industrial alliance securities: orocan resource corp
DESCRIPTION
Industrial Alliance Securities provided an update on graphite explorer Orocan Resource Corp. in their December 2011 edition of Core Talk.TRANSCRIPT
Company Snapshot
Total Shares Outstanding (M) 16.58* Options & Warrants (M) 3.03 Fully Diluted (M) 19.61 Share Price ($) 0.27 90-Day Avg Volume 14,505 52 Week High – Low ($) 0.39 – 0.12 Fully Diluted Market Cap ($M) 5.30* Cash ($M) 0.6 *I/O post TSX approval of ON & QC property Acquisitions; Currently 14,833,644 outstanding
Management
Chris Bogart President & CEO; Director Antoine Fournier Chief Geologist Michael Philpot Director Alan Hitchborn Director Terese J. Gieselman CFO
CORE TALK OROCAN RESOURCES CORP. (TSX-V: OR)
December 2, 2011
Orocan Resources Corp., an exploration stage company, engages in the acquisition, exploration, and development of graphite properties in Canada. Its properties include: The Black Donald & Little Bryan properties, Ontario as well as the Carheil & River in Quebec. The company is based in Vancouver, Canada with the exploration office based in Val d’Or, Quebec.
Stockcharts.com
Recent Development – December 1, 2011
OROCAN SIGNS AGREEMENT FOR GRAPHITE PROPERTIES IN QUEBEC
“"We are extremely pleased to have strategically consolidated one of the most important graphite portfolios within Quebec. [..]These Quebec assets, coupled with our recently acquired Ontario properties, positions Orocan to be the premier pure-play graphite
exploration company in North America." - Chris Bogart, President & CEO
OR announced it has signed an option agreement to acquire a 100% interest in nine graphite properties in Quebec, Canada. These properties have been acquired by a group of vendors led by the Quebec Graphite Consortium (QGC). SUMMARY There are three major graphite districts in Quebec; Wakefield, North Shore and New Quebec with notable deposits such as Lac des Iles (Timcal) and Lac Knife (Focus Metals). These nine properties are all located within these districts and centered on the metasedimentary belts of the Grenville Province. These are known marble/gneiss lithologies considered essential to host graphite deposit and having been metamorphosed to sufficiently high grade to produce the larger graphite flakes.
Orocan’s Property Portfolio
Source: Company Website
NEAR TERM STRATEGY
Aggressive exploration campaign with state-of-the-art airborne geophysical surveys;
Enhance its graphite portfolio
through acquisitions of additional properties that meet its geologic criteria for the potential of a high quality flake graphite deposit within known graphite districts.
OROCAN RESOURCES CORP. DECEMBER 2, 2011
2 of 2
QUEBEC PROPERTIES OVERVIEW
New Quebec District
Carheil:
High grade schist/marble lithologies favorable for large flakes; Proximal to Lac Knife graphite deposit; Easy access; Presence of massive (>30%) graphite boulders and graphite
seams in the rocks.
Sandy Lake
Similar geology to Lac Knife; Large claim block, regional targets; Up to 12.44% Cg in lenses.
Sandy Lake NE
Similar geology to Lac Knife; Up to 30.46% Cg in lenses.
Historical Drilling Intercepts
Hole # Length (ft.) Grade (%Cg)
3 32.00 2.25
including 3.60 5.00
4 28.20 2.36
8 10.70 5.80
including 10.50 3.06
9 17.50 3.33
including 7.60 2.77
10 55.20 3.77
12 40.00 2.67 Source: Company Website
2011 Exploration Program
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7
Airborne EM Survey
(5,000 line km's @ 150m
spacing)
Ground EM-Detailed ground
geophysics
mapping, Sampling, Trenching over EM Targets
1st Phase Metallurgical
Tests on Graphitic Material
Evaluate exploration data to delineate &
prioritize targets for Phase 1 Drill
Program
5,000m of DDH
Drilling to test 8-10 priority targets
Evaluate drill results to
determine to prioritize targets
for rapid development
Source: Company Website
Source: Company Website
North Shore District
River
High grade schist/marble lithologies favorable for large flakes; Disseminated graphite similar to Bissett Creek type; Large claim block, regional targets; Poorly explored; Large assaying between 0.1 to 10% graphite.
Wakefield District
Preston
High grade schist/marble lithologies favorable for large flakes; Prospected targets with potential for high-grade; Well circumscribed target with high grade; Underexplored.
Notre Dame
Excellent access and infrastructure; Largest claim block available in proximal location; 10% Cg from historical sampling.
ONTARIO PROPERTY OVERVIEW
Black Donald Property – 100% Interest
Surrounding the past producing Black Donald Mine; Black Donald Graphite Mine; Reported historic ore grades of up to 80% Cg; Average reported grade was 25-30% Cg during last 10 years of mine life; Responsible for 94% of the total value of Ontario graphite production