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SRG Graphite Inc. developing one of the best graphite deposits in the world

One of the largest surface outlines in the world; 3.22km2 of surface graphite mineralization, 89% large - super jumbo flakes, no impurities.

SRG Graphite Inc. (TSX:SRG)

The share price of SRG.V is poised for upward revaluation to match comparable world class deposits as it advances, fully capitalized, toward Feasibility/production decision in mid-2018.”
— James O'Rourke, Mining MarketWatch Journal

NEW YORK, NY, UNITED STATES, October 4, 2017 /EINPresswire.com/ -- SRG Graphite Inc. (TSX-V: SRG) is the subject of a Mining MarketWatch Journal review. SRG Graphite Inc. is a Canadian-based mining company focused on advancing its 100%-owned Lola Graphite Deposit in Guinea toward a Pre Feasibility Study by the end of this 2017, and Feasibility/production decision in mid-2018. If everything goes to plan the marketplace should be able to recognize a substantially higher value for the asset, one of the best graphite assets in the world due to its size (8.7 km long with average depth of 370m at surface), the quality of the mineral (89% of graphite flakes are super-jumbo, jumbo, and large, with weathering of the top ~20 m allowing for freeing of flakes, grades up to 20% carbon with no impurities), the stability and friendliness of the jurisdiction, geographically it is on the west side of Africa with direct access to North America and Europe, and with a very strong management team (including the founder of SEMAFO) at the helm able to fast-track the project thru to production decision. A decision that will see SRG selling some of the highest quality graphite available, with an optimal distribution of flakes, in an expanding market.

Full copy of the Mining Journal Review may be viewed at http://miningmarketwatch.net/srg.htm online. SRG is at a key stage of value creation and on sale; SRG compared to other projects is still very cheap at its current market cap (see article for comparison of projects).

SRG.V currently has a market cap of ~C$49.3 million (~58 million shares outstanding trading at ~85 cents, with no warrant pressure over its head (~$65M fully diluted)), miniscule compared to other companies with meaningful graphite deposits in the world (see comparison further below) which SRG has advantages over in terms of quality. The share price is apt to appreciate as the Company accomplishes near-term milestones.

Interesting for shareholders is that 1) there is no geological risk; the discovery is made. 2) There is no metallurgical risk; the met tests are done and highly favorable. 3) Investors can also can also tick off the mining risk, as it is at surface (not an underground mine). 4) There is no environmental risk; there are no people to move from the deposit and the local village is supportive, and whatever waste SRG is going to put back into the ground after processing is harmless as there is no deleterious chemical elements used in floatation. 5) Execution risk is addressed as SRG has highly experienced mining professionals (e.g. Marc-Antoine Audet, BSc, MSc and Ph.D (Geology), P.Geo, and Benoit La Salle, FCPA, FCA, MBA) that have done this for the past 30 years with no flaws or failures to speak of. Essentially success for SRG from here boils down to execution on the pre-feasibility and feasibility.

Synopsis of a world-class graphite deposit: The Lola Graphite occurrence has a prospective surface outline of 3.22 km2 of continuous graphitic gneiss, one of the largest surface outlines in the world. The Lola Graphite deposit is 8.7 km long with an avg. width of 370 meters. This Mining Journal projects* (*non 43-101) there is upwards of 150 years of production in the top 20 meters of weathered material alone (calculated using 3.2 sq. km, density of 1.6, 60% of the surface area going through a plant at ~400,000 t/year, yielding 24,000t of concentrate per year), and then there is the rock under that 20 m which is rich too.

Obviously it makes no sense to drill the entire deposit now. The first-pass resource, for the scoping study that SRG is looking to deliver by the end of 2017, will come from its focused drilling of the indicated red ellipse area (seen in the article) covering 16% of the deposit, and this Mining Journal believes* this first-pass will give SRG 15 - 20 years (at a removal rate of ~25,000t of concentrate/yr.) of first production.

Weathering advantage of top ~20 m: The first 20 meters or so of the deposit are well weathered (lateralized), freeing graphite flakes from the silicate gangue and allowing for an easy grinding with optimal recovery of all large and jumbo flakes. The weathering action from the sun and rain has occurred over millions of years, rotting the rock and causing the mobile elements to escape the rock, leaving behind immobile elements in the soil without organic material. Weathering makes the material amenable to easy low-cost removal as it is very easy to dig (e.g. with a backhoe), explosives are not needed. The weathered profile of the deposit is anywhere from 20 m to 30 m and in some places down to 50 m. The weathered material makes for easier processing too, it requires only gentle crushing to recover all the flakes. The majority of other deposits, around the world, and especially those in North America, are in hard rock structures, making them much harder to mine and much more difficult from a metallurgical standpoint. The Lola Graphite Deposit, within the top 20 m - 30 m, is like a sandbox with the graphite flakes freed from weathering, making them easy to recover.

Flake size advantage; 89% of graphite flakes are super-jumbo, jumbo, and large (>0.18 mm): The flake distribution found in graphite at the Lola Graphite Deposit is a unique occurrence, very few deposits in the world can compare. Being dominant large - super-jumbo flakes will allow SRG to market its deposit to all sectors of the economy and cater to the whole range of industries.

Full copy of the Mining Journal Review may be viewed at http://miningmarketwatch.net/srg.htm online.

Content found herein is for information purposes only and are not solicitations to buy or sell any of the securities mentioned.

James O'Rourke
Mining MarketWatch Journal
8666209945
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SRG Graphite Inc. opens TSX-V market for 1st trading day in October-2017