Graphite One Resources Inc. (GPH-TSXV, GPHOF-OTCQX) has shared details of a U.S. Government report which identifies the company’s flagship Graphite Creek deposit in Alaska as among the largest in the world.
The U.S. Geological Survey (USGS) says the Graphite Creek deposit, located in the Kigluaik Mountains 60 kilometres north of Nome on the Seward Peninsula, Alaska is the largest known flake graphite resource in the U.S.A. and is among the largest in the world.
“The new USGS report provides some very important insights that strengthen our knowledge base and deepen our understanding of how Graphite Creek and similar types of deposits are formed,’’ said Mike Schaffner, Graphite One’s Vice-President of Mining. “It comes at a time when the United States needs to step up its game when it comes to Critical Minerals and indicates now valuable USGS’s contributions can be,’’ he said.
“We’re excited to incorporate this information into our 2023 drilling program as we continue to expand our Graphite Creek resource.’’
Graphite is the anode material in a lithium-ion battery and is the single largest component by weight. There are no substitutes, and almost all of it comes from China So, if electric vehicle manufacturers like Tesla Motors Ltd. [TSLA-NASDAQ] and Volkswagon succeed in meeting just a fraction of their widely publicized sales targets, more graphite mines will be needed to support the required lithium-ion battery production.
Graphite One aims to become a vertically integrated American supplier, capable of mining graphite from its Graphite Creek Property. In keeping with that goal, the company has announced a parallel strategy to simultaneously develop a commercial scale battery anode materials manufacturing facility in Washington State and the Graphite Creek Mine.
The goal is to emerge as an integrated business operation producing lithium-ion battery grade materials and other graphite products for the U.S. domestic market on a commercial scale using primarily natural graphite from Alaska.
Graphite One’s October 2022 pre-feasibility study was based on exploration of less than 7.0% of the 16-kilometre-long geophysical anomaly. The anticipated 2023 drilling program will continue to delineate the scope and size of the resource, Graphite One said in a press release.
“The USGS report underscores our confidence that Graphite Creek is truly a generational graphite resource,’’ said Graphite One President and CEO Anthony Huston. “It anchors are supply chain strategy – from our mine to our planned advanced materials manufacturing plant and our recycling facility – to build a 100% U.S.-based graphite supply chain.’’
On March 9, 2023, Graphite One shares closed at $1.87. The shares currently trade in a 52-week range of $2.00 and 93 cents.