Name and Location
Bissett Creek graphite project, Ontario, Canada.

Client
Northern Graphite.

Project Description
The proposed development of the Bissett Creek graphite deposit includes the construction of an openpit mine and a 2 500 t/d processing plant.

The plant will consist of conventional crushing, grinding and flotation circuits, followed by concentrate drying and screening, and is based on proven methods using equipment that is widely used in the mineral industry.

Northern Graphite also plans to build a natural gas pipeline to the site from the main Trans Canada line, about 15 km away, to fuel five 1 MW generators that will produce electrical power. Waste heat from the generators will be used to dry the concentrate, resulting in a low overall energy cost of $0.079/ kWh.

Infrastructure includes upgrading the last 5 km of access road, site preparation and tailings facilities. About 97% of the tailings will be nonacid generating.

Over the first five years of operation, 4.2-million tonnes of ore will be processed at an average head grade of 2.22% graphitic carbon to produce an average of 18 600 t of graphite concentrate at 94.5% graphitic carbon a year.

An estimated 80% of production will be +80 mesh large flake and 50% will be XL (+50 mesh) and XXL (+32 mesh) flake.

Value
Capital costs are estimated at $102.9 million, including a $9.4 million contingency, but excluding any financial assurance relating to reclamation obligations.

Duration
Not stated.

Latest Developments
The Bissett Creek project has been given the go-ahead after the Ministry of Northern Development and Mines approved the project’s mine closure plan and granted a mining lease.

After waiting for ten months for the approval of the mine closure plan and two years for the mining lease for the eastern Ontario mine, the company, subject to the availability of financing, could immediately kick-start its construction activities.

Owing to the approval of the mine closure plan, which outlines the current baseline environmental conditions, potential effects on the environment, together with the appropriate mitigation measures and rehabilitation plan, besides others, Northern Graphite could focus on securing other permits, including those related to air, noise, water and species at risk.

Meanwhile, various aspects of the operating plan and bankable feasibility study are being revised to incorporate a new, larger resource and lower graphite prices, as well as several modifications to the original capital and operating cost assumptions.

The revised economics are expected to be completed within the next few weeks.
Northern Graphite has said it will replace contract mining with an owner mining structure, which will reduce operating costs by more than $100/t of concentrate, while injecting an additional $7-million in capital for mining equipment.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
None stated.

Contact Details for Project Information
Northern Graphite, tel +1 613 241 9959, fax +1 613 241 6005 or email gbowes@northerngraphite.com.