Strike Graphite's new focus is on the newly acquired Saskatchewan graphite properties (Simon Lake and Deep BayEast). ResourceClips and Damien Lowry discuss the projects in the February 15, 2012 feature.

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From Gold to Graphite
Strike Picks up Projects in Saskatchewan and Quebec
~ By Greg Klein - February 15 2012
Strike Gold is now Strike Graphite TSXV:SRK. The new name reflects a new focus that’s Some 15 kilometres west sits the Deep Bay Mine, a project owned by two native bands
been evident since September, when the company acquired two Saskatchewan graphite that was approaching production until work stalled. It has a non-43-101 resource of 1.8
properties, Simon Lake and Deep Bay East. Since then, Strike has hit the fast track with million tonnes grading 10.32% carbon.
ambitious exploration plans and, just yesterday, another acquisition, the Wagon Graphite
Property in Quebec. The company’s September 2011 option agreement allows Strike to earn a 100% interest
in the two properties by paying Zimtu Capital TSXV:ZC and 877384 Alberta Ltd a total of
“Our advantage is first-mover advantage,” says Corporate Development Manager $325,000 and issuing 3 million common shares to the two companies, which retain a 3%
Damien Lowry. “We’re getting aggressive with exploration; we look to be the next NSR.
company to resource in 4Q; and we’re dealing with an exploding sector. I don’t think
many people realize how many mines have to come on board to satisfy the demand for Saskatchewan, Lowry points out, is an excellent mining jurisdiction, ranking third in the
large-flake graphite.” Fraser Institute’s 2010-2011 Survey of Mining Companies around the world. Despite their
location in the province’s northeast, both properties have roads and the ability to access
power.
And this just in—with ink barely dry on the paper, Strike has picked up a 100% option on
the 3,000-hectare Wagon Property. Under this agreement, Zimtu and three prospecting
partners get $50,000, 1.5 million common shares and a 2% NSR, with Strike spending
$100,000 on exploration.
Part of Wagon’s attraction is proximity to Timcal Graphite & Carbon’s Lac-des-Iles Mine,
15 kilometres away. The larger of Canada’s two graphite producers, it’s been in operation
for over 20 years, producing graphite for a wide variety of applications, including lithium-
ion batteries and fuel cells.
“Wagon looks like the same geology: biotite gneiss,” says Lowry. “And when you have
a mine nearby, you have infrastructure. We’re on a road; we’re close to rail; we’re 150
kilometres from Montreal; and the government will return 50% of our money when we’re
exploring in Quebec.” This province ranks fourth, just after Saskatchewan, in the Fraser
Institute survey.
Lithium-ion batteries, fast becoming the standard for digital devices as well as the rapidly Historic outcrop samples from Wagon have returned non-43-101 results ranging from
expanding electric-vehicle sector, depend on large-flake, high-purity graphite. So do fuel 0.57% to 18.13% graphitic carbon. “The guys are looking at the historic data now,” Lowry
cells, solar panels and next-generation pebble-bed nuclear reactors. News from the R&D says. “We could be drilling it first thing in the spring or later on, but we’re on it. We just
front suggests that graphene, an extraordinarily light graphite derivative that’s 200 times have to go back in there and verify the work.”
stronger than steel, offers a whole new world of technological potential.
Strike’s other option agreement concerns gold. The company may earn up to a 75% inter-
But while China produces about 80% of the world’s graphite, mostly for domestic indus- est in the 1,600-hectare Satterly Lake Property about 10 kilometres from Gold Canyon
trial use, it’s the lower-grade, finer-flake graphite unsuited for the emerging market. “In Resources’ TSXV:GCU Springpole Project in northwest Ontario.
North America, we’re not shy on high-purity, large-flake graphite and a company like ours
with first-mover advantage can do extremely well,” says Lowry. “Our geology is very similar,” points out Lowry. “We have an historic hole of 117 metres
of 1.36 grams per tonne. We’ll twin that hole, drill about eight more holes, then spin it out.
With that in mind, Strike has just completed a helicopter EM survey of Deep Bay East It’s going to be a bonus share to our faithful, and we’ll have both a gold company and a
and Simon Lake, both of which were previously explored by other companies. “We want graphite company.”
to make sure the conductors overlay the historic drilling on both projects,” Lowry says.
“We’re going to twin some of the historic holes, and then we’re going to test the conduc- Having closed a $1.29-million private placement February 9, the company is well-funded,
tors for the highest-grade, largest-flake and most metallurgically plausible areas to prove Lowry adds. “Quietly, $90 million has been raised in North America for graphite projects,
up our deposit. During the spring, we’ll drill at least eight holes on each project, and then and I think that number will increase. There are a thousand gold companies and eight
I think during the summer and fall we’ll continue along those conductors. So far, even graphite companies, and we think we’re the third or fourth company in. Furthermore, our
prior to the EM survey, we’ve got two kilometres of strike on Deep Bay East and five to six company’s liquid. We’re trading about half a million shares a day. The stock chart looks
kilometres of strike on Simon Lake. So we think we can get to resource by 4Q 2012.” excellent and, judging by the bellwether, Northern Graphite TSXV:NGC, it looks like it’s
going to go nowhere but higher.”
He adds, “Graphite takes a limited amount of capital to get a resource together.”
“
At press time, Strike had 36.2 million shares trading at $0.30 a share for a market cap of
The 5,500-hectare Deep Bay East has historic, non-43-101 drill results including $10.9 million.
8.58% carbon over 35.1 metres
8.97% over 13.1 metres
9.06% over 10.7 metres Quietly, $90 million has been raised in North America for
graphite projects, and I think that number will increase. There
The property also has non-compliant trench results of are a thousand gold companies and eight graphite compa-
17.34% over 9.5 metres nies, and we think we’re the third or fourth company in
27.52% over 3.4 metres
8.75% over 3.1 metres – Damien Lowry
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