Bench-mining Program Enters Full Mining Phase After Completion of Road Construction at Aukam
Gratomic Inc. (OTCQX: CBULF) announces that its bench-mining program at the Aukam Graphite Mine in Namibia has reached full capacity following the completion of road construction. The new access road enhances exploration and mining operations, providing safer and more efficient access to graphite. Although progress is notable, Gratomic highlights the lack of completed economic studies or mineral resource delineation, stressing the risks associated with production initiation and cost recovery. The company is advancing a feasibility study for its processing plant while aiming to secure a competitive position in the graphite market.
- Completion of road construction enhances exploration and mining efficiency.
- Bench-mining program has reached full operational capacity.
- Company aims to position itself as a leading global graphite supplier.
- No economic feasibility studies completed for the Aukam project.
- Increased uncertainty regarding production initiation and cost recovery.
- Failure to commence production could severely impact revenue generation.
TORONTO, ON / ACCESSWIRE / October 12, 2022 / Gratomic Inc. ("Gratomic", "GRAT," or the "Company") (TSXV:GRAT) (OTCQX:CBULF) (FSE:CB82) is pleased to announce that the recent bench-mining program at its Aukam Graphite Mine in Namibia is entering full capacity as road construction on the mountain has been successfully completed. The benching process typically involves successively cutting berms alongside the mountain edge in order to steadily expose underground material, at the same time ensuring the stability of the mountain structure. This process allows for the collection of graphite in stages as the platforms are constructed on the Aukam mountain.
The road construction that includes the ring road connection was completed this week. The road will allow access to three potential platforms that will enhance the exploration program and the bench mining operations. The upper bench for mining operations for graphite extraction is already operational.
The access road is necessary for the exploration and mining teams to access the mineral housed within the Aukam mountain in a safe, efficient, and effective manner. Road construction and early bench-mining were underway simultaneously, however, at lesser amounts of mineral extraction. Completion of the access road paves the way for the exploration and drilling teams to strategically locate and liberate graphite in unison and provides much needed data for the completion of technical reports on the Aukam Graphite Project.
Arno Brand, President & CEO, states, "Achieving this goal is extremely satisfying as this is what we, at Gratomic, have collectively been working towards. The excitement over this milestone is tangible and we are very proud of our team at Aukam and grateful for the continued support of our valued shareholders."
"The corporate culture at Gratomic is unique; we work together to overcome obstacles and celebrate together when milestones are achieved. Our mining team has once again gone above and beyond what we expected. These are inspiring individuals and an inspiring team", says Armando Farhate, COO & Head of Graphite Marketing & Sales.
Gratomic wishes to emphasize that no Preliminary Economic Analysis, Preliminary Feasibility Study or Feasibility Study has been completed to support any level of production. In fact, no mineral resources let alone mineral reserves demonstrating economic viability and technical feasibility, have been delineated on the Aukam property.
The Company is working towards completing a Feasibility Study (FS) on the Aukam Processing plant. The study, its recommendations, and their subsequent implementation, will provide conclusions and recommendation at a FS level of comfort relating to the scale up of the existing processing plant to a commercial scale processing facility capable of producing the desired concentrate grades and production rates.
Gratomic wishes to emphasize that the supply of graphite is conditional on Gratomic being able to bring the Aukam project into a production phase, and for any graphite being produced to meet certain technical and mineralization requirements.
Risk Factors
No mineral resources, let alone mineral reserves demonstrating economic viability and technical feasibility, have been delineated on the Aukam Property. The Company is not in a position to demonstrate or disclose any capital and/or operating costs that may be associated with the processing plant until the FS (Feasibility Study) is completed.
The Company advises that it has not based its production decision on even the existence of mineral resources let alone on a Preliminary Feasibility Study or FS of mineral reserves, demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit.
Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will begin as anticipated or at all or that anticipated production costs will be achieved.
Failure to commence production would have a material adverse impact on the Company's ability to generate revenue and cash flow to fund operations. Failure to achieve the anticipated production costs would have a material adverse impact on the Company's cash flow and future profitability.
About Gratomic
Gratomic is a multinational company with projects in Namibia, Brazil, and Canada. The Company is focused on becoming a leading global graphite supplier and aims to secure a strong position in the EV battery supply chain. With the continued development of its flagship Aukam project and further exploration on the Company's Capim Grosso property, Gratomic sets itself apart by seeking out unique top-quality assets around the world. True to its roots, the Company will continue to explore graphite opportunities displaying potential for development. The Company ranked third place in the top 10 preforming mining stocks on the 2022 TSX Venture 50™.
Large quantities of high-quality vein graphite have been shipped for testing to confirm its viability as an anode material. Gratomic is confident that the test results will provide a unique competitive advantage in its desired target markets. The Company will continue to update the public on the status of these tests and will provide results as soon as they become available.
The Company has formed a collaboration agreement with Forge Nano. With its patented ALD coating, this cooperation with Forge Nano is a key element to support Gratomic's strategies towards the value-added phases of production of graphite for anode applications, namely micronization, spheronization and coating, making Gratomic graphite a preferred choice for use in lithium-ion batteries.
For more information: visit the website at www.gratomic.ca or contact:
Arno Brand at abrand@gratomic.ca or (416) 561- 4095
Subscribe at gratomic.ca/contact/ to be added to our email list.
For Marketing and Media information, please email: info@gratomic.ca
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
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)
SOURCE: Gratomic Inc.
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