On July 20, 2023, FTI Consulting Canada Inc. was appointed as Receiver of the assets (Black Crystal project), undertakings and property of Eagle Graphite Corporation (parent company - Eagle Graphite Incorporated) pursuant to an order of the court.
On August 16, 2023, by an order of the court, the Receiver was authorized to conduct a sale process.
The Receiver and Weaver Capital Corporation have entered into an agreement of purchase and sale dated August 10, 2023 (the "Stalking Horse APS").
Summary:
The graphite mineralization found at the Property is best categorized as a disseminated flake graphite deposit according to Simandl and Kenan (1997), who referenced the Property in their paper entitled, “Crystalline Flake Graphite”. These deposits are commonly hosted by porphyroblastic and granoblastic marbles, paragneisses and quartzites in upper amphibolite or granulite grade metamorphic terrains.
Graphite mineralization on the Property is almost ubiquitous, occurring locally in all rock types except for the intrusions. Calc silicate gneisses are the preferred host for the most consistently higher-grade mineralization. The calc-silicate gneisses have been split into two groups (Augsten 2001), Cs1 and Cs2, on the basis of mineralogy (presence or absence of spinel), texture, colour and the concentration of graphite. Cs2 typically contains 2 to 5% flake graphite, or organic carbon, referred to as fixed carbon (FC). Graphite also occurs as discrete disseminated grains most typically from 0.5 mm to 1 mm in diameter. These crystals have developed with a preferred orientation parallel to sub-parallel to foliation. Cs1 typically contained 2 to 3% graphite. While pyrite is fairly common throughout the section, very fine grained disseminated pyrite ± pyrrhotite is common in the graphitic calc-silicate host rock.
A regolith has formed in-situ above both Cs units locally, and there also exists a transition zone of slightly weathered Cs material, which is less friable than the regolithic zone. Of the two calc–silicate units, the weathering is typically more pronounced over the Cs2 unit, and while both of these materials are graphitic bearing, the in situ weathered Cs2 material is of primary importance. As this material is sited immediately above the areas proposed for hard rock quarrying, it makes a desirable initial target due to the ease of extraction, higher grade, and the ease of beneficiation.
As mentioned above the regolithic and transition zones are by and large the best targets on the Property, as overall FC concentrations are often from 3 to 5% FC in the Cs2, and 2 to 3% FC in the Cs1 derived material. Graphite may reach concentrations of 1 to 2% FC in glacio-fluvial till locally, although there are areas where numerous blocks of Cs material comprise boulders or cobbles within the till, and graphite concentrations can be in the 2 to 3% FC range.
The graphite mineralization on the Property is particularly amenable to extraction by quarry methods as it is lying sub-parallel to slope of the hillside in the Mine Lease area and offers the benefits of a low stripping ratio.