I posted this on the TCC board a few days back, but per a request I will post here as well.

May 2014. This very well could one of the most important months in the last couple of years for Zenyatta. Processing and purification of the two 5 tonne bulk samples is most likely complete and product is in the end user's hands. It should be a back and forth process with end users, tweaking the graphite properties along the way, but I would place my bets on feedback already being received by the Company. NDA's will most likely prevent the Company from releasing this feedback to the general public as this is a very competitive and somewhat secretive industry.

The PEA is right around the corner (June/July is the word on the street). Retaining RPA for the PEA was the right thing to do as the majority of the work is already complete (43-101 RE). If you notice from this technical report, there are several sections left black towards the bottom which will be utilized for the PEA (economic analysis, market studies, costs, recoveries, etc.). The two bulk samples are important not only for producing samples for end users, but also for providing information necessary for the PEA. From these, the Company should be able to develop a process flow sheet, improve upon processing methods, as well as gain a better idea of related costs and recovery rates. These new insights may change the assumptions used in the Whittle model, thereby changing the RE. We very well may see an updated resource estimate in the PEA (and there's only one direction it is going ^ ). Also, don't forget that Roskill was hired by Zenyatta to perform a market analysis of the graphite industry. I presume this information will be utilized in the PEA.

Lastly and most importantly, we will finally be able to put numbers behind Zenyatta. Capital costs, productions costs, NPV, IRR, payback period, mine life, sales price, purity, recovery, stripping ratio, etc. This is what we have been waiting for. This is what institutions have been waiting for. This is what end users have been waiting for. Nuff said.

For an example of a PEA done by RPA, please see the link below for Focus Lac Knife project. This is probably the best example out there of what we can anticipate seeing for Zenyatta's PEA (with the exception of much higher numbers :) )

http://www.focusgraphite.com/wp-content/uploads/2014/01/RPA-Focus-Lac-Knife-NI-43-101-Tech-Report-FINAL-Oct-30-2012_opt.pdf

Next we come to AE and company's all important trip to Japan in May. This is hugeeee IMHO. Japan and Asia is where we need to be. Just take a look at the lists below. The first is a list of the top 10 Li-ion battery producers in the world. Notice that 5 out of the 10 are from Japan? The second is a list of major players in the graphite industry headquartered in Japan. Any bets on which of these companies AE is meeting with?

Top 10 Li-Ion Battery Producers:
1. LG Chem – South Korea
2. JCI - USA
3. AESC - Japan
4. Panasonic - Japan
5. Samsung SDI – South Korea
6. SK Continental E-Motion – South Korea / Germany
7. Hitachi - Japan
8. Toshiba – Japan
9. GS Yuasa – Japan
10. BYD – China

Major Players in the Graphite industry – based in Japan:
Toyo Tanso Co., Ltd.
SEC Carbon, Ltd.
Ibiden Co., Ltd
Nippon Carbon Co., Ltd.
Nippon Graphite Industries, Ltd.
Hitachi Chemical Co., Ltd

I cannot stress how important the hirings of Dr. Chahar and Mr. Yamashita were to this Company and to me as an investor. Take a look at the 300 other graphite plays and let me know if you can find anyone of this caliber joining their teams. They are the real deal. Take a read from the NR again and read between the lines.

Mr. Tadashi Yamashita is a chemical engineer with more than 35 years of carbon research and development experience with Mitsui Chemicals and ConocoPhillips based in Tokyo, Japan and New York, USA.

Dr. Chahar stated, “I am delighted to have Mr. Yamashita join the ZEN team. We worked closely together at ConocoPhillips to successfully bring the CPREME® Graphite Materials to customers globally. Tadashi possesses a strong technology background and a broad business network, especially in Japanese industrial materials. He will be invaluable to Zenyatta as we advance our ultra-high purity carbon product for potential use in high-tech applications and will be instrumental during ongoing discussions with end users in Asia. Mr. Yamashita and I will continue discussions with interested parties and develop new relationships with downstream companies to create awareness of the ultra-high purity material while the graphite deposit is being developed.”

Mr. Yamashita commented, “Asia and specifically Japanese companies are keenly interested in high quality and secure supplies of natural resources sourced from stable political jurisdictions like Canada. I recognize that Zenyatta has discovered a special and large resource with excellent potential for high value carbon applications. I am very excited to be working with Bharat again and to be part of the ZEN team to help bring this unique graphite product to the Asian market.”

So who is Mitsui Chemicals you may ask? Well, Mitsui Chemicals is a Japanese Chemicals company listed on the Nikkei. It is a part of the Mitsui conglomerate. The company has a turnover of around 15 billion USD and has business interests in Japan, Europe, China, Southeast Asia and the USA. Vegas odds on Mitsui Chemicals having already received a sample from Zenyatta?

Now my favorite line from that NR, "…and will be instrumental during ongoing discussions with end users in Asia." No words necessary here.

Zenyatta may be very quiet at the moment but that does not mean exciting things are not happening behind the scenes. I for one trust management's approach as irritating as it may be. My bets have been placed and looking forward to a good summer.

GLTA

TaKeNoTeS