Alaska graphite deposit
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Jim_Alaska
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Geowizard
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Re: Alaska graphite deposit
Jim,
Having followed Graphite One for quite a while. I would offer a few points for consideration.
Yes, we need graphite for many different things from batteries for Electric Cars to moderators in Nuclear power plants.
Competition;
Canada exports Graphite to the U.S. Graphite One has to compete with a producing mine that is closer to the marketplace and has working relationships (tenure) with customers in the Graphite supply chain.
https://natural-resources.canada.ca/our ... acts/24027
The details;
Graphite One published their NI 43-101 report in 2019. It is a good reference on the technical details. The mine history is at page 20 of the report.
https://minedocs.com/21/Graphit_one_Min ... e_2019.pdf
Investors;
From an investment point of view - it is a SELL.
https://www.macroaxis.com/performance/G ... aphite-One
Geometry;
As I see it, the mining issues are related to the deposit geometry. The deposit is 600 feet wide and 3 miles long. This mine probably won't be an open pit or quarry mine. It will most likely be an underground mine.
The pitch;
IMHO, reading and listening to the pitch, it's all about limited measured and inferred resources that in the sum total look good on paper. The details of mining, extracting and concentrating low grade graphite from metamorphic limestone (marble) are absent from the discussion.
The margin;
Distance to market becomes the biggest factor. Processing the Graphite into a marketable form and shipping it to market in competition with existing producers cuts deep into an already narrow profit margin.
Buyers;
Buyers want high purity and low price. They want long term assurance of quantity and quality of the Graphite. Long term contracts dictate Life Of Mine (LOM). In this case LOM has only one option - going deeper. Going deeper costs more money, making increasing mining costs inevitable.
Disclaimer;
I ain't buying anything and I ain't selling anything. All external links are the property of their respective owners. No warranty is provided express or implied.
- Geowizard
Having followed Graphite One for quite a while. I would offer a few points for consideration.
Yes, we need graphite for many different things from batteries for Electric Cars to moderators in Nuclear power plants.
Competition;
Canada exports Graphite to the U.S. Graphite One has to compete with a producing mine that is closer to the marketplace and has working relationships (tenure) with customers in the Graphite supply chain.
https://natural-resources.canada.ca/our ... acts/24027
The details;
Graphite One published their NI 43-101 report in 2019. It is a good reference on the technical details. The mine history is at page 20 of the report.
https://minedocs.com/21/Graphit_one_Min ... e_2019.pdf
Investors;
From an investment point of view - it is a SELL.
https://www.macroaxis.com/performance/G ... aphite-One
Geometry;
As I see it, the mining issues are related to the deposit geometry. The deposit is 600 feet wide and 3 miles long. This mine probably won't be an open pit or quarry mine. It will most likely be an underground mine.
The pitch;
IMHO, reading and listening to the pitch, it's all about limited measured and inferred resources that in the sum total look good on paper. The details of mining, extracting and concentrating low grade graphite from metamorphic limestone (marble) are absent from the discussion.
The margin;
Distance to market becomes the biggest factor. Processing the Graphite into a marketable form and shipping it to market in competition with existing producers cuts deep into an already narrow profit margin.
Buyers;
Buyers want high purity and low price. They want long term assurance of quantity and quality of the Graphite. Long term contracts dictate Life Of Mine (LOM). In this case LOM has only one option - going deeper. Going deeper costs more money, making increasing mining costs inevitable.
Disclaimer;
I ain't buying anything and I ain't selling anything. All external links are the property of their respective owners. No warranty is provided express or implied.
- Geowizard
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Geowizard
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Re: Alaska graphite deposit
First hand experience;
In 1990, after having spent five years developing a mine, I decided to negotiate a smelter contract. I wanted to ship ore containing a commodity known as SILVER.
I made contact with the Phelps Dodge buyer. He wanted a 200 pound sample of the ore. The objective was to determine the possible contaminants that would enter the smelter. The buyer isn't concerned about the economics endured by the seller. I negotiated a 200 ton "test" shipment to a smelter 250 miles away in New Mexico. I drove to the smelter and delivered a second 200 pound sample for their scrutiny.
Next, I negotiated with a trucking company to haul the ore. The price was $500 per over the road 20 ton end dump. The drivers loaded and weighed their own trucks. I mined the ore and contracted a second short haul trucking company to haul down the "goat trail" off of the mountain. The ore was dumped and stockpiled at an intermediate millsite claim then reloaded for over the road. The over the road drivers only loaded their trucks to 25,000 pounds. There were 16 trucks involved.
The smelter pays "net 120 days". After waiting 4 months I got a check for $3000.
- Geowizard
In 1990, after having spent five years developing a mine, I decided to negotiate a smelter contract. I wanted to ship ore containing a commodity known as SILVER.
I made contact with the Phelps Dodge buyer. He wanted a 200 pound sample of the ore. The objective was to determine the possible contaminants that would enter the smelter. The buyer isn't concerned about the economics endured by the seller. I negotiated a 200 ton "test" shipment to a smelter 250 miles away in New Mexico. I drove to the smelter and delivered a second 200 pound sample for their scrutiny.
Next, I negotiated with a trucking company to haul the ore. The price was $500 per over the road 20 ton end dump. The drivers loaded and weighed their own trucks. I mined the ore and contracted a second short haul trucking company to haul down the "goat trail" off of the mountain. The ore was dumped and stockpiled at an intermediate millsite claim then reloaded for over the road. The over the road drivers only loaded their trucks to 25,000 pounds. There were 16 trucks involved.
The smelter pays "net 120 days". After waiting 4 months I got a check for $3000.
- Geowizard
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Geowizard
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Re: Alaska graphite deposit
What happened?
My assays on average ran 50 ounces per ton. On 200 tons, that's 10,000 ounces. At the time, Silver was dropping through $5.00 per ounce.
Mining is an imperfect science. The mining extended beyond the 50 opt zone into lower grade ore. It isn't possible to assay ore in real time while mining. Low grade ore got shipped. There was "dilution" of the ore at the mill site. Truckers loaded "dirt" along with ore. The smelter contract included penalties for alumina and assorted other contaminants. They also deduct for moisture in the ore.
Then you have income taxes on the earned income.
- Geowizard
PS: In 1991, Silver was at $4.06 an ounce.
My assays on average ran 50 ounces per ton. On 200 tons, that's 10,000 ounces. At the time, Silver was dropping through $5.00 per ounce.
Mining is an imperfect science. The mining extended beyond the 50 opt zone into lower grade ore. It isn't possible to assay ore in real time while mining. Low grade ore got shipped. There was "dilution" of the ore at the mill site. Truckers loaded "dirt" along with ore. The smelter contract included penalties for alumina and assorted other contaminants. They also deduct for moisture in the ore.
Then you have income taxes on the earned income.
- Geowizard
PS: In 1991, Silver was at $4.06 an ounce.
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Geowizard
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Re: Alaska graphite deposit
Graphite 101;
GOLD miners and prospectors are on top of the GOLD market and the dynamics of GOLD.
A few basics are important to our understanding in order to view the dynamics of graphite on a global scale.
How is graphite priced?
https://www.northerngraphite.com/about- ... e-pricing/
The Graphite Supply Problem:
https://www.northerngraphite.com/about- ... y-problem/
An Infographic:
https://www.northerngraphite.com/_resou ... df?v=0.375
Stick around! There's more!
- Geowizard
GOLD miners and prospectors are on top of the GOLD market and the dynamics of GOLD.
A few basics are important to our understanding in order to view the dynamics of graphite on a global scale.
How is graphite priced?
https://www.northerngraphite.com/about- ... e-pricing/
The Graphite Supply Problem:
https://www.northerngraphite.com/about- ... y-problem/
An Infographic:
https://www.northerngraphite.com/_resou ... df?v=0.375
Stick around! There's more!
- Geowizard
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Geowizard
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Re: Alaska graphite deposit
Heroes and villains;
My equipment operator named "Hoedaddy" managed to sweet talk a local John Deere sales rep into lending a NEW John Deere 310 (turbo) "Demo" backhoe (free) to the operation!
After the drilling and blasting, Hoedaddy loaded 10 yard dump trucks for the down-hill run down the "goat trail" to the millsite claim. The down-hill trucking company was a "landscaping" company out of Glendale. Their highly qualified Spanish speaking drivers looked like they were fresh out of high school.
As I sat on a nearby observation point, I watched the dump trucks laboring to climb the goat trail. As the trucks bogged down on the steep grade, the drivers would inadvertently shift "UP" a gear instead of shifting down! Yep! I couldn't make this stuff up.
Stick around there's more!
- Geowizard
My equipment operator named "Hoedaddy" managed to sweet talk a local John Deere sales rep into lending a NEW John Deere 310 (turbo) "Demo" backhoe (free) to the operation!
After the drilling and blasting, Hoedaddy loaded 10 yard dump trucks for the down-hill run down the "goat trail" to the millsite claim. The down-hill trucking company was a "landscaping" company out of Glendale. Their highly qualified Spanish speaking drivers looked like they were fresh out of high school.
As I sat on a nearby observation point, I watched the dump trucks laboring to climb the goat trail. As the trucks bogged down on the steep grade, the drivers would inadvertently shift "UP" a gear instead of shifting down! Yep! I couldn't make this stuff up.
Stick around there's more!
- Geowizard
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Geowizard
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Re: Alaska graphite deposit
Epilogue;
In conclusion, and please note, this is not intended to hijack Jim's thread on graphite, but only to illustrate the headwinds faced by mining upstarts.
In 2010, as Silver prices were improving, the future for Silver mining began to improve. I was contacted by a Junior Canadian Exploration company. They were conducting an exploration campaign to find a world class Copper-silver deposit similar to the Resolution Copper deposit and wanted to lease my mining claims. We signed a lease-option agreement and I kept a close eye on the core drilling and surface geophysical work through the winter season.
Part of that negotiation included a hand-off of the data to me upon completion should they pull out. Needless to say, they pulled out. There wasn't a world class deposit. There WAS an inferred deposit worthy of further investment by someone with the "means". I published the property online as being available for a lease-option. The property value had been upgraded by "data"!
Within only a few days, the phone rang. It didn't take long to negotiate an outright sale. I helped the new owner through the process of negotiating a contract with Freeport McMoran. Freeport mining reps visited the property. After looking it over, they hesitated a moment and said, they couldn't do a contract on the mine because the haul route went through a "sensitive" populated area. They were concerned about being associated with any operation that would get negative public feedback.
Miners are in a precarious position. We go through the legwork to develop a mining property. We negotiate a gauntlet of obstacles to get our product to market. All of this costs time and money. Eventually, the money or time runs out.
- Geowizard
In conclusion, and please note, this is not intended to hijack Jim's thread on graphite, but only to illustrate the headwinds faced by mining upstarts.
In 2010, as Silver prices were improving, the future for Silver mining began to improve. I was contacted by a Junior Canadian Exploration company. They were conducting an exploration campaign to find a world class Copper-silver deposit similar to the Resolution Copper deposit and wanted to lease my mining claims. We signed a lease-option agreement and I kept a close eye on the core drilling and surface geophysical work through the winter season.
Part of that negotiation included a hand-off of the data to me upon completion should they pull out. Needless to say, they pulled out. There wasn't a world class deposit. There WAS an inferred deposit worthy of further investment by someone with the "means". I published the property online as being available for a lease-option. The property value had been upgraded by "data"!
Within only a few days, the phone rang. It didn't take long to negotiate an outright sale. I helped the new owner through the process of negotiating a contract with Freeport McMoran. Freeport mining reps visited the property. After looking it over, they hesitated a moment and said, they couldn't do a contract on the mine because the haul route went through a "sensitive" populated area. They were concerned about being associated with any operation that would get negative public feedback.
Miners are in a precarious position. We go through the legwork to develop a mining property. We negotiate a gauntlet of obstacles to get our product to market. All of this costs time and money. Eventually, the money or time runs out.
- Geowizard
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Geowizard
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Re: Alaska graphite deposit
Carbon Nano Tubes;
Life can take us in many different directions. I happened on to an auction in Tucson a few years ago. It was at a Materials Engineering Research facility.
The facility was in bankruptcy litigation and the assets were placed at auction. I was like a kid in a candy store! So many different "gadgets". We are talking one-of-a-kind gadgets! This facility was forefront in the development of the original inventions related to Carbon Nano Tubes.
Several of the scientists were in attendance. The inventors of the Carbon Nano Tube Technology. I had the distinct privilege to have conversations with a few of them.
Graphite rods were used in a vacuum chamber with two 7000 amp DC welders connected in parallel. At the end of the day, I have boxes of graphite rods, high end vacuum pumps, SCR triggers, Capacitors and the Vacuum chamber!
Carbon Nano Tubes are woven into fabric. The fabric is light weight and has high strength.
Ed. note: High voltages used.
https://www.youtube.com/watch?v=3hHoL77QDkg
$500 per gram for graphene!
Stick around. There's more!
- Geowizard
Life can take us in many different directions. I happened on to an auction in Tucson a few years ago. It was at a Materials Engineering Research facility.
The facility was in bankruptcy litigation and the assets were placed at auction. I was like a kid in a candy store! So many different "gadgets". We are talking one-of-a-kind gadgets! This facility was forefront in the development of the original inventions related to Carbon Nano Tubes.
Several of the scientists were in attendance. The inventors of the Carbon Nano Tube Technology. I had the distinct privilege to have conversations with a few of them.
Graphite rods were used in a vacuum chamber with two 7000 amp DC welders connected in parallel. At the end of the day, I have boxes of graphite rods, high end vacuum pumps, SCR triggers, Capacitors and the Vacuum chamber!
Carbon Nano Tubes are woven into fabric. The fabric is light weight and has high strength.
Ed. note: High voltages used.
https://www.youtube.com/watch?v=3hHoL77QDkg
$500 per gram for graphene!
Stick around. There's more!
- Geowizard