- Dedicated to the production and transformation of natural graphite.
- Strategy includes the development of value-added products for electric vehicles, lithium-ion batteries, and fuels cells
- Has entered the promising graphene market through UK joint venture
What Mason Graphite does:
Mason Graphite Inc (TSX-V:LLG, OTCQX:MGPHF) is a Canadian mining and mineral processing company dedicated to the production and transformation of natural graphite.
Its strategy also includes the development of value-added products for green technologies such as electric vehicles and transport electrification.
The company owns 100% of the rights to the Lac Guéret graphite deposit in Québec, one of the richest and highest-purity grades in the world, which it is currently developing. The Lac Guéret project consists of 215 claims covering 11,630 hectares and is easily accessible year-round by main logging roads via highway 389.
Notably, the property falls within the “Plan Nord” territory in the northeastern part of the province -- an economic development strategy launched by the Government of Quebec to help advance mining projects located north of the 49th parallel.
In December 2018, the company issued the results of an updated Feasibility Study for the project that featured a long-life, low-cost operation with an Internal Rate of Return (IRR) of 27.7%. However, the study considered only a fraction of the total Measured and Indicated Mineral Resources.
With a capacity of about 52,000 tons of concentrate per year, the project has an estimated initial production life of more than 25 years, after which only 7% of the estimated total resources will have been extracted. Currently, only one graphite mine is active in North America.
Mason Graphite is also advancing a detailed study for large-scale production of value-added graphite products. Such second transformation includes micronization, additional purification, spheronization, and coating, resulting in graphite products suitable for a wide range of technical applications including carbon brushes, brake linings, and lubricants as well as electrochemical applications such as alkaline and lithium-ion batteries and fuel cells.
It also recently entered the promising graphene market through a joint venture with a UK-based firm.
How is it doing:
Mason Graphite, flushed with $21 million in capital, has identified two graphite zones on its Lac Guéret property: the GC Zone and the GR Zone.
Graphite mineralization in the GC zone has been mapped on strike up to 1.2 kilometers (km) and at width up to 400 meters (m). The zone has excellent mineral resource growth potential as the mineralization remains open at depth. Graphite mineralization in the GR zone has been identified on an area of up to 1 km and up to 110m wide.
With the development of an open-pit mine and the establishment of a processing plant in the industrial park Jean-Noël-Tessier in Baie-Comeau, the project will generate about 100 direct jobs in the operating phase.
Meanwhile, the company in September 2021 closed on its purchase of strategic assets related to a patented graphene processing technology from UK specialty chemical company Thomas Swan & Co Limited through joint venture company Black Swan Graphene Inc.
Mason Graphite and Thomas Swan own 66.67% and 33.33%, respectively, of Black Swan Graphene, which is expected to go public in coming months. Mason Graphite paid £3 million to Thomas Swan for its technology and invested C$2.5 million in Black Swan Graphene for working capital purposes. It also appointed Harry Swan, CEO of Thomas Swan, as board chairman of Black Swan Graphene.
In connection with the transaction, Black Swan Graphene has acquired a license from Trinity College in Dublin to produce exfoliated defect-free, non-oxidized 2-D materials in large quantities (TCD License), which was held previously by Thomas Swan.
In addition, Black Swan Graphene has granted Thomas Swan a license to graphene processing technology for production of up to 1,000 tonnes per year and has sub-licensed the TCD License to Thomas Swan.
Thomas Swan will also contribute its exclusive production and commercialization expertise while providing access to personnel and technical support, and deliverables from its operation in Northern England.
Black Swan Graphene aims to establish a large-scale commercial production facility in Québec to leverage the province’s competitive and green hydroelectricity as well as be near to Mason Graphite’s planned production sites.
These factors are key and will accelerate the production and commercialization of the graphene developed by Thomas Swan by integrating the supply chain and lowering production costs.
The graphene processing technology allows the production of high-performance graphene at a sufficiently low cost to encourage rapid commercial penetration into industrial applications. Graphene also can be used to strengthen lightweight polymers for the transportation industry.
In September 2021, a graphene process patented by Thomas Swan and owned by Black Swan Graphene was used in the concrete mix poured during construction of a large residential development in the UK and is currently being trialed in rail, air, road, marine, residential, commercial, and civil engineering applications throughout the country.
This graphene-enhanced concrete reduces C02 emissions by 30% and lowers overall costs by 20%. It also generally eliminates the use of rebar reinforcement, and mainly because of its resistance to water penetration, results in a longer-lasting concrete.
And Black Swan in October 2021 was granted a US patent and two Canadian patents for the apparatus and method for bulk production of atomically thin 2-dimensional (2D) materials including graphene, bringing its global patent portfolio to 16 and consolidating its leading position in the specialized market.
Inflection points:
- Become a fully integrated graphite producer
- Exploit Increasing demand for high purity flake graphite
- Advance development of graphene products for commercialization
What the boss says:
“We couldn’t be more excited to embark on this new venture with Thomas Swan, a highly respected and dynamic company, in the promising world of graphene,” said Fahad Al-Tamimi, chairman of Mason Graphite., commenting on the company’s deal to enter the graphene market via its special purpose subsidiary and joint venture Black Swan Graphene.
“Graphene is no longer theoretical, but undergoing a transformative progress in applications, production, and commercialisation. Yet very few companies are able to produce high-performance graphene at a cost sufficiently low to penetrate industrial markets.”
Al-Tamimi added: “I believe Black Swan Graphene will be one of them. Not only this new venture is expected to create meaningful graphite demand and is, therefore, a natural extension of the Lac Guéret graphite project, but it truly transforms the company’s potential as it elevates Mason to a preeminent position within the fastest-growing segment of the carbon industry.”
Contact the author: patrick@proactiveinvestors.com
Follow him on Twitter @PatrickMGraham