Wednesday, October 5, 2011

An expanded look at my trip to Focus Metals' Lac Knife property

In this post I will be writing more about my recent trip to Lac Knife, the deposit owned by Focus Metals (TSXV:FMS)(OTCQX:FCSMF). I am still quite inspired by what I saw, and also by the detailed tour narrative given by CEO Gary Economo. It quickly became evident, why Gary has such an energy and enthusiastic spirit, in regards to Lac Knife. The scenery was beautiful as we dropped below the clouds, as we prepared to land at Wabush airport in Labrador. As we drove from the airport towards Lac Knife in Quebec, it was very noticeable to me that this was indeed such a serene setting. As we got closer to Lac Knife this only intensified, until we actually entered the property.
The following 3 images are some of the outcrops that are visible at surface. All of these outcrops are easy to chip and it becomes clear that these are actually graphite.

 As we stopped in various locations on the Lac Knife property, and got out to walk around, it provided a chance to examine many of the surrounding outcrops, of which there were several. As I stood beside a couple of these outcrops, which dwarfed me, and listened as Gary explained that the over-burden is, generally speaking, about 3-6 meters thick. This heightened my sense of what this deposit truly held, and then to consider that this entire deposit is open both at depth and to the south. Considering the size and basic shape of the deposit, it was indeed quite a feeling, as I fully realized what I was standing on. When I reached the southern portion of the mineralized zone, and could look farther to the south, that was when I saw one large outcrop and a few smaller ones. The larger being approximately 2 to 2.5 meters high and approximately 2 meters in diameter. This is an image of the above mentioned outcrop which is beyond the southern edge of the known mineralized zone. As you can see this was not taken on my trip, due to some of my images not being usable, I graciously thank Focus Metals for providing these images.

There was lots of evidence of the last drilling program, with all the holes being clearly marked. As we talked about the previous drilling, Gary pointed out approximately where they would like to drill some of the holes in this expanded drilling program, which was announced on June 30, 2011.

In this news release, Gary states, " Samples will be drilled out by large-bore machines to depths of up to 300 meters – almost twice the depth of previous drilling – while new areas will be drilled on the southern portion of the Lac Knife property."
Once this drilling begins and Focus Metals begins to test the depth of just how deep the graphite truly goes, as well as drilling in the southern portion of the property, where no drilling has been performed to date, this could truly re-define Focus Metals completely.
Lac Knife reportedly has a 40 year mine life, (non NI43-101 compliant as yet), so it may not seem that important in that respect, however, if the resource can be enlarged, this will undoubtedly add to shareholder value.

According to Gary, the processing plant is most likely to be built in Fermont, Quebec. The distance from Lac Knife to Fermont is approximately 35 kilometers, with a portion of this on a paved provincial highway, and the remaining portion being a gravel road. The gravel portion will need some upgrading, however, the base of the road is in place. This road is maintained by the electric utility company, whose high-voltage transmission line passes with-in 7km of the property.

What I believe makes this deposit stand out from any other is the fact of the grade. Although this is non 43-101 compliant at this point, it has had major studies done as recently as 2001, and it would appear that the grade can be expected to be very close to 17%. This may not hold much meaning for some but it is in reality one of the highest concentrate flake graphite resource in the world at nearly 17% (pre-NI 43-101). It has attracted worldwide attention because of its purity and its economic value.
If that sounds extremely good, then let me tell you what has the potential to take Focus Metals into a leading global position. As we all know graphene has taken the world by storm, and as recent tests suggest, the graphite from Lac Knife has proven to produce some of the highest quality graphene. With the use of graphene actually entering products in our lives as we speak, it is with little difficulty that I can foresee Focus Metals becoming a go-to global company for graphite and graphene, which will obviously lead to enormous wealth for both the company and the shareholders.

I should add, that as we watch the markets as of late, it is evident that most if not all juniors and mid-tier companies are experiencing significant drops in their share price. For many this can become quite disconcerting, but I think this is a time when we need to watch very closely as I believe this is exactly what it takes to afford those with a high risk tolerance to gain some very envious possible entry points.

For those who find Focus Metals attractive as a possible investment choice, I strongly urge you to do your own due diligence on this company. As usual I recommend starting at the Focus Metals web site which can be found at

For disclosure purposes I have received no compensation for this post or my opinions. My travel expenses to Lac Knife were paid by Focus Metals. I own shares in Focus Metals.

No comments:

Post a Comment