A preliminary economic assessment (PEA) of the Uatnan mining project has demonstrated attractive economics for a targeted 500 000 t/y of graphite concentrate over a 24-year mine life, making the project in Quebec one of the world’s biggest in development.

This is according to Nouveau Monde Graphite (NMG), which is studying Uatnan in collaboration with TSX-V-listed Mason Graphite. Uatnan covers Mason’s Lac Guéret graphite project.

NMG has revisited Mason’s original project, which planned for production of 51 900 t/y of graphite concentrate, with the concentrator and tailings storage facility located offsite in Baie-Comeau – about 285 km away.

The PEA optimises the mineral resource and aims to expand the original mining project tenfold and the concentrator has been relocated to be near the deposit.

NMG also tailored the design of Lac Guéret to the needs of the battery and electric vehicle (EV) market, orientating production volumes for beneficiation to produce active anode material.

The PEA yielded an aftertax internal rate of return of 25.9% and a net present value, using an 8% discount, of C$2.17-billion.

The project will require an initial capital investment of C$1.42-billion.

NMG founder, president and CEO Eric Desaulniers says the PEA confirms the “tremendous potential” of the Uatnan project.

Initial modelling indicates that Uatnan would create about 300 direct jobs.

Desaulniers notes that while the core of NMG’s technical team is focused on developing and advancing Phase 2 of the Matawine mine and Becancour battery materials projects, Uatnan supports the company’s Phase 3 expansion plans.

“It is our intention to capture as much market share as possible during this historical period of lithium-ion battery manufacturing in North America and Europe.”

NMG chairperson Arne Frandsen adds that Uatnan aligns with the group’s vision of progressive, integrated growth that caters to the market's requirements for high-quality graphite materials, local supplies, ESG-driven development, and large volumes to meet EV production levels.

Considering the significant modifications to Mason’s original project, NMG initiated a name change with the collaboration of the Innu First Nation of Pessamit. The deposit is located on the Nitassinan, the Innu of Pessamit's ancestral territory, in a sector referred to as Ka uatshinakanishkat meaning "where there is Tamarack". Hence, the name Uatnan meaning Tamarack, a conifer prominent in the area, was chosen to identify the property and project. The graphite deposit identified on the property is still referred to as the Lac Guéret deposit.