TORONTO, Ontario (Jan. 24, 2013) – Ubika Research today initiated coverage on Alabama Graphite Corp. (CNSX-ALP) with a Ubika Model Price of $1.57 (Jan. 23 close: 57¢), citing as some of its reasons successful Phase 1 drilling completed in time, a seasoned management team, “past production in the area, the near surface and non-complex nature of the resource, a mining friendly jurisdiction and availability of robust infrastructure.” To download the report Please visit the Alabama Graphite hub in SmallCapPower at http://www.smallcappower.com/companies/files/initiation-report-on-alabama-graphite-corp-date-of-issue-january-24-2013
All of the above reasons, says Ubika’s report on the company titled “Gearing up for resource estimation after successful Phase 1 drilling,” and released today, will allow ALP to advance its Coosa Graphite Project to production “within a reasonable budget and within a reasonable time frame.”
Vikas Ranjan, Ubika’s Managing Director and lead researcher behind the report, says, “The project lies on private property and hence there is little or no chance of Coosa Graphite getting entangled in lengthy federal or provincial permitting requirement. In fact, ALP does not even have to undertake an Environmental Impact Statement. All of these factors will help it fast track the process to put the mine into development.”
The Coosa project is located at the core of pre-discovered graphite mineralization belt in Alabama, which has a long history of graphite mining (1900-1953). The area has large-scale graphite mineralization occurring as weathered, oxidized ore and is near surface, which aids in producing clean graphite concentrate while preserving larger-size graphite flakes. The property is not populated whatsoever and unlike other graphite projects in North America is located in a temperate climate zone. All these factors make exploration and development at Coosa relatively easier than the other projects being advanced in North America.
As part of its Phase 1 drilling program, ALP drilled 66 holes and has received the assay results of 14 holes (five core holes and nine holes fencing the grid), 12 of which intersected graphite mineralization. All the remaining results are expected next month.
The Ubika research report notes: “ALP expects to establish a large resource (~30 million tons) at Coosa and is planning a ~$75 million capital raise for project completion. Following due diligence on the company’s current progress and discussion with the management, we believe the company is well positioned to put this project on stream within three years.” (NOTE: all references to the current resource estimate in the report relate to Ubika’s estimation of likely resource, which are not compliant with NI 43-101 standards and there is no guarantee that the company will be able to obtain the resource and/or to upgrade it to meet the NI 43-101 standards.)
What makes the project extremely interesting, says Ranjan, is the huge push in China, Europe and the U.S. for electric vehicles and hybrid electric vehicles, which use Li-ion batteries, which in turn use graphite as anodes. President Barack Obama’s $5-billion stimulus funding envisages putting one million plug-in hybrid electric vehicles or PHEVs on the road by 2015, and six manufacturers have already invested $3.7 billion to achieve this, Ubika’s report notes.
Ubika also bases its conclusions on ALP’s “seasoned management team led by Daniel Spine, President, CEO and Director. Under his leadership, the company successfully has moved at breakneck speed into the graphite mining industry.” The report points out that management and directors are highly qualified and have extensive experience in mineral exploration, mining and junior mining, finance, capital markets, and accountancy. It makes special mention of Jean Depatie, Chairman, who “is credited with putting the world’s largest graphite mine (the Lac-des-Îles Graphite Mine in Quebec) into production and was awarded the Prix d’Excellence by the Government of Quebec.”
Ubika’s report is available for download at http://www.smallcappower.com/companies/files/initiation-report-on-alabama-graphite-corp-date-of-issue-january-24-2013.
Ubika Research is an investment research and capital market services firm based in Toronto and Vancouver with a proven track record of identifying and launching coverage of high potential small cap stocks at an early stage, thus offering timely market insights. Its specialty is small-cap companies with a market capitalization of <$5 billion.
DISCLAIMER: Ubika Research has received compensation from Alabama Graphite Corp. for providing analyst research coverage. Except for the historical information presented in its reports, matters discussed in these documents contain forward-looking statements that are subject to certain risks and uncertainties. Hence, actual results could differ materially from any future results, performance or achievements expressed or implied in the reports.
Ubika Research and www.smallcappower.com (are both divisions of Ubika Corporation), and are not registered with any financial or securities regulatory authority, and do not provide nor claim to provide investment advice or recommendations in its reports. Readers are encouraged to talk to their own investment advisor before making specific investment decisions. Our full disclosure is available at http://smallcappower.com/disclosure.aspx
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