October 15, 2014 — Hallgarten & Company LLC, independent equities analysts in the mining and metals space, is pleased to announce that it has launched coverage of Alabama Graphite Corp. ($ALP:CA) (ABGPF) , an emerging graphite company with concessions covering two past-producing mines in Alabama.
Christopher Ecclestone, the author of the report, commented “It is interesting to note that the recent Bama Mine acquisition brings a significant past-producing mine into the company’s portfolio of assets and has the potential to leapfrog other graphite companies in the race to get into production”. He goes onto add, that in reviewing the sector “there were less than 30 in total and really only a couple of handful of serious players intending to stay the course. Alabama Graphite is the leading contender in the US to revive production of this increasing strategic mineral where it is primarily dependent upon Chinese sources.”
The report references that the company’s existing NI 43-101 resource estimate identifies an indicated resource of 38 million tons at 2.60% Cg, the largest indicated flake graphite resource in the USA, and an inferred resource of 27 million tons at 2.87% Cg.
Additionally, it is worth mentioning that the land use is forestry with thick mixed hardwoods and pines, and significant areas of pine plantations which are harvested every 20 to 25 years. This has provided significant infrastructure already built in terms of roads. For the sake of convenience and managing expenses the initial surface sampling was kept in close proximity to the network of logging/timber roads where the graphitic schist outcrops were visible
The report references historical data, such as a 1940 report from the U.S. Bureau of Mines. This report sampled all the known occurrences of graphite in Alabama and the published results showed the Bama mine to be unique. A sample taken from the pit wall not only registered the highest percentage of graphite (7.85% Cg), but also contained 17% jumbo flake.
The report concludes that the potential for Alabama Graphite to become “the stealth performer in the space” and adds that “with the likelihood that it will capture the imagination of US investors more than other projects outside the US”, Hallgarten & Company rate the company as a Long at this time with a 12-month target price of CAD$0.85.
About Hallgarten & Company
Hallgarten & Company was founded in 2003 by the former partners of a well-known economic think-tank. Our output encompasses top-down and bottom-up research from a Classical Economic (Austrian School) perspective. Over the years, the team has successfully picked trends using our macroeconomic underpinnings to guide investors through the treacherous waters of the markets. It was only natural, in light of the focus of Classical Economics upon the "real value" of monetary assets that the firm’s strengths should ultimately have become evident in resources sectors and projections of commodity trends.
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