Gratomic Announces Commissioning of Aukam Processing Plant
Gratomic Inc. has initiated the commissioning phase of its processing plant in Aukam, Namibia. Currently engaged in the Direction Testing (C2 phase), the company aims to systematically progress through the commissioning stages. Notably, no Preliminary Economic Analysis or feasibility studies have been conducted to support production viability, leading to potential economic uncertainties. Gratomic has appointed Dr. Ian Flint for a preliminary economic assessment to evaluate scaling the processing plant. The company emphasizes that graphite supply depends on successful project development and production commencement.
- Initiation of the commissioning phase of the Aukam processing plant.
- Appointment of Dr. Ian Flint for a preliminary economic assessment.
- Plans to fulfill existing off-take purchase agreements for graphite.
- No Preliminary Economic Analysis or feasibility studies completed.
- Increased uncertainty regarding mineral recovery and production costs.
- Risk of economic failure given the lack of demonstrated mineral resources.
TORONTO, ON / ACCESSWIRE / March 29, 2021 / Gratomic Inc. ("GRAT" or "The Company") (TSXV:GRAT)(OTCQX:CBULF)(Frankfurt:CB82) announces that it has officially started the commissioning phase of its processing plant in Aukam, Namibia. Commissioning will begin with the crushing circuit and progress throughout the other areas of the plant systematically in order of progression.
Commissioning of a mining processing plant is usually divided into 6 progressive stages:
C0 - Constructed to Design including Factory Acceptance
C1 - Pre-commissioning
C2 - Direction Testing
C3 - No Load / Dry Commissioning
C4 - Load / Wet Commissioning
C5 - Project Completion
Gratomic is currently entering into Direction Testing (C2 phase) of the equipment composing the crushing circuit of the plant. This stage consists of energizing the equipment and ensuring it rotates in the right direction, stroking the control systems, calibrating instruments and verifying protections.
Once obtaining the expected results on stage C2, our team will progressively advance to stages C3 to C5 of the commissioning process, aiming to ensure that, at the end, the entire plant will perform according to project parameters in a sustainable matter.
"It is essential that we proceed with the necessary steps of commissioning, according to engineering good practices, before the plant becomes operational, and our team in Aukam has been employing all available resources in order to complete this crucial milestone", says Armando Farhate COO & Head of Graphite Marketing and Sales.
"On the 2nd of March, we went silent as an exploration company. We are preparing to go live with a mining company. Nothing evokes a more powerful emotional response than one of revival after a down spell and as a CEO I couldn't be prouder to be entering this important commissioning phase", says CEO & President Arno Brand.
Gratomic wishes to emphasize that no Preliminary Economic Analysis ("PEA"), 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 appointed Dr. Ian Flint to complete a preliminary economic assessment (PEA) on the Aukam Processing plant. The study, its recommendations, and their subsequent implementation, will provide conclusions and recommendation at a PEA level of comfort relating to the scale up of the existing processing plant to a commercial scale processing facility that will provide the desired concentrate grades and production rates. A preliminary economic assessment is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.
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. Gratomic continues to move its business towards production and as part of its business plan, expects to obtain a National Instrument 43-101 Standards of Disclosure for Mineral Projects technical report to help it ascertain the economics of the Aukam project.
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.
The Company advises that it has not based its production decision on even the existence of mineral resources let alone on a feasibility study 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.
Steve Gray, P. Geo. and a Director of the Company has reviewed and approved the scientific and technical information in this press release and is the Company's "Qualified Person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
About Gratomic Inc.
Established in 2014, Gratomic is focused on the proposed production of low-cost mine to market carbon-neutral, eco-friendly, high purity vein graphite to be provided to the EV and Energy Storage supply chains. Gratomic is anticipating full operational capabilities in 2021.
Gratomic is in the process of solidifying its plans for micronization and spheronization of its clean Aukam graphite. This significant milestone is a small, additional step in the Company's proposed eco-friendly processing cycle and is intended to allow it to meet ideal North American battery grade standards for use in Li-ion battery anodes.
The Company plans to deliver mine-to-market traceability and guaranteed quality control. This will be accomplished by providing documented tracking on all graphite generated at its flagship Aukam Graphite Project. The tracking will begin at Aukam and will be verified at every stage during transport.
Two off-take purchase agreements are currently held for lump-vein graphite sourced from Gratomic's Aukam Graphite Project in Namibia, Africa. Fulfillment of the contracts is anticipated to begin in Q1 of 2021. The agreements exist with TODAQ and Phu Sumika.
TODAQ is an innovative deeptech company that can containerize assets, transactions & markets, and will partner with Gratomic on its mine-to-market commodity tracking and trading. Containerized assets are verifiably unique, keep an immutable record of who has owned them, have embedded smart logic, can be transferred P2P, and are interoperable with any system. Asset owners enjoy stronger ownership control, value retention when trading, and ability to prove authenticity in seconds.
Phu Sumika is a large global graphite supplier to battery and lubrication companies.
Gratomic Inc. is listed on the TSX Venture Exchange under the symbol GRAT, on the OTCQX under the symbol CBULF and on the Frankfurt Exchange under the symbol CB82.
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.
"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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