VANCOUVER, Sept. 1, 2011 /CNW/ - 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
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:
Deep Bay: Drilling and Trenching Highlights
Hole / Trench
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 several 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 regarding the
criticality of 41 different materials to the European economy included
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."
On Behalf of the Board of Directors
ZIMTU CAPITAL CORP.
President & Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
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.
SOURCE Zimtu Capital Corp.
For further information:
please visit the corporate website at http://www.zimtu.com or contact:
Toll Free: 1.877.377.6222