|September 01, 2011|
Zimtu Capital Corp. Completes Transaction for Graphite Projects
|September 1, 2011 - Zimtu Capital Corp. (TSXv: ZC; FSE: ZCT1) (the "Company" or "Zimtu") is pleased to announce that the Company and one of its prospecting partners have signed an agreement with Strike Gold Corp. (TSXv: SRK) ("Strike") whereby Strike can earn a 100% interest in the Deep Bay East and Simon Lake Graphite Properties both located in northern Saskatchewan.|
For its participation in the transaction, Zimtu will receive staged payments totalling C$162,500 and 1,500,000 common shares over a 14-month period. Zimtu's partner, 877384 Alberta Ltd. will receive cash and share consideration equal to that of Zimtu. The vendors will collectively retain a 3% Net Smelter Returns Royalty on the properties. The transaction is subject to acceptance by the TSX Venture Exchange ("TSXv"). A finder's fee will be payable with respect to the transaction pursuant to the policies of the TSXv.
Deep Bay East Project
The Deep Bay East Project covers approximately 5,500 hectares (13,590 acres) and is located 25 kilometres east of the community of Southend, Saskatchewan and less than 15 kilometres east of the Deep Bay West Graphite Mine.
The property is noted for its potential to host a near-surface graphite deposit comprised of scarce, large-flake, high-purity graphite. The property is situated within high-grade metamorphic rocks of a sedimentary origin which is an ideal setting for the development of these types of deposits.
The property has been explored for graphite since the 1960s, with surface trenching, mapping, electromagnetic surveys and limited diamond drilling (4 holes totalling 383 metres). The historic drilling and trenching was completed on an east to northeast trending conductor along 1,600 metres of strike length. The exploration identified high grades of graphite across thick intervals as follows:
The Deep Bay East Project was explored by Sherritt Gordon Mines Ltd. in the 1960s and later by Superior Graphite Company in the 1970s as they searched for secure sources of flake graphite. The property was discovered at the same time as the Deep Bay West Graphite Mine located about 15 kilometres to the west of Strike's Property.
The Deep Bay West Mine is currently being advanced towards production and is host to a historic non-NI 43-101 compliant resource of "1.8 million tonnes grading 10.32% C to a depth of 60 metres (Saskatchewan Mineral Deposit Index Report #0480). The geology and grades of the Deep Bay East Project appear to be similar to the Deep Bay West Mine. Recent testing of graphite from Deep Bay West achieved >95% carbon content for all flake sizes +32+50+80+100 and -100. Further treatment was able to achieve >99% purity (Noble Bay Mining Development Inc.).
Simon Lake Project
The Simon Lake Graphite Project covers 3,472 hectares (8,579 acres) located approximately 280 kilometres northeast of La Ronge, Saskatchewan and is a short distance east of Highway 905. The property consists of several showings of flake graphite mineralization in historic drill holes which were discovered during the exploration of base metals. Historic Drill Hole 2-72 encountered a graphitic, biotite gneiss with visual estimates of zones containing from a few percent up to 70 percent graphite across a 68 metre interval. Approximately 5.5 kilometres to the southwest, along a conductive zone, Drill Hole 42-5 encountered a graphitic, biotite gneiss with visual estimates of graphite ranging from 5 to 70 percent across a 21 metre interval.
The future for the graphite market is bright. Demand for graphite has been increasing by approximately 5 percent per year since 2000 due to the ongoing modernization of China, India and other emerging economies, resulting in strong demand from traditional end uses such as the steel and automotive industries. Graphite also has many important new applications such as lithium ion batteries, fuel cells and nuclear and solar power that have the potential to create significant incremental demand growth. There is roughly 10 times more graphite in a lithium ion battery than there is lithium. Demand for graphite is expected to rise as electric vehicles and lithium battery technology are adopted.
Natural graphite comes in sev¬eral forms: flake, amorphous and lump. Of the one million tonnes of graphite produced annually, approximately 40 percent is of the most desirable flake type. China, which produces about 70 percent of the world's graphite, is seeing production and export growth leveling and export taxes and a licensing system have been instituted. A recent European Commission study re¬garding the criticality of 41 different materials to the European economy in¬cluded graphite among the 14 materials high in both economic importance and supply risk (Critical Raw Materials for the EU, July 2010).
Graphite prices have been increasing in recent months and over the last couple of years have more than doubled. Other public companies developing graphite projects in Canada include Northern Graphite Corp. (TSXv: NGC) with their Bissett Creek Project in Ontario and Focus Metals Inc. (TSXv: FMS) with their Lac Knife Project in Quebec. High-growth, high-value graphite applications require large-flake and/or high-purity graphite which are the prime exploration targets at Deep Bay East and Simon Lake.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by Mr. Neil McCallum, P.Geol., a qualified person.
About Zimtu Capital Corp.
Zimtu Capital Corp. invests in, creates and grows natural resource companies thereby providing a way for shareholders to indirectly participate and profit in the public company building process. The Company also provides mineral property advisory services helping to connect companies to properties of interest.
Zimtu Capital trades on the TSX Venture Exchange under the symbol "ZC" and the Frankfurt Stock Exchange under the symbol "ZCT1." For more information please visit the corporate website at http://www.zimtu.com or contact:
Toll Free: 1.877.377.6222
On Behalf of the Board of Directors
ZIMTU CAPITAL CORP.
President & Director
Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future.
Forward-looking statements in this news release include that Strike can earn a 100% interest in the Deep Bay East and Simon Lake Graphite Properties located in northern Saskatchewan; that in consideration for its interest, Zimtu will receive staged cash and share payments from Strike, that Zimtu's partner 877384 Alberta Ltd. will receive cash and share consideration equal to that of Zimtu; and that the vendors will collectively retain a 3% NSR on the property.
It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Risks and uncertainties include, but are not limited to, economic, competitive, governmental, environmental and technological factors that may affect the Company's operations, markets, products and prices. Readers should refer to the risk disclosures outlined in the Company's Management Discussion and Analysis of its audited financial statements filed with the British Columbia Securities Commission.
You can view the Next News Releases item: Mon Nov 7, 2011, Zimtu Capital Corp. Announces Graphite Property Transaction With Orocan Resource Corp.
You can view the Previous News Releases item: Thu Jun 16, 2011, Zimtu Capital Corp. Completes Transaction For Blachford Heavy Rare Earth Property, Thor Lake Area, NWT
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