Big North Graphite (TSXV:NRT2) is a graphite development and exploration company focused on select projects in Mexico and Canada. The Company acquired 3 past producing amorphous graphite mines in Sonora, Mexico and is working towards accelerating the restart of the Nuevo San Pedro amorphous graphite mine.
Big North Graphite spent the first half of 2013 completing the development work required tp re-start the Nuevo San Pedro mine, including the delivery of equipment, clean up of access roads, installation of electrical and ventilation systems and the stabilization and repair of existing workings.
The Company has started assembly of a processing plant that will be used for stockpiling, crushing, screening, sizing and drying of graphite to the specifications of individual future customers. Further, the Company has commenced a strategy of buying unprocessed amorphous graphite from local miners who do not possess the ability to process or ship to end users. Big North will be purchasing graphite from local producers to supplement production from the Nuevo San Pedro project. The Company plans to process the purchased graphite to the specifications of future customers and re-sell the purchased graphite at market prices, capturing the difference in prices.
Investment Highlights
- First graphite sale completed in August, 2013
- Projects located in geologically favorable, politically stable jurisdictions
- San Jose de Moradillas is an area of excellent infrastructure and access and has a rich history of amorphous graphite mining spanning over 100 years
- Amorphous graphite accounts for 55% of natural graphite market and over 90% of production was out of China in 2011 Big North is only TSX.V company pursuing amorphous graphite
Key Properties
Sonora Mexico Amorphous Graphite Project
Big North Graphite Corps Sonora Mexico Graphite Projects are prospective for industrial graphite deposits, specifically amorphous graphite. The project consists of two concessions, the 11.11 hectare Nuevo San Pedro concession, 67 kilometres southeast of Hermosillo, Mexico and the 144.60 hectare Akiwiki concession, 72 kilometres southeast of Hermosillo. Both concessions are road accessible from Hermosillo.
Big North acquired the issued and outstanding shares of Grafito La Barranca SA de CV, which holds a 50% interest in the Nuevo San Pedro concession and a 100% interest in the Akiwiki concession. There is a 3% Net Smelter Return Royalty associated with the Akiwiki concession, while there is no Royalty associated with the Nuevo San Pedro concession.
The Nuevo San Pedro concession is entirely underlain by non-marine, brackish and shallow marine clastic sediments and coal or graphite of the Triassic Barranca Formation. The graphite horizons are thought to be the metamorphic equivalents of the anthracite horizons. The Akiwiki concession is underlain by the same Barranca Formation units and is also intruded by Cretaceous to Tertiary granites to granodiorites.
Nuevo San Pedro
The Nuevo San Pedro property3 is located in the prolific San Jose de Moradillas graphite region in the mining friendly state of Sonra, Mexico. The San Jose de Moradillas region has a long and rich history of amorphous graphite production that spans more than 100 years. Nuevo San Pedro is located on a 1.1 sq km mining concession with the same name, which is situated about 45 km southwest of the City of Hermosillo. The property has good infrastructure and access.
Big North Graphite has completed the first two phases of development at Nuevo San Pedro, which includes the delivery of equipment, clean up of access roads, installation of electricity and ventilation systems, receipt of permits to use dynamite to blast at the mine and the stabilization and repair of the existing workings.
Aki Wiki
In November 2012, Big North acquired the Aki Wiki Property located in the region of San Jose de Moradillas, approximately 45 kilometers southwest of the city of Hermosillo, Mexico. There is good infrastructure and access, and the 14.5 sq km Aki Wiki mining concession is in the same region as the Nuevo San Pedro mine.
The Griffith/Brougham Graphite Project
Big North Graphite acquired 100 percent interest in the Griffith/Brougham Graphite properties4 from Zimtu Capital in March 2012. The project consists of approximately 6,500 hectares positioned in central southeastern Ontario in a district where other graphite projects are actively being developed. Big North Graphites Griffith/Brougham property is situated in the same area along with Northern Graphite Corps Bissett Creek project and Ontario Graphite Ltd.s Kearney property.
The Griffith/Brougham properties5 have proximal access to well-established existing infrastructure. The location of the Brougham Graphite Property is anchored by two historic graphite occurrences to the southeast according to information from the Ontario Geological Survey maps from the 1970s. The graphite exploration target covers substantial tracts of graphite-prospective Grenville-age marble geology which have yet to be explored using modern technology.
In early June 2012, Big North Graphite completed high resolution electromagnetic airborne surveying on both the Griffith/Brougham properties.
In total 1,187 line kilometres were flown, with flight lines 100m apart, allowing for detailed mapping of stratigraphy and conductive features. Preliminary data suggests that both properties have conductors present, including coincident features to the known graphite showings. The results of the EM survey will be used to direct a field program of ground geophysics, mapping and sampling.
The Grand Lac du Nord Project
The Grand Lac du Nord property6 is located approximately 140 kilometres northwest of Sept-Iles, Quebec. The Big North Graphite project, accessible by road, consists of one contiguous claim block totaling approximately 2,009 hectares or 20.09 square kilometres.
Grand Lac du Nord is 100 percent owned by Big North Graphite and contains a graphitic paragneiss formation that is approximately eight kilometres in length by one to two kilometers in width. The formation consists of quartz, crystalline flake graphite, biotite and sulphides. Other graphite deposits and mines in Quebec include Focus Metals Inc.s Lac Knife deposit and Timcal Graphite and Carbons Lac des Iles mine.
A second parallel formation at the Grand Lac du Nord Project consists of a sillimanite paragneiss band, also eight kilometres in length and approximately one to two kilometers in width. This high quality band contains quartz-feldspars, sillimanite, graphite, biotite, garnet and cordierite, intercalated with bands of quartzite.
Big North Graphite intends to mount an exploration campaign on the property commencing with a complete compilation of historic geologic work followed by surface work, trenching and diamond drilling.
Summary
Big North aims to become one of the first TSX.V junior companies to capture some of the graphite market through the development of the Companys Mexican Amorphous graphite projects in Sonora Mexico. The Company is working towards accelerating the re-start of the previously active Nuevo San Pedro project, and has completed first and second sales of graphite .
The Company will continue to focus on increasing production, enhancing processing, growing sales and securing long-term offtake partners.
Disclaimer: While Big North intends to re-start the Nuevo San Pedro mine, the Company wishes to clarify that the Company has not established mineral resources and has not completed a valid mining study (as defined by NI 43-101) to support its production decision. Historically, a production decision under these circumstances results in much higher economic or technical risk. This is due to geological, mining, engineering, metallurgical engineering, environmental, socio-economic, taxation, political, infrastructure, legal and other issues that may impact such projects. Furthermore, without a pre-feasibility or feasibility study and a graphite reserve, there can be no assurance that operations at Nuevo San Pedro will be profitable. The re-commissioning of the past producing Nuevo San Pedro Mine without a feasibility study, relies on the technical expertise of the Companys management, board of directors, advisors and consultants. Managements decision to proceed to production without a feasibility study was based on an internal evaluation of the Nuevo San Pedro mine and its potential
Management
Spiro Kletas President, CEO, and Director
Mr. Kletas has over 10 years experience in the financial industry with 7 years in the public capital markets, working for several Toronto Exchange-listed companies in project procurement, corporate development and financing.
Andrew Rees Director
Mr. Rees is currently President and CEO of WellStar Energy Corp. and sits on the board of directors of several publicly trading companies. Mr. Rees brings 15 years of public company experience having been involved with developing projects from concept to production. Mr. Rees has been directly involved in raising over $150 million for junior resource companies.
Dean Nawata Director
Mr. Nawata has over 18 years of public market experience, nine of which he spent as a licensed stockbroker focusing on financing of junior mining and oil/gas projects with Nesbitt Burns, Research Capital and most recently, Raymond James. Mr. Nawata currently holds a position in Business Development for 49 North Resources.
Erik Ostenso7, P.Geo. Director
Mr. Ostensoe is a consulting geologist with more than forty years direct involvement with the mining and mineral exploration industries. He is a graduate in Honours Geology of the University of British Columbia and is a member of the BC Association of Professional Engineers and Geoscientists and the Northwest Territories/Nunavut Association of Professional Engineers, Geologists and Geophysicists.
Connie Norman Corporate Secretary
