Northern Graphite jumps on graphite market potential from Bissett Creek

Northern Graphite (CVE:NGC)(OTCQX:NGPHF) has confirmed that large flake graphite from its Bissett Creek deposit in Ontario has a spherical graphite yield of 50 percent, which it expects will help the company target higher value markets. Spherical graphite is the anode material used in lithium ion batteries,  which is expected to be the driving force behind a huge increase in demand for the strong material. Industry yields are generally 33 percent or less, according to the Ottawa, Ontario-based company's statement."Our goal is to create a technology company that is focussed not only on higher value markets but on reducing battery costs, increasing their capacity and meeting the growing needs of the electric vehicle market," said chief executive officer Gregory Bowes."The unique nature of the Bissett Creek deposit, and the technologies that Northern has developed, provide the company with significant competitive advantages."The company said that its Bissett Creek project has the "best location and infrastructure of any new graphite project", leading to low capital and operating costs. Ninety percent of production will be battery-grade, said Northern, which is "by far the highest in the industry as most deposits produce only 25-66% battery grade concentrates," it said.Large flake graphite currently sells for about US$1,350 per tonne, whereas the price of uncoated spherical graphite is US$3,500 per tonne, and over US$10,000 per tonne coated.Northern Graphite has developed its own process for coating spherical graphite, as well as a process for purifying both spherical graphite and flake concentrate in an environmentally sustainable, and cost effective way.The company also said that 50 percent of Bissett Creek production will be extra-large flake, which is required for the expandable graphite market, including consumer electronics, fuel cells, gaskets and construction materials, among other uses. Shares rose to as high as C$1.33 in Toronto today, and were lately trading at C$1.24, up more than 5 percent.

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