SASKATOON, SK / ACCESS Newswire / April 15, 2025 / Abasca Resources Inc. ("Abasca" or the "Company") (TSX V:ABA) is pleased to announce the maiden mineral resource estimate (the "MRE"; Table 1) of its Loki Flake Graphite Deposit (the "Loki Deposit") at its 100%-owned Key Lake South (KLS) Project (Figure 1 and 2) (the "Project") in close proximity to regional infrastructure which services Cameco's Key Lake operation. The graphite MRE denotes a major milestone for the Project and positions Abasca to play a significant role in contributing to North America's secure supply chain of graphite.
Mineral Resource Highlights
Total Inferred Resource: 11.31 Mt of Graphite at an average grade of 7.65 % Cg.
Contained Graphite: 0.86 Mt
Cut-off Grade: 2.78 % Cg
The MRE, with an effective date of April 10, 2025, was completed by Understood Mineral Resources (UMR) in accordance with NI-43-101 guidelines and is primarily based on the results from the 2024 summer drill program, which included 20 holes totaling 5,499 m, as well as re-sampled holes from 2016 drill cores (Figure 3). The 2024 drill program was designed to support an inferred resource and provide a foundation to further expand and develop the Project in subsequent campaigns, including the Company's current 2025 winter drill program. The Loki Deposit remains open at depth and along strike.
Graphite's demand has been increasing in recent years from the electric vehicle and energy storage industries in addition to the continued needs arising from graphite's traditional industrial applications. In 2024, North America's average import price was over US$1,200/tonne. Graphite is one of the 31 critical minerals designated by Canada's federal government and it is one of the 6 minerals in the Canadian essential supply chain.
"The independent mineral resource estimate of the Loki Deposit is very encouraging for Abasca to carry out further drilling for resource expansion and upgrading. Achieving this important milestone has greatly de-risked the Loki Deposit for development and creation of shareholder value" stated Dawn Zhou, President and CEO.
The Loki Deposit is hosted in the metapelitic rocks of the Wollaston Domain along a northwest-trending fault zone with graphite mineralization extending from the overburden-basement contact down-dip toward the southwest. Calc-silicate and pegmatite rocks are intersected in the hanging wall, interlayered with the metapelitic rocks, which are all structurally overlying granitic gneiss.
Brian McEwan, Vice-President of Exploration, stated, "This initial resource estimate provides Abasca a great foundation to continue advancing the Loki Flake Graphite Deposit. The independent resource estimate model confirms our own internal estimate and highlights the strong continuity of the mineralization intersected in each hole. We are looking forward to the continued delineation of the deposit and moving the project into the next stages."
Table 1: Pit-constrained inferred mineral resource estimate of the Loki Flake Graphite Deposit.
Category
Cut-off Grade
(% Cg)
Tonnage
(Mt)
Grade (% Cg)
Contained Graphite
(Mt)
Inferred
2.78
11.31
7.65
0.86
The reporting standard for the Mineral Resource Estimate uses the terminology, definitions and guidelines given in the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Mineral Reserves (May 2014) as required by NI 43-101.
Reported Mineral Resources are constrained to a pit-shell generated in Whittle software above a cut-off grade of 2.78 % Cg.
The estimation of Mineral Resources was completed through a block model approach using interpreted geology wireframes, composites from drill core assays, and grade interpolation via Ordinary Kriging.
Numbers may not add up due to rounding.
The effective date of this Mineral Resource estimate is April 10, 2025.
The qualified person knows of no environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other relevant factors that may materially affect the Mineral Resource Estimate in this report.
Mineral Resources are not Mineral Reserves and have not demonstrated economic viability.
Collected samples were sent to SRC Geoanalytical Laboratories in Saskatoon, Saskatchewan, an independent laboratory accredited under ISO/IEC 17025:2017, for preparation and ICP-MS multi-element analysis, boron by fusion as well as total graphite content (% Cg) and total sulphur by LECO. Samples were collected in accordance with industry-standard quality assurance / quality control practices and included the insertion of blanks, standard reference materials, and repeats into the sample stream at regular intervals. Samples were also collected for in-field and lab density measurements at regular intervals and through the mineralized zones.
An independent technical report in respect of the mineral resource estimate will be prepared and filed on SEDAR+ (www.sedarplus.ca) and on the Company's website (www.abasca.ca) within 45 days of this press release.
For more information on the Loki Flake Graphite Deposit and an overview of the Key Lake South Project, please visit the Company's website at https://www.abasca.ca.
Figure 1: Map of the Key Lake South Project area showing the location of the Loki Flake Graphite Zone and other exploration target areas.
Figure 2: Map of the area around the Loki Flake Graphite Deposit showing the surface projection of the inferred resource and the 2016 and 2024 drilling. Drillholes KLS-24-042 and KLS-046 intersected a new prospective graphite zone northeast of the Loki Flake Graphite Deposit.
Figure 3: Oblique view of the Loki Flake Graphite Deposit showing the pit-constrained inferred resource and the drillholes used to define the resource.
Qualified Person
The technical information in this news release has been reviewed and approved by Brian McEwan, P.Geo, a Qualified Person as set out in National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Mr. McEwan is the Vice-President of Exploration at Abasca. The mineral resource estimate presented in this news release was completed by Matthew Batty, P.Geo, a Qualified Person as defined under NI 43-101. Mr. Batty is a Geostatistician and the owner of Understood Mineral Resources Ltd.
About Abasca Resources Inc.
Abasca is a mineral exploration company that is primarily engaged in the acquisition and evaluation of mineral exploration properties. The Company owns the Key Lake South Project (KLS), a 23,977-hectare exploration project located in the Athabasca Basin Region in northern Saskatchewan, approximately 15 km south of the former Key Lake mine and current Key Lake mill. The project possesses geological similarities and along strike of past Key Lake Mine with prospective conductors of over 50 km for potential uranium mineralization. KLS is also host to the Loki Flake Graphite Deposit.
On behalf of Abasca Resources Inc.
Dawn Zhou, M.Sc, CPA President, CEO and Director
For more information visit the Company's website at https://www.abasca.ca or contact:
Abasca Resources Inc. Email: info@abasca.ca Telephone: +1 (306) 933 4261
Neither the TSX Venture Exchange Inc. nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this press release.
Forward-Looking Statements
This press release may contain certain forward-looking information and statements ("forward-looking information") within the meaning of applicable Canadian securities legislation that are not based on historical fact, including without limitation statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions. Forward-looking information reflects management's current beliefs with respect to future events and is based on information currently available to management. Forward-looking information contained in this press release includes, but is not limited to, statements relating to the maiden mineral resource estimate; the potential for resource expansion and upgrading; the positioning of Abasca to potentially play a significant role in contributing to North America's secure supply chain of graphite; the derisking of the Loki Deposit for development and the creation of shareholder value; the continued delineation of the deposit; and the movement of the Project into next stages. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. Abasca undertakes no obligation to comment on analyses, expectations, or statements made by third-parties in respect of Abasca, its securities, or financial or operating results (as applicable). Although Abasca believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors, and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks, uncertainties and factors, certain of which are beyond Abasca's control, including the impact of general business and economic conditions; risks related the exploration activities to be conducted on KLS, including risks related to government and environmental regulation; actual results of exploration activities; industry conditions, including uranium and graphite price fluctuations, interest and exchange rate fluctuations; the influence of macroeconomic developments; business opportunities that become available or are pursued; title, permit or license disputes related to KLS; litigation; fluctuations in interest rates; and other factors. In addition, the forward-looking information is based on several assumptions which may prove to be incorrect, including, but not limited to, assumptions about the availability of qualified employees and contractors for the Company's operations and the availability of equipment. The forward-looking information contained in this press release are expressly qualified by this cautionary statement and are made as of the date hereof. Abasca disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
