We first talked about Graphite One (GPH.V) in November when the share price was trading at C$0.13. Since our first blog post the company has made tremendous progress and released an excellent NI43-compliant resource estimate on their 100% owned Graphite Creek project containing almost 165 million tonnes at 4.61%Cg. This is just a first step as the company confirmed an exploration target of 235 – 495 million tonnes.
Graphite One was able to raise C$600,000 at C$0.14 on the back of this resource estimate which is is good as a lot of junior explorers are struggling to survive at this moment.
GPH has a serious advantage over its competitors in the graphite space as they are one of the very few graphite companies in the USA, and are located on the western side of the continent which makes them the preferred supplier for the Asian market as the shipping costs from Alaska to Asia will be much lower than the cost for potential graphite producers in Québec.
Disclosure: The author holds a long position in Graphite One Resources Inc. Please see our disclaimer for current positions.
