USA Graphite Inc. to Acquire the Blue Wing Mountain Graphite Property

2012-11-27

Nov. 26, 2012 - USA GRAPHITE INC. is pleased to announce it has acquired a 100% stake in the Blue Wing Mountain Graphite property, a strategic Project located in Pershing County, Nevada. The property consists of 96 lode claims covering an area of approximately 1985 acres. Road access to the project is excellent and is situated directly between I-80 East and US-395 North.
The financial terms of the transaction consist of approximately $3,000,000 in cash and stock and a $1,000,000 work program commitment. As well, to pay a production Net Smelter Royalty (the "NSR") to NV Minerals equal to two percent (2%) of the net smelter returns, per the terms and conditions of the Option Agreement. The Company shall have a one-time right to purchase fifty percent (50%) of the NSR in the Property for five hundred thousand dollars ($500,000).
Initial prospecting and geological analysis on the claims confirmed the presence of flake graphite at surface. The dominant rock type on the property is hornfels, which are dark grey to black in color with pockets of flaked graphite throughout the known outcrops. Extensive sections of the Blue Wing Mountains Graphite Project contain abundant chiastolite (andalusite) crystals in a matrix of graphite-rich, pelitic pyroxene-hornfels.
Two different hornfels units have been mapped based on the amount of the chiastolite content. These two units comprise 90% of the Blue Wing Mountains and both units are rich in high carbon content flake graphite. The chiastolite at the Blue Wing Mountains Graphite Project occurs in a black, graphite-rich politic pyroxene-hornfels. The presence of carbon in the chiastolite and the high graphite content of the hornfels suggest that the Blue Wing Mountains were formed by a granite intrusion into an oil-rich shale.
Pershing County is well known for its mineralogical potential with mines such as the Florida Canyon Mine, Colado Mine and Empire mine, all located within the region.
Mr. Wayne Y. Yamamoto, President and CEO of USA Graphite, said, "We are pleased with our initial acquisition in the graphite space. Our geological efforts to date are very encouraging and confirm the presence of flake graphite on our property. The size of the property and the quality of graphite on the property lead us to believe that the Blue Wing Graphite property could host a multi-million ton graphite mine."