PDAC-Zenyatta makes bull run on rare graphite deposit

Sun Mar 3, 2013 7:30pm EST
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* Top performing mining issuer in 2012 on TSX-V

* Company says has rare vein type graphite deposit

* Targets higher value synthetic graphite market

* Resource estimate due in Sept., prefeasibility in 2014

By Julie Gordon

TORONTO, March 3 (Reuters) - Zenyatta Ventures Ltd, the top performing mining issuer on TSX Venture Exchange in 2012, is banking on a rare type of natural graphite that it says can compete on a quality level with synthetic graphite, while costing much cheaper to produce.

The Thunder Bay, Ontario-based company is in the very early stages of developing its Albany project in northern Ontario, a vein-type graphite deposit. Vein graphite, also known as lump graphite, is currently only produced in Sri Lanka.

The unique nature of the project has already captured the market's attention. Zenyatta's stock quintupled in value from 14.5 Canadian cents to 79 Canadian cents in 2012. In that same period, the broader S&P/TSX Venture Composite Index fell more than 17 percent.

Extending its bull run, the stock has nearly tripled in value so far this year to close at C$2.14 on Friday.   Continued...