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Berkwood Resources busy on the ground at Lac Gueret South graphite project

Snapshot

The group's flagship Lac Guéret Extensions graphite property is in Manicouagan County, Quebec

Mining picture

Quick facts: Berkwood Resources Ltd

Price: 0.025 CAD

TSX-V:BKR
Market: TSX-V
Market Cap: $1.74 m
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  • Drilling has shown large scale, high-grade graphite
  • Project lies beside Mason Graphite's big deposit which is soon to go into production
  • Experienced management

What Berkwood Resources does:

Berkwood Resources Ltd (CVE:BKR) describes itself as a group 'plugged into' high tech minerals.

The firm is on the hunt for commodities, which enable the 'modern revolution' in technology and is led by a team with collectively over 200 years experience who have been involved with the discovery of several producing mines.

The flagship project is the Lac Guéret Extensions graphite property in Manicouagan County, Quebec, which is three hours driving time from the city of Baie-Comeau, and which has numerous forest roads running through it.

Lac Guéret East Block consists of 38 claims covering 2,052 hectares. Berkwood also has an option to earn a 100% interest in the Lac Guéret South Block which consists of 288 claims totalling over 15,000 hectares. It is now one of the largest landholders in the area.

In addition, the group has acquired six new claim blocks adjacent to Lac Guéret South which consist of 58 claims covering 3,116 hectares.

A maiden resource for Zone 1 of Lac Guéret South showed 299,200 tonnes of graphite in the higher confidence indicated category, while the Lac Guéret Extensions property has been shown to host graphite of nearly 1.8 million tons grading 17% carbon as graphite (Cg) in the Indicated category and 1.5 million tons grading 16.4% Cg in the Inferred category.

Notably, the Lac Guéret project directly borders Mason Graphite’s property (which Berkwood's management developed) and shares similar prospective geology, including along-strike stratigraphic units, structure and geophysical anomalies

Mason Graphite’s project has at least 75mln tonnes of high-grade large flake graphite and has already demonstrated robust economics showing a US$160mln cost to build the mine, a 2.5-year payback, and a minimum of 24 years of mine life.

Other properties in the Berkwood portfolio are the Cobalt ford property, the Delbreuil lithium property, and the Roscoe vanadium site.

How is it doing:

Since securing a major milestone in the form of the maiden resource estimate for the  Zone 1 deposit at Lac Guéret South last July, Berkwood has seen a flurry of activity.

Shortly after the resource estimate, the firm unveiled its potential hub-and-spoke mining feed model designed to locate and test zones that may have been comparable to the firm's key Zone 1 graphite discovery.

This was followed by expansion activity in August 2019 as the group acquired the six new claim blocks adjacent to Lac Guéret South which have either known graphite showings or geological extensions of known graphite bearing formations.

The firm continued expanding the following month, acquiring another six blocks adjacent to the project.

Berkwood’s strategy has also begun to bear fruit, with testwork showing that graphite concentrate from the project can be expanded easily be purified to 99.95%, meaning it can potentially be sold in a wide-range of markets, a result that chief executive Tom Yingling said was “one of the final pieces of the puzzle” and “crucial” for the company.

This was followed in November last year by the signing of an offtake agreement with the Carbon 6 Group of Companies (C6) through which the company will supply 20,000 tons a year, subject to C6’s positive analysis.

Berkwood has also been raising cash to fund its activities, undertaking a non-brokered financing of up to C$100,000 in August last year followed by a private placing to raise C$800,000 in November.

Looking ahead, the company shows no signs of slowing down its exploration efforts, saying in October that exploration results from seven selected zones of its Lac Gueret Extensions property confirmed that there was “substantial potential along strike upside at the Zone 1 resource location [of the Lac Guéret South project] of at least 500m".

Inflection points:

  • More positive exploration results
  • Progression of C6 offtake agreement
  • More areas added to hub-and-spoke mining feed model

What the boss says:

In a statement regarding the C6 offtake agreement in November, Berkwood CEO Thomas Yingling said: “Our offtake agreement and MOU with C6 adds depth to the Berkwood Lac Guéret Extensions evaluation initiative and our emerging plans to fund our development studies for Lac Guéret South.”

“We look forward to working with C6 to further characterize the potential products from Lac Guéret South, and to extend our relationships in the graphite trade community”, he added.

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Full interview: Berkwood Resources agrees in principal to offtake agreement...

Berkwood Resources (CVE: BKR) President and CEO Tom Yingling sat down with Steve Darling from Proactive Vancouver to discuss the company agreeing in principle on an offtake agreement with an eastern-based company called Carbon 6.   Yingling talks about the specific details of this...

on 26/11/19

4 min read