The Aukam Graphite project is a property located in Namibia’s Karas Region in Africa. The Aukam property is comprised of Exclusive Prospecting Licences EPL 3895, EPL 6710, EPL 7512, EPL 7513, in respect of base and rare metals, industrial minerals, and precious metals. Located in the district of Bethanie, Karas region of southern Namibia, the licence areas total 137,473 hectares, are contiguous and include the farm Aukam104 and Harichab121.

The Aukam graphite deposit has the characteristics of a vein-style graphite deposit. The graphite is predominantly concentrated in veins, with only minor disseminated graphite occurring in the host rock. It is believed that the graphite formed by precipitation from a CO2 – rich hydrothermal fluid channeled along the shear zone, and possibly related to an intrusion at depth.

The graphite in the Aukam area is hosted by altered Garub Sequence granite that is exposed in an erosional window in the Nama cover (Goldfields, 1987b). In the vicinity of the graphite occurrence, the granite is coarse grained, variably altered (see below) and generally shows a well-developed foliation with an easterly to south easterly trend and a south to southwest moderate to steep dip.

Schist and gneiss, both of which are quartz and biotite dominant, well foliated rocks, also occur in the vicinity of the graphite occurrence. The gneiss, which is distinctly banded, forms discrete positively weathered outcrops to the east and west of the main workings. Both lithologies appear to be intruded by the granite, primarily as narrow interfingering apophyses or dikes.

Late pegmatite veins, which are widespread in the area, cut the altered granite in places above the workings. Dolerite dikes also cross cut the granite in the vicinity of the graphite workings.

Alteration is most apparent in the granite and includes K-feldspar, sericite, epidote and kaolinite (de Kock, 1935, Goldfields 1987b). There appears to be a zonation of alteration of the granite from a general, widespread kaolinization over an area of at least 450m x 100m, within the shear zone, to intense epidotization in the immediate vicinity of the graphite veins and lenses. Hematite –limonite is also often found closely associated with the graphite mineralization, typically adjacent to the massive lenses as a halo and as stockwork type veins in places. Local concentrations of red/pink garnet also occur in the granite.

Graphite mineralization at Aukam occurs as massive lenses and veins, and as disseminated patches mostly associated with strong alteration. It is hosted by an east-west trending shear zone traceable on surface for about 400 metres along with mapping indicating the mineralization may extend for four kilometres.

Alteration and mineralized are believed to be caused by CO2-rich fluids channeled by the shear zone (Goldfields 1987b). De Kock (1935) speculates that the graphite was introduced into fissures and fractures by hydrothermal solutions subsequent to the intrusion of the granite since the granite is strongly altered in the presence of graphite. This suggests a hydrothermal fluid responsible for the alteration of the granite and the precipitation of graphite, possibly due to a redox reaction with iron oxides hematite and limonite that often accompany significant occurrences of graphite.

Goldfields (1987b) suggested that the hydrothermal fluids may be related to an intrusive at depth to the east of the deposit along the extension of the shear zone. The presence of a strong magnetic anomaly is given as evidence of the intrusive.

The Aukam property covers a historical vein graphite mine that consists of five underground adits and an open pit. Associated with the old workings are five surface stockpiles that still contain significant graphitic material.

Three graphite stockpiles, lumps, fines and coarse fines, resulting from bulk sampling and screening programs undertaken by Gratomic are stored at Aukam and ready to be processed. Assays of samples of the coarse fines ranged between 9.83% and 15.52% Cg, and averaged 13.06% Cg. Samples of fines ranged between 8.06% and 53.03% Cg and averaged 17.92% Cg and samples of lumps ranged between 16.90% and 61.06% Cg and averaged 46.92% Cg.

Gratomic Inc. is aiming to transition to an open pit operation as early as the end of 2021.

Gratomic Inc. currently boasts two outstanding pre-production purchase agreements for its high purity, vein graphite. The first of which exists with Phu Sumika. Gratomic has agreed to supply Phu Sumika with 37,500 tonnes of graphite over a five year term. Phu Sumika will use Aukam graphite to fulfill its end user requirements as a top graphite supplier for lubricants and batteries. The second exists with TODAQ for 5,000 tonnes of graphite to be supplied over three years and will be held in reserve as a backstop to underpin that companies TDN notes.

On March 29, 2021, Gratomic announced that it has officially started the commissioning phase of its processing plant in Aukam, Namibia. Commissioning will begin with the crushing circuit and progress throughout the other areas of the plant systematically in order of progression.

Commissioning of a mining processing plant is usually divided into 6 progressive stages:

C0 - Constructed to Design including Factory Acceptance
C1 - Pre-commissioning
C2 - Direction Testing
C3 - No Load / Dry Commissioning
C4 - Load / Wet Commissioning
C5 - Project Completion

Gratomic is currently entering into Direction Testing (C2 phase) of the equipment composed of the crushing circuit of the plant. This stage consists of energizing the equipment and ensuring it rotates in the right direction, stroking the control systems, calibrating instruments and verifying protections.

The final layout for the processing plant has been completed. ........