SRG Graphite Reports on Latest Metallurgical and Expandable Graphite Test Results

MONTREAL, March 14, 2018 (GLOBE NEWSWIRE) -- SRG Graphite Inc. (TSXV:SRG) (“SRG” or the “Company”) today is pleased to announce progress in the development of its mineral processing flowsheet designed in conjunction with DRA Americas and SGS Canada. Additionally, the Company has received positive testwork results on the expandable properties of its graphite flakes from the Lola deposit.

The key result highlights are as follows:

• Preliminary testwork suggests wet scrubbing as an alternative to traditional grinding is possible, which would reduce capital and operating costs while promoting flake size preservation.
  
  
• Ongoing testwork suggests the developed flowsheet would allow for 95%-98% Cg concentrate to be produced over all size fractions.
  
  
• Performed expandability testwork on +50mesh and +80mesh graphite concentrate obtained 350ml/g and 300ml/g, respectively, well over industry requirements.

Scrubbing Testwork

A first round of testwork is ongoing at SGS Canada Lakefield, with focus on the grinding method, flotation and flowsheet development. SGS Canada conducted positive preliminary testwork, using rotary scrubbing for mineral size reduction and graphite liberation. These results support the hypothesis that, for SRG Graphite’s weathered mineralized material, wet scrubbing alone, instead of the conventional primary grinding, is sufficient to produce the particle size required and ensure graphite liberation for flotation. The wet scrubbing method promotes graphite flake size preservation during mineral size reduction.

“The Installation of rotary scrubbing circuit presents a great opportunity for the reduction in capital and operating cost, as rotary scrubbing equipment is typically less expensive and consumes less electric power compared to conventional (SAG, rod or ball mill) grinding circuit employed for the same feed rate and processing duty,” said Volodymyr Liskovych, P.Eng. Senior Process Engineer, DRA.

Flowsheet Refinement

In addition to the ongoing testwork for the Company’s preliminary economic assessment, SGS processed a 120kg bulk sample of material from the Lola deposit using its latest flowsheet. The resulting grade concentrate is between 94.8% Cg and 97.9% Cg depending on the size fraction. Purity of 96.6% Cg was obtained for the -100mesh concentrate, and 97.9% Cg was obtained for the +50mesh. Jumbo flakes alone (+50mesh) accounted for 39% of the total concentrate produced.

“The ongoing testwork continues to demonstrate a simple flotation flowsheet applied to SRG Graphite’s ore produces high purity graphite concentrate with a significant amount of large and jumbo flake fractions,” says Russell McCarley, Senior Metallurgist at SGS Canada.

Graphite Expandability Testing

In addition to flowsheet development, the Company has tested its graphite flakes with specialized German graphite laboratory, ProGraphite, for expandability properties. ProGraphite performed expandability testwork on +50mesh and +80mesh graphite concentrate and obtained 350ml/g and 300ml/g respectively using an industry standard method for expandability. Sulphuric acid (H₂SO₄) acted as acid and donor of the intercalation molecules, while potassium permanganate (KMnO₄) acted as oxidizing media to start the intercalation.

“To our knowledge, graphite flakes treated with this method typically require ratios higher than 250ml/g and 200ml/g for the +50mesh and +80mesh respectively, to be suitable for expandable graphite markets. The coarse nature of SRG Graphite’s flakes along with the results obtained during testing, makes this market particularly interesting for the Company,” Christoph Frey, Managing Director at ProGraphite GmbH said.

The technical information in this release has been reviewed and approved by Raphael Beaudoin, P.Eng, Director of Operations, SRG and a 'qualified person' as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

ABOUT SRG

SRG is a Canadian-based company focused on developing the Lola graphite deposit located in the Republic of Guinea, West Africa. SRG is committed to operating in a socially, environmentally and ethically responsible manner.

For additional information, please visit SRG’s website at www.srggraphite.com.

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Forward-Looking Statements

This press release contains "forward-looking information" within the meaning of Canadian securities legislation. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identified by the use of forward-looking terminology such as “reduce”, “suggest”, “opportunity”, “demonstrate”, or variations of such words and phrases or state that certain actions, events or results "may", "could", "would" or "might". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: (i) volatile stock price; (ii) the general global markets and economic conditions; (iii) the possibility of write-downs and impairments; (iv) the risk associated with exploration, development and operations of mineral deposits; (v) the risk associated with establishing title to mineral properties and assets; (vi) fluctuations in commodity prices and other risks and factors described or referred to in the section entitled "Risk Factors" in the MD&A of the Company and which is available at www.sedar.com, all of which should be reviewed in conjunction with the information found in this news release

Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued exploration activities and no material adverse change in mineral prices. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company's business, operations and exploration plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is given as of the date of this press release, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws.