Wednesday, May 25, 2011

Focus Metals has more than just graphite

Focus Metals (TSXV:FMS) is becoming well known for its huge high grade graphite deposit. Although the actual NI43-101 is not quite completed and released yet, there is little surprise expected when this document does get released. This is due to the immense amount of work that has been performed historically, not once but twice, as Lac Knife came so close to being brought into production. Both earlier attempts to bring the deposit into production were met with a slumping in prices along with a reduction in demand. This scenario has changed dramatically, and looking forward Focus Metals has achieved what could prove to be the ultimate of timing in their efforts to bring Lac Knife into production, at a time when not only has demand risen significantly with predictions of even more demand growth. Add to this the fact that China, who produces about 70% of the global supply, has put graphite on the list of minerals and metals that are restricted on export amounts. This has pushed prices of graphite up noticeably, with some European buyers reporting rises of up to 50% since the beginning of this year alone, and more price increases forecasted, yet to come. The market seems to be holding back somewhat, in regards to Focus Metals stock, and this could be due in part to the anticipated release of the NI 43-101. While it is common knowledge that the requirements are thus, that the NI 43-101 is necessary, it is not without due respect that we anticipate the historical data to be very accurate. Much of the historical data was accumulated not only by the companies who were seeking to put this deposit into production but is also a compilation of data by various government departments.

If we only had graphite to consider, when discussing Focus Metals, it would be a company worthy of a close look. There is much more to the story of Focus Metals as we look more closely at the entire collection of properties Focus Metals holds.

Focus Metals has another project which is known as Kwyjibo property.  The Kwyjibo Property, totalling 118 mining
titles and covering 6,278 hectares, is located a
few kilometres north of Manitou Lake, Quebec
North Shore Area. It is also located 25 kilometers
east of the Quebec North Shore and Labrador
railway line and is accessible by air from Sept-Îles.

The Kwyjibo Fe-Cu-REE-(Au) mineralization system was discovered in 1993
during a follow-up of regional geochemical lake sediment anomalies.

On surface, more than ten polymetallic showings, including Josette and Malachite,
were found over a strike length of 4 kilometers at that time.

Most of the showings found on the Property consist of massive magnetite
mineralized with copper and REE. The mineralized zones consist of a variety
of minerals including magnetite, chalcopyrite, pyrite, pyrrhotite, bornite,
molybdenite, apatite, and fluorite.

The dominant REE-bearing minerals are allanite and apatite. Less abundant
REE-bearing minerals, but of economic interest, include britholite and kainosite.
With cerium (Ce) and lanthanium (La), neodymium (Nd) is the most prominent
REE and represents a 1/3 of the total REE content.

Since 1993, airborne and ground geophysics (Mag,VTEM, IP and radiometry),
stream and soil sediments geochemical surveys, prospecting and mapping, and
39 shallow drill holes totalling 5,807 meters have been done on the mineralized
zones of the Property. The Kwyjibo Fe-Cu-REE-(Au) mineralized system is still
open in many directions and some geophysical anomalies (VTEM conductors)
were not drill tested.
Within the Grenville Geological Province hosts a Mesoproterozoic REE-Cu-(Au)
deposit considered as the best iron oxide copper gold (“IOCG”) exploration
target in Quebec.

I would suggest to anyone who has not yet done so, take the time to do some due diligence on Focus Metals, and I believe you will find these products will bring considerable value to the shareholders of Focus Metals. The fact that the company has these extremely attractive projects added to the fact that they have a management team that has displayed nothing short of dedication and concern to both the company and to the shareholders, brings me to the conclusion this company has enormous potential.

For those interested in taking a closer look at Focus Metals I suggest going to the company website at Everyone should do their own due diligence before buying or selling stocks in any company.

For disclosure purposes I have received no compensation of any kind for this post. I do own shares in Focus Metals.

1 comment:

  1. As usual, a well written, full of information piece on another asset of Focus Metals.