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Northern Graphite Corp.
Summary
| Project: | Bissett Creek | |
|---|---|---|
| Deposit: | Bissett Creek | |
| Location: | Canada | |
| Commodities: | Graphite | |
| Date: | 12/12/2018 | |
| Report Code: | NI43-101 | |
| Report Type: | PEA | |
| Project Stage: | Pursuing Feasibility Study | |
| Report details: | 12-12-2018: Northern Graphite Corp. announces a PEA report for its Bissett Creek deposit at the Bissett Creek project. Economic review results incl. Post-tax NPV of CA $198.2M (8%), IRR of 25.0%. Ottawa, Ontario--(Newsfile Corp. - December 12, 2018) - Nor | |
| Resources: | (not mentioned in this report) | |
| CP/QP: | [Overall Report]: Greg Bowes (Not stated) | |
| ABSTRACT: | Ottawa, Ontario--(Newsfile Corp. - December 12, 2018) - NorthernGraphite Corporation (TSXV: NGC) (OTCQX: NGPHF) (the "Company") announces that G Mining Services Inc. has completed a review of the economics of the Company's Bissett Creek graphite project (the "Project" or "Bissett Creek") in order to evaluate the effect of some modifications to the flow sheet as well as changes in commodity prices, exchange rates, equipment and labor costs, and other project inputs. The review indicates an improvement in the Project's estimated net present value ("NPV") and internal rate of return ("IRR") as cost inflation has been offset by very favorable movements in the CDN/US dollar exchange rate and savings from some simplification of the flowsheet. The Company intends to develop Bissett Creek in two phases. Phase 1 will consist of building a mine and plant capable of producing over 20,000 tonnes of graphite concentrate per annum A full Feasibility Study ("FS") was filed with respect to Phase 1 in 2012 and it was updated in 2013. Phase 2 involves doubling the plant throughput after three years of operation and increasing average annual production to 38,400 tonnes over the first 15 years of operation in order to meet the expected future growth in graphite demand. A Preliminary Economic Assessment ("PEA") encompassing both Phase 1 and Phase 2 was filed in late 2013 and is the current NI 43-101 report on the Project. It included an initial capital cost estimate of CDN$101.6 million for Phase 1 (US$81.2 million at current exchange rates). The recent review indicates that the capital cost of Phase 1 has increased by approximately five per cent. While the cost of some equipment has declined and costs have been reduced through flow sheet modifications, other items such as the power plant have increased and civil, mechanical and electrical costs have all increased due to inflation. Operating costs are expected to be up to 20 per cent higher than the original estimate. A comprehensive metallurgical test program is currently underway at SGS Lakefield to confirm graphite recoveries, concentrate purity and flake size yield under the new flow sheet and to bring testing up to feasibility level standards. Once these results are available, the Company will determine if it would be necessary or beneficial to prepare and file a new NI 43-101 report. | |
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