Canada Carbon Provides Update on Project Financing and Timelines to Production

November 23^rd, 2016, Vancouver, BC, Canada – Canada Carbon Inc. (TSXV:CCB) is pleased to provide an update on its progress towards the permitting and financing for a marble quarry and a graphite mine on its flagship Miller Project in southwestern Quebec. Amendments made by the Quebec government to the Mining Act were proclaimed in force on December 31^st, 2015, while certain Regulations to the Act applicable to small mining projects (less than 500 tonnes/day, non-metallic ore) were made public in September, 2016. Our review of the changes indicates that there will be an impact on the sequence in which the Company will receive the required approvals. However, these changes will not affect either the overall timelines to complete the permitting process or the subsequent development of production capability for either the marble quarry or the graphite mine. In contrast to the timelines published in the Company’s Preliminary Economic Assessment (“PEA”) filed to SEDAR on April 14^th, 2016, the quarry permit will now be issued after land use and environmental approvals have been obtained. Also, the community consultation and social impact assessment for the graphite mine will now be conducted as part of the revised mining lease application process, in accordance with the new Mining Act Regulations for small mining projects.
E. Richard Klue, B.Com, NHD Ext. Met, a senior member of the Company’s Technical Advisory Committee, advises, “In a series of press releases dated March 11^th, 2015, October 29^th, 2015, and March 7^th, 2016, Canada Carbon has discussed its work programs to concurrently advance the permitting and engineering of the Miller Project. The changes to the Mining Act and its Regulations have substantially altered the specifics of the required permitting on more than one occasion. In contrast, the engineering development program has been progressively advancing towards feasibility level assessment. The Canadian Institute of Mining Definition Standards requires that a Pre-Feasibility Study (“PFS”) includes a detailed trade-off analysis of various mine and mill parameters, in order to demonstrate a preferred methodology. Many of Canada Carbon’s engineering programs have already advanced to Feasibility Study (“FS”) levels of confidence, such that it no longer makes economic sense to publish a PFS-level Technical Report on the Miller Project. Moreover, the new permitting process will require certain elements of the documentation required for public consultation to be at the FS level. Therefore, Canada Carbon has elected to bypass the previously reported PFS, and will instead complete a FS on the Miller Project.”
Read the full press release.
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