QUEBEC – Canada Carbon of Oakville, ON, has completed the acquisition of the former Asbury graphite mine and announced its intention to fast track reopening. The property, near Notre-Dame-du-Lau 120 km north of Gatineau, QC, is the site of an open pit mine and mill that operated from 1980 to 1989.
Canada Carbon has made cash payments totalling $300,000 to former owner Uragold Bay Resources of Montreal. Uragold will receive a royalty of 0.75% on the net production cost for a period of 10 years after the restart of production. Canada Carbon has also issued 5.0 million common shares to Uragold, representing about 8.7% of Canada Carbon's issued shares.
Canada Carbon plans to put the mine back in production within 12 to 14 months. It hopes to achieve a pre-mill grade of 70% C after air classification. That would allow the concentrate to be milled at an off site location and eliminate the need for a tailings management area. The processing facility on site will be smaller, and permitting will be easier.
The Asbury property is discussed in detail at CanadaCarbon.com.