Canadian Industrial Minerals — A Special Report from Energy, (September 28, 1992)

In 1991 Canada’s only commercial production of graphite came from Stratmin Inc. with a mine and concentrator at Lac-des-Iles, Quebec, and a concentrator at Notre-Dame-du-Laus, also in Quebec. The year was marked by a decline in exploration and development activity in both Ontario and Quebec. The only company involved in major exploration work was Mart Mining & Exploration Ltd of Labrador City, Labrador.

Newfoundland — Mart Mining completed a 600m diamond drilling program in 1991 on its graphite deposit, which is located 14 km south of Labrador City. The host rock is a micaceous quartz feldspar graphite schist with inclusions of garnet crystals and sulphides, dipping at 40 east, and striking 20 northeast. Five holes with a maximum hole depth of 154m were drilled at an angle of 50, along a 600m strike distance. The property’s reserves are estimated at 6.0 million tonnes (Mt) grading 17.3 percent in graphitic carbon. The company plans to continue with a diamond drilling program in 1992.

Quebec — In 1991, Stratmin Graphite Inc. completed the tune-up of its new mill at Lac-des-Iles, bringing it to its designed capacity of 950t/d ore, or about 20 000 t/y graphite concentrates. With the leased mill at Notre-Dame-du-Laus that has a rated capacity of 400t/d ore, the combined capacity of Stratmin is 28 000t/y of graphite concentrates. Stratmin is currently exporting its graphite concentrates to fourteen countries in North America, South America, Europe, the Far East and Asia. Due to depressed market conditions in 1991, the Notre-Dame-du-Laus mill was temporarily shut down in January 1991. From April to December 1991, the Lac-des-Iles mill was operated on a reduced schedule of 4 days per week. Full production resumed early in 1992. Total concentrates production by Stratmin was estimated at 10 323t in 1991.

Mazarin of Quebec City is seeking financing to develop its Fermont, Quebec flake graphite deposit. A feasibility study on the viability of this deposit was prepared a couple years ago; the study proposed an open-pit mining operation for six months of the year, which would supply enough ore to feed a 400t/d concentrator on a year-round basis for an annual production of 23 000 t of concentrates. A second feasibility study was prepared in early 1991 by Cambior Inc., which is a prospective partner in Mazarin. The total capital cost of the project estimated by Cambior is $30.6 million. Geological reserves are estimated at 8.1 Mt, averaging 16.7 percent carbon. The 20-year mining reserves were reported at 2.5 Mt grading 17.4 percent carbon after dilution; these are mineable by open pit with a waste/ore ratio of 1.0/1.0. The graphite ore would be suitable for all major applications without chemical upgrading. The project is reportedly ready for construction, and according to the company, could be in production within 13 months. In 1991, Graphicor Resources Inc. added primary milling capacity to their concentrator at Lac-des-Iles, Quebec. The facility was started in May 1991 and operated in various trial configurations, designed to optimize both grade and recovery of flake graphite; however, mill results did not meet expectations, and mining problems at the Diotte mine also developed. Consequently, mining operations were terminated in November with test milling of stockpiled ore continuing until closure in mid-December. The company is also pursuing acquisition of the mining and environmental permits required to develop ore reserves at a deposit near Lac Carmin, which is held in partnership with SOQUEM, and at Mousseau in the municipality of Ste. Veronique. Results of bulk tests to be performed on the ores from these two locations will be used to determine the cost of any further concentrator retrofit deemed necessary to ensure consistent production at design specifications. Given reduced demand and sharply reduced prices for graphite, Graphicor will subject any decision to resume full operation to a complete review of all economic factors.

Ontario

Cal Graphite Corporation of Lively, Ontario, holds a 100 percent interest in mining claims in the Township of Butt near Huntsville where crystalline flake graphite occurs in mafic gneiss and paragneiss. An open-pit mine and a processing plant with an initial milling capacity of 3 000 t/d ore, which could be expanded to 5 000 t/d ore, is currently producing graphite concentrates grading more than 94% carbon graphite. Higher grade concentrates for specialty applications will be produced in 1993 from the company’s refining facility at Huntsville.

No new developments were reported in 1991 by Stewart Lake Resources Inc. of Oakville, Ontario. The feasibility study on its Kirkham, Ontario flake graphite project was completed in 1990 and concluded that the project can be successfully developed and placed into production at an estimated cost of $9.8 million. Graphite ore would be mined by open-cast method at the beginning, moving eventually to an underground operation. Approximately 8 000 t/y of graphite concentrate would be produced annually.

Victoria Graphite Inc. is seeking financing to start production on its 400-hectare property at Portland, halfway between Ottawa and Kingston. On surface, the ore extends about 1700m by 75m. Based on 25 trenches and 74 drill holes totalling 8 000m of drilling cores, the company reported possible ore reserves of 750 000 t averaging 7% with a cut-off grade of 3%. The mill would have a design capacity of 300 t ore/day. For a good ore/waste ratio, the mine design includes an open pit to 20m, followed by an incline along the ore. Research indicated that the graphite would be suitable for the production of exfoliated graphite that is used in the manufacture of graphite foil.

North Coast Industries Ltd. of Vancouver, British Columbia has had a share consolidation during the year and is now called Consolidated North Coast Industries Ltd.. The company is seeking financing to develop its flake graphite project at Bissett Creek, Ontario. North Coast is proposing an annual production of 17 000 t of marketable flake graphite.

Growth area — Growing markets for graphite include exfoliated flake graphite rolled into sheet for the manufacture of gaskets and seals used in the automotive industry, heat exchangers and other products; high alumina and magnesia graphite bricks for the refractory industry; zirconia-graphite products; alumina-silicon carbide-Dgraphite refractories; and friction materials. Other growing markets for very high purity graphite products are in specialty applications, metal powders and motor brushes.