PROJECT UPDATE: Zenyatta CEO Praises Initial Resource Estimate for Albany

Zenyatta Ventures (TSXV:ZEN), the much-discussed owner of the magmatic hydrothermal (vein-type) Albany graphite deposit, located in Northeastern Ontario, Canada, today provided the results of its initial NI 43-101 compliant resource estimate on the project.

The report, completed by Roscoe Postle Associates, shows indicated mineral resources of an estimated 25.1 million tonnes at an average grade of 3.89-percent graphitic carbon (Cg) containing 977,000 tonnes of Cg. Inferred mineral resources clock in at an estimated 20.1 million tonnes at an average grade of 2.2-percent Cg containing 441,000 tonnes of Cg.

In its press release, Zenyatta notes that due to an assumed market price of $8,500 per tonne Cg product, it used a cut-off grade 0.6-percent Cg in reporting the mineral resources — that is “relatively low” compared to flake graphite Cg projects. The company’s belief is that the hydrothermal graphite from Albany will fetch higher prices than flake graphite.

Getting to this point has been a bit of a bumpy ride for the company. Over the past six months or so in particular, Zenyatta has had to defend itself against a number of critics, including Mickey Fulp of mercenarygeologist.com and Melissa Davis, senior editor of The Street Sweeper.

Throughout those attacks, CEO Aubrey Eveleigh has maintained that the resource estimate for Albany, originally slated for release in September or October, would help clear up the situation. Commenting on today’s news, he said that the company is “extremely pleased” with the results, adding, “[i]t’s significant to note that the graphite mineralization extends below the preliminary pit shell and is also open at depth but not included in these Mineral Resource estimates.”

Eveleigh said that moving forward, Zenyatta will “continue with market studies” and work on completing a preliminary economic assessment for Albany by the second quarter of 2014.

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article. 

Editorial Disclosure: Zenyatta Ventures is a client of the Investing News Network. This article is not paid-for content. 

Related reading: 

Zenyatta Clarifies Geology, Metallurgy of Graphite Deposit

Zenyatta Caught in the Crossfire, CEO Responds