Northern Graphite Corp. [NGC-TSXV; NGPHF-OTCQB] has commenced a high-resolution, horizontal magnetic gradient and electromagnetic (VTEM Plus) airborne survey on its South Okak nickel-copper-cobalt property in Labrador.
Geotech Ltd. of Aurora, Ontario, has been commissioned to carry out the VTEM Plus survey over the entirety of the South Okak property. Approximately 1,450 line-km of data will be collected. The survey will provide better definition of all known targets on the property, potentially uncover new targets and provide valuable information in preparation for the company’s 2023 phase 1 drill program. All permits have been received from the Newfoundland and Labrador and Nunatsiavut governments to commence the survey.
The South Okak property consists of 473 claims covering 11,825 hectares prospective for magmatic nickel sulphide deposits similar to Valeâ€™s Voisey Bay mine 80 km to the south. The South Okak area returned some of the best intersections outside of Voiseyâ€™s Bay in the 1990s with limited follow-up due to a subsequent decline in nickel prices. Exploration efforts during Northernâ€™s 2021 program confirmed the presence of significant Ni-Cu-Co values from numerous gossans on the property. Geological work during 2021 has also helped to better define structures and controls on mineralization at South Okak which enabled the airborne survey to be better oriented to maximize detection of EM conductors related to mineralization.
Hugues Jacquemin, CEO, said, â€œSouth Okak adds an exciting exploration element to the company and provides potential diversification into other high-demand battery minerals.â€
Northern has an option to earn up to an 80% interest in the South Okak property by spending $1.5-million on exploration over four years and making milestone payments of $550,000 in cash and shares.
During May, Northern Graphite shipped 1,085 tonnes and 965 tonnes were sold for total revenue of US$1,537,356 at an average price of US$1,593/tonne. Although most of the volume from the Lac des Iles mine in Quebec is contracted on an annual basis, in early June, Northern received a spot order for 152 tonnes of its 80×150/95 grade at US$1,900MT to be shipped in July. This shows the market is tightening for this type of product in North America. Currently, Northern has a backlog of orders for 880 tonnes with a value of US$1,528,000.
Northern Graphite is a TSX Venture Exchange-listed Canadian company focused on becoming a world leader in producing natural graphite and upgrading it into high-value products critical to the green economy, including anode material for lithium batteries/electric vehicles, fuel cells and graphene, as well as advanced industrial technologies.
Northern is the only significant graphite producing company in North America and will become the third-largest non-Chinese producer when its Namibian operations come back on line in the first half of 2023. The company also has two large-scale development projects, Bissett Creek in Ontario and Okanjande in Namibia, that will be a source of continued production growth in the future. All projects have battery-quality graphite and are located close to infrastructure in politically stable countries.