Focus Metals plans to begin production of high-purity flake graphite from its Lac Knife project in Quebec by the end of 2013. The project has measured, indicated, and inferred resources totaling over 10 million tonnes of graphite grading over 15% carbon. Focus also holds a 40% stake in graphene producer Grafoid, and sees potential applications of graphene in areas like construction materials, medicine, and recycled plastics. The company's low projected production costs and offtake agreements mean it can begin production without a full feasibility study.

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Levon Publishes a Mexico Silver-Gold-Base Metals Project PEA
~ By Greg Klein- February 22 2012
“This is the highest-grade graphite deposit in the world.” On that resounding note, Advisor Gordon Chiu. Grafoid’s R&D takes place in four labs around the world. The
Focus Metals TSXV:FMS President/CEO Gary Economo introduces his Quebec Lac locations are secret.
Knife flake graphite project, which is fast-tracked for 2013 production.
“We’ve developed a process to manufacture graphene without oxidizing the material
At the same time, Focus is intensely involved in developing graphene, the graphite and to do so economically,” he reports. “Most, if not all, current techniques oxidize
derivative Economo claims “will change the way we live, work and communicate.” the material, which diminishes graphene’s electrical capabilities. The techniques are
Lauded as the “new silicone,” graphene is thin enough to see through, flexible, fold- often extremely expensive, to the point where graphene can’t be used in day-to-day
able, highly conductive and 200 times stronger than steel. applications. Our technology is an extremely safe, environmentally-friendly and very
low-cost process.
“There are many, many uses for our form of graphene. We’ve teamed up with
Rutgers University, which is the world authority on recycled plastics, to impregnate
their plastics with our graphene. One of the major uses of this material would be
infrastructure. For example, you can wrap this material around concrete pillars for
extra strength and support. You can create rebar that’s a lot stronger and would
never corrode, which is presently a big problem.”
Grafoid’s initial strategy is to find near-term uses for its graphene. “We’ve been quite
successful in mixing the material with plastic and we’re looking at applications like
these that have more immediate uptake. I think we could see the product being used
within a year’s time.
“We’re also getting requests from companies to work with them in medical applica-
tions,” he adds. Here, the possibilities evoke a sense of wonder. “Bacteria cannot
Graphene evangelists say the material will bring new technological marvels, grow on graphene,” Economo notes. “But human cells can. Graphene has the ability
fomenting even greater demand for graphite, the market for which is soaring. While to nurture and grow human cells. There’s major work being done in that sector right
traditional industrial demand escalates, new uses call for even greater supplies of now.”
high-purity flake graphite for lithium-ion batteries, solar panels, fuel cells, pebble
bed nuclear reactors and other emerging technologies. Of course all that visionary stuff relies on finding and mining minerals. “We have
about 265 new claims that we’ve taken on in the last few months, and we’re looking
According to last December’s 43-101 mineral resource estimate, Lac Knife contains at others,” Economo says. “We’re picking out the highest grades and the locations
(with no cutoff) 637,250 tonnes grading 15.59% carbon measured, 4.33 million best suited for infrastructure and logistics, good potential targets for the next five to
tonnes grading 15.68% C indicated and 3 million tonnes grading 15.58% C inferred. 10 years.”
With a 5% cutoff, the numbers are 604,735 tonnes grading 16.25% C measured, All the newly acquired claims lie in the mining-friendly province of Quebec. Some
4.33 million tonnes grading 15.69% C indicated and 3 million tonnes grading surround Timcal Graphite & Carbon’s Lac-des-Iles Mine, largest of Canada’s two
15.58% C inferred. graphite producers. The company also holds a 50% earn-in agreement with the
Quebec government on the early-stage Kwyjibo REE-Copper Project. “But our focus
With a 10% cutoff, the numbers are 504,669 tonnes grading 17.95% C measured, is getting Lac Knife into production,” Economo emphasizes.
4.03 million tonnes grading 16.24% C indicated and 2.86 million tonnes grading
15.92% C inferred. Focus will make a presentation at Vancouver’s free-registration Graphite Express-
Conference February 23. “Very little is known in the investment community about
These estimates are based on 8,611 metres from 105 holes. All zones are open in how people can make money on graphite,” Economo says. “This is an extraordinary
all directions. material, and we’re not even talking about graphene. Of course, we all know about
the lithium battery story, but there’ll be other uses just as big, if not bigger.”
Focus plans to issue a preliminary economic assessment by April, Economo
says. Then it’s straight to construction and open-pit production. “We won’t need a He concludes, “The viability of any project always comes down to the cost to
feasibility study because we’ll have offtake agreements, and we have our financing produce. The grade that we have will make us the lowest-cost producer in the world.
already pretty well defined. Within the next six months, we should be well on our way We’ll be able to compete against anyone and everyone.”
through the permitting process. The plant is currently being designed, as well as the
“
mine plan. By the end of next year, we should be in production. Initially, we should At press time, Focus Metals had 84.6 million shares trading at $1.03 a share for a
produce 20,000 tonnes at 98% and then another 3,000 to 5,000 tonnes at 99.99%.” market cap of $87.1 million.
Located in the Labrador Trough iron ore region, Lac Knife has nearby access to
road, rail and cheap power. Focus plans to contract the mining to another company. We won’t need a feasibility study because we’ll
“We’re talking to a couple of major mining companies that would provide the actual
mining services. Focus will still be in charge,” Economo says.
have off-take agreements and we have our
financing already pretty well defined
Meanwhile, Focus holds a 40% interest in Grafoid Inc, a joint venture created last
year to find proprietary methods of manufacturing graphene. The other 60% is held
by Economo and two other Focus colleagues, Chairman/Director Jeffrey York and
– Gary Economo
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