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

Client
Northern Graphite.

Project Description
Northern Graphite has updated the preliminary economic assessment (PEA) on its 100%-owned Bissett Creek graphite project to assess the economics of building a process plant with twice the capacity contemplated in the company’s feasibility study.

The updated PEA indicates that the Bissett Creek project has very attractive economics even at or below current depressed graphite price levels.

The PEA production plan is based on 24-million tonnes grading 2.2% graphitic carbon, as estimated in the feasibility study being processed first, followed by the processing of 16.1-million tonnes of measured and indicated resources grading 1.26% graphitic carbon from a low-grade stockpile.

The PEA envisages an operation that will produce an average of about 44 200 t/y of graphite concentrate over the first ten full years of operation.

Almost 90% of production will consist of large and extra-large flake and battery-grade graphite, which is by far the highest ratio in the industry.

There are also 27.3-million tonnes of measured and indicated resources and 24-million tonnes of inferred resources that are not part of the PEA mine plan.

The deposit has not yet been closed off by drilling, all of which indicates that further production expansions are possible.

Net Present Value/Internal Rate of Return
The pretax internal rate of return is 31.7% (26.7% after tax) and the pretax net present value is $264.7-million ($178.9-million after tax) in the base case, which is based on an 8% discount rate and a weighted average price of $1 800/t of concentrate, which reflects current market conditions.

Value
Development capital costs in the updated PEA have been estimated at $134.1-million, including a 10% contingency.

Duration
Not stated.

Latest Developments
None stated.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

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