Pinestar Gold Inc.

Pinestar Gold to acquire Australian graphite projects

Pinestar Gold Inc., the exploration company that has garnered a great deal of attention from its peers for its mineral properties in Chile has recently turned its sights down under, with an option to acquire graphite projects in Australia.

On the strength of the company’s Chilean 2,000- hectare Becker gold and silver property in Chile, Pinestar, led by CEO Jeremy Ford, announced an option to acquire a portfolio of Australian graphite projects on March 1. The package, described by the company as “significant,” is comprised of 11 tenements totalling and area of 533 square kilometres spread amongst four different states in Australia (Western Australia, South Australia, New South Wales and Queensland).

“The tenement package delivers the Company a major new opportunity in the exciting graphite market,” says the company in a press release.

China is currently the dominate graphite producer, making 75 per cent of the world’s graphite production, though quality is declining as surface oxide deposits are depleted resulting in increasing costs as mines go deeper. Supply suffers from the seasonal closure of mines in northern China over winter.

According to Dig Media Inc., “Experts predict that in order to meet growing global demand for graphite, alternative sources of production will need to come online. Demand for graphite has been increasing as advancements are being made in the electric vehicle, consumer electronics, and green technology industries.”

Demand for graphite is also growing as consumers buy more and more products that require lithium-ion batteries such as iPhones, cell phones and MP3 players.

Sources peg the global demand for graphite at 1.2 million tons a year.

In this environment, investors are looking to graphite exploration companies, with Pinestar one of the brightest lights on that horizon.

“Of the 11 tenements subject to the Option, three comprise the Munglinup Project in Western Australia, one comprises the Eyre Point Project in South Australia, five cover various historical showings located in New South Wales, one covers the Furniss East Project in Western Australia, and one covers the Emu Plain project located in Queensland. More details concerning the highlights of the Optioned Properties are set out below,” says the company.

Pinestar is poised strategically as a major producer of graphite in a stable mining environment and a demanding market. Below are specific details of its promising new projects.

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