OTTAWA, ONTARIO -- (Marketwire) -- 03/07/13 -- Northern Graphite Corporation (TSX VENTURE: NGC) is pleased to announce very positive results from a 61 hole, 3,425 meter drilling program on the Bissett Creek graphite project. The drill program was designed to infill a significant portion of inferred resources with the objective of upgrading them to the measured and indicated categories. In addition, the potential for higher grade zones to extend outside of the current resource model was tested. All 61 holes returned widths and grades as good as or better than those in the recently completed bankable Feasibility Study ("FS").
A new resource estimate based on the drill results is expected to be completed by the end of March. The existing mine plan will then be revised and FS economics updated and released within a couple weeks thereafter. The current mine plan includes 1.5 million tonnes of inferred resources that are treated as waste with zero grade and it excludes a substantial amount of higher grade inferred resources. It is anticipated that the revised mine plan will show an increase in grade, a reduction in costs and a much longer mine life. The resource update and revised FS will be completed by AGP Mining Consultants.
Gregory Bowes, CEO, commented that: "the Bissett Creek project has low engineering, technical and political risk, reasonable capital costs and competitive operating costs. It is expected to produce the highest quality concentrates in the industry." He added that "Once the FS is updated, we anticipate finalizing discussions with strategic partners and putting the mine financing package together."
The current resource estimate consists of 25,903,000 tonnes of indicated resources and 55,038,000 tonnes of inferred resources at a 1% cut-off grade (mineral resources are not mineral reserves and do not have demonstrated economic viability). The FS estimated a probable reserve of 23 million tonnes at a grade of 1.89% Cg based on indicated resources only. Thirteen infill holes were drilled within the FS pit and returned significant intersections with grades higher than the average resource grade. Almost all the holes drilled outside the FS pit also intersected higher grades (see table and map). Many holes also contain lower, but still ore grade intersections, higher up in the hole. This material will likely be stockpiled and processed later in the mine life.
----------------------------------------------------------------------------Hole From (M) To (M) Width (M) Cg%----------------------------------------------------------------------------MFT-12-001 57 90 33 2.94----------------------------------------------------------------------------MFT-12-002 42 89 47 2.29----------------------------------------------------------------------------MFT-12-003 69 92 23 2.88----------------------------------------------------------------------------MFT-12-005 45 103 58 2.75----------------------------------------------------------------------------MFT-12-006 33 60 27 2.55----------------------------------------------------------------------------MFT-12-007 27 42 15 2.52----------------------------------------------------------------------------MFT-12-008 44 63 19 2.85----------------------------------------------------------------------------BC-12-111 30 48 18 2.14----------------------------------------------------------------------------BC-12-201 23.5 54 30.5 2.66----------------------------------------------------------------------------BC-12-202 21 54 33 2.66----------------------------------------------------------------------------BC-12-203 36 57 21 2.66----------------------------------------------------------------------------BC-12-204 30 46 16 2.66----------------------------------------------------------------------------BC-12-205 24 51 27 2.53----------------------------------------------------------------------------BC-12-206 27 54 27 2.70----------------------------------------------------------------------------BC-12-207 18 51 33 2.31----------------------------------------------------------------------------BC-12-208 58 77 19 2.56----------------------------------------------------------------------------BC-12-209 27 46 19 2.33----------------------------------------------------------------------------BC-12-210 18 41 23 2.25----------------------------------------------------------------------------BC-12-211 24 41 17 2.65----------------------------------------------------------------------------BC-12-212 20 36 16 2.68----------------------------------------------------------------------------BC-12-213 21 37 16 2.97----------------------------------------------------------------------------BC-12-214 12 33 21 2.41----------------------------------------------------------------------------BC-12-217 36 53 17 2.02----------------------------------------------------------------------------BC-12-18 19 45 26 2.97----------------------------------------------------------------------------BC-12-219 9 33 24 2.68----------------------------------------------------------------------------BC-12-220A 18 39 21 2.41----------------------------------------------------------------------------BC-12-221 15 42 27 2.65----------------------------------------------------------------------------BC-12-222 27 45 18 2.57----------------------------------------------------------------------------BC-12-223 9 42 33 2.45----------------------------------------------------------------------------BC-12-224 12 42 30 2.32----------------------------------------------------------------------------AGP-12-01 36 55 19 2.82----------------------------------------------------------------------------AGP-12-02 27 54 27 2.66----------------------------------------------------------------------------AGP-12-03 40 70 26 2.38----------------------------------------------------------------------------
