Gratomic Announces Product in Bag (PIB) From its Aukam Project in Namibia
Gratomic has successfully produced its first batch of processed graphite from the Aukam plant in Namibia, marking a significant milestone since 1974. The company achieved a PRODUCT IN BAG (PIB) milestone with one metric ton of material, intended for product development. The produced graphite is suitable for various applications, including anode material for lithium-ion batteries. However, Gratomic indicates that no economic feasibility studies have been completed, raising risks regarding production and cost recovery.
- First successful production of processed graphite since 1974.
- Achieved milestone of one metric ton of material produced.
- Material is suitable for diverse applications, including lithium-ion batteries.
- No preliminary economic analysis or feasibility study completed, raising uncertainty about production viability.
- Increased risks associated with developing a commercially mineable deposit.
TORONTO, ON / ACCESSWIRE / April 21, 2022 / Gratomic Inc. ("Gratomic", "GRAT," or the "Company") (TSXV:GRAT)(OTCQX:CBULF)(FSE:CB82) announces the production of the first batch of processed graphite from its Aukam plant in Namibia, as part of the wet commissioning process and operational readiness that the facility is currently undergoing. Today we celebrate the first product produced at the Aukam site since 1974.
Gratomic has achieved its first PRODUCT IN BAG (PIB) milestone by generating one metric ton of material that was produced and transferred to inventory. This material will be sent to SGS Lakefield for product development in the fulfillment of the Company's obligation to modify the product to suit the needs of the end users. This is an important step that is required in the product development process, on which the Company's product line is based. The product lineup will include SG16, which is targeted for anode material development and spheronization, M97, which is highly refined but not spheronized, and C99 and +895, which are less targeted for specific applications.
The grade that was produced would be suitable for applications in the markets of refractories, powder metallurgy, lubricants and friction elements, and with additional micronizing and spheronizing the material will be able to be used as an anode material in li-ion batteries. As the plant moves towards the end of operational readiness, more types of products of different specifications will be generated including higher value-added applications such as battery anode, until the plant becomes fully operational. Samples will be sent for independent laboratories to confirm the product grade obtained onsite at Aukam.
The finished product was produced from historical stockpiles at the site, and during the execution, all components of the processing plant were set to work, confirming the concepts idealized by the Company's Engineering team and the functionality of the different types of equipment. Gratomic will continue to optimize the processing plant through the operational readiness stage and into the full production phase.
Illustrated below: onsite microscopic photographs showing the final concentrate sampled from the product in bag.
Further illustrated: photograph of Graphitic material flowing out of the launder from the Company's self-designed flotation columns during processing.
Below: Aukam team posing with first official product in bag.
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. Gratomic continues to move its business towards production and as part of its business plan, expects to file a National Instrument 43-101 Standards of Disclosure for Mineral Projects resource estimate in Q3 2022.
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 PFS is completed.
The Company advises that it has not based its production decision on even the existence of mineral resources let alone on a PFS or 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.
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 (Electric Vehicle) 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 (Atomic Layer Deposition) 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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