telsa could use the material directly in their batteries.
Of particular interest for drilling is an area of the property which reported grab samples up to 22.04% Carbon Flake Graphite (CFG) and Carbon Purity Test results reporting up to 100.00% Carbon Purity in the Large and Extra Large Flake Graphite.
Graphite grab sample assay results derived from a recent sampling and mapping program on the 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. A set of the results from that program were released September 23, 2014. 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. Grab samples are selective by nature and are unlikely to represent the average grade of a deposit. The drilling program is designed to test these areas.
Jean-Sebastien Lavallée (OGQ #773), geologist, shareholder and President and Chief Executive Officer of the Company and a Qualified Person under NI 43-101, has reviewed and approved the technical content of this release.
The Company announces that the service contract with Paradox Public Relations has been renewed. Paradox will focus on developing and expanding the Company's communications with the financial community through a full investor relations program. The services being provided by Paradox Public Relations to Strategic Metals includes marketing to the financial community, an inbound email service, use of an exclusive Paradox database, organization of meetings and presentations, and service calls on behalf of the Company. The agreement is for a 24-month period with a monthly fee of $5,000.
The above-mentioned agreement is subject to the approval of the TSX Venture Exchange.