March 7th, 2016, Vancouver, BC, Canada – Canada Carbon Inc. (the “Company”) (TSX-V:CCB), (FF:U7N1) announces that it has begun a Pre-Feasibility Study, as recommended by the Preliminary Economic Assessment prepared by Tetra Tech, on the portion of the Miller property that was the subject of the PEA and resource estimate (“Phase 1 of the Miller Project”). The Company has already completed a 47 hole, 3,405.5 metre in-fill drill program to provide additional assay data required to upgrade our inferred graphite and marble resources to measured or indicated resources. The core samples are currently at Actlabs, Ancaster for analysis. The new data from the additional drilling performed on the Miller marble zone will provide the Company with sufficient information to request a Quarry Lease for its marble.
Prior to production of marble, the Company must obtain authorization from the “Commission de la Protection du Territoire Agricole du Quebec” (“CPTAQ”) and Certificates of Authorization from the Ministry of Sustainable Development, Environment and the Fight against Climate Change (“MSDEFCC”). The CPTAQ is an organization that protects farm land. The Company has contracted a number of consultants to confirm the unsuitable nature of the Miller land for agriculture. The consultants are currently producing the necessary reports to request the authorisation from the CPTAQ and delivery of the authorization is expected by September 2016.
Environmental assessments, including hydrology, hydrogeology, and floral and faunal assessments for the Miller property, and hydrogeology and floral and faunal assessments for the Asbury property, are already well-advanced, and should be completed before the end of the summer of 2016. Applications will then be submitted to the MSDEFCC, to obtain Certificates of Authorisation to operate a marble quarry as part of Phase 1 of the Miller Project. Social impact studies and public consultations are needed for the Miller mine parts of the Project including the graphite purification thermal plant before applications to obtain the Certificates of Authorization are submitted.
Canada Carbon has hired a land surveyor that is familiar with mining permits to perform a land survey of the lots and of our proposed mining permit limits. The survey is expected to be completed in March 2016.
Canada Carbon Executive Chairman and Chief Executive Officer Mr. R. Bruce Duncan stated, “We are pleased to be advancing the Miller Project on multiple stages concurrently. Environmental assessments were identified early on as the elements requiring the lengthiest timelines for completion, so those studies were initiated as soon as the Company’s in-house modeling suggested that mineral extraction had a reasonable prospect for demonstrating positive economics. That decision has allowed the Company to accelerate the completion of all required reports for Certificates of Authorisation, minimizing the permitting timeline, to the extent possible.”
Based on input from consultants regarding the permits and authorisations required for production, the estimated timelines required for such authorisations and the work completed to-date, the Company anticipates, subject to obtaining positive results from its pre-feasibility study, that it will begin the production of marble on or about February 2017 and the production of graphite on or about January 2018. The following chart provides a high level summary of the permitting and operational timelines for Phase I of the Miller Project. For an enlarged view of the chart, please click on this link, http://www.canadacarbon.com/images/schedule_graphite_marble_lg.jpg
The information provided in this press release is a simplified summary of the permitting process, intended to provide an overview of the timelines and progress milestones anticipated by the Company as it works towards obtaining the approvals required to develop Phase 1 of the Miller Project. Complete details will be provided in the Preliminary Economic Assessment, to be filed to the Company’s SEDAR profile not later than April 18, 2016 (i.e. the date that is 45 days from the press release giving the economic summary of the Project).
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There is no guarantee that all or any part of the Mineral Resource will be converted into a Mineral Reserve. Inferred Resources are considered too geologically speculative to have mining and economic considerations applied to them and to be categorized as Mineral Reserves (as defined in NI 43-101). Additional trenching and/or drilling may be required to convert Inferred Mineral Resources to Measured or Indicated Mineral Resources. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There is no certainty that the reserve’s development, production and economic forecasts on which a PEA is based will be realized.
Dr. John Huang, P.Eng., of Tetra Tech, is a Qualified Person as defined by National Instrument 43-101 (“NI 43-101”) guidelines, and has reviewed and approved the technical related content of this news release.
CANADA CARBON INC.
CEO and Director
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FORWARD LOOKING STATEMENTS: This news release contains forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedar.com).