First 2,600 Tonnes Extracted at Aukam Graphite Mine in Namibia

Rhea-AI Summary

Gratomic Inc. (OTCQX: CBULF) has provided an update on its mining program at the Aukam Graphite Project in Namibia. The company has transferred approximately 2,600 tonnes of graphite to its ROM pad, with operations progressing as planned. The benching process ensures minimal mineral loss and safety, with no reported incidents. However, Gratomic emphasizes the absence of any feasibility studies to demonstrate economic viability, presenting significant risks associated with production uncertainties. The company aims to complete a feasibility study to scale up operations.

Positive

• 1,000 tonnes of graphite transferred to ROM pad, improving operational efficiency.
• Safety protocols in place resulted in no incidents during mining operations.
• Progress in bench-mining allows for consistent feed and improved tailings management.

Negative

• No mineral resources or reserves demonstrating economic viability have been established.
• Increased uncertainty regarding mineral recovery and production costs due to lack of feasibility studies.
• Risk of economic and technical failure is notably high, affecting future production potential.

TORONTO, ON / ACCESSWIRE / October 12, 2022 / Gratomic Inc. ("Gratomic", "GRAT," or the "Company") (TSXV:GRAT) (OTCQX:CBULF) (FSE:CB82) provides its fifth progress update on the bench-mining program at its Aukam Graphite Project in Namibia, further to the press release dated September 21, 2022. 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.

As the benching advances, wider benches are scheduled to improve liberation of graphite at Aukam. This will aid unnecessary mineral loses during the bench-mining operations. Approximately 1,000 tonnes of graphite have been transferred from the mountain to the ROM (Run of Mine) pad in preparation for processing. Another 1,600 tonnes of mineral have been extracted bringing the cumulative total to 2,600 tonnes. The ROM stockpile has been separated by estimated grade, ensuring constant feed into the plant, securing more consistent recoveries and improved tailings management. Bench-mining is progressing as planned. The safety of the benching operation is a major priority, with no incidents having been recorded during the process. Operator training is also a high priority to ensure the health and safety of machine operators, due to the benching process in the mountain area.

Arno Brand, President & CEO, states, "One of the main foundational pillars at Gratomic is to build a sustainable operation in an environmentally friendly, people-centric manner, so that we can leave a lasting legacy for future generations."

"Our mining team understands the importance of ensuring safety as a fundamental value at Gratomic. At the same time, they are always looking for ways to improve productivity and yield the results that we need", 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.

View source version on accesswire.com:
https://www.accesswire.com/720009/First-2600-Tonnes-Extracted-at-Aukam-Graphite-Mine-in-Namibia

FAQ

What recent update did Gratomic Inc. provide regarding the Aukam Graphite Project?

Gratomic reported the extraction of approximately 2,600 tonnes of graphite and noted that bench-mining operations are proceeding as planned.

What is the current status of the feasibility study for the Aukam Project?

Gratomic has not completed a feasibility study, which raises concerns about the economic viability and technical feasibility of production.

What are the risks associated with Gratomic's graphite production plans?

The company faces significant risks including uncertainty in achieving production levels and potential economic and technical failures.

How many tonnes of graphite has Gratomic extracted from the Aukam Project?

Gratomic has extracted a total of approximately 2,600 tonnes of graphite from the Aukam Project.

What safety measures has Gratomic implemented during the mining process?

Gratomic has prioritized safety in its bench-mining operations, with no incidents reported during the process.