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SRG Graphite: Positive Preliminary Economic Assessment and Resource Additions at Lola Pre-tax IRR of 35% over a 16-year mine life
MONTREAL, July 10, 2018 /CNW Telbec/ - SRG Graphite Inc. (TSXV: SRG) ("SRG" or the "Company") is pleased to announce results of a Preliminary Economic Assessmen
About this update from Falcon Energy Materials Plc
[{"type":"text","content":" MONTREAL, July 10, 2018 /CNW Telbec/ - SRG Graphite Inc. (TSXV: SRG) (\"SRG\" or the \"Company\") is pleased to announce results of a Preliminary Economic Assessment study (\"PEA\") for the development of its Lola graphite project in the Republic of Guinea, West Africa. The PEA was prepared by Montréal-based Met-Chem, a division of DRA Americas Inc. (\"Met-Chem/DRA\"). All dollar figures are in United States dollars. Highlights of the Lola graphite PEA: Production of 50,200 tons of graphite concentrate per year over a 16-year mine life Capital costs of $105 million (\"M') including contingency of $15M Operational costs of $372/tonne (\"t\") of concentrate and $130/t of transport Pre-tax NPV(8%) of $204M (post-tax NPV(8%) of $121M) at an average sales price of $1,328/t Finished grade of over 94% and up to 98% over all size fractions Strip ratio of 0.39 \"These results highlight the value of the Lola graphite asset for the company\" said Ugo Landry-Tolszczuk, President and Chief Operating Officer of SRG, \"that said, the team will continue to work on improving the design and economics of the project. During our trade-off assessment work, we have found several key points of improvement to incorporate in the feasibility study. Early works which will contribute to the next stage in the development of the project is underway and we are dedicated to meeting our objectives for the year.\" The PEA follows the Mineral Resource Estimate published on June 18, 2018. A technical report detailing the PEA, and completed in accordance with National Instrument (NI) 43–101 guidelines, will be filed and available on SEDAR within 45 days from June 18, 2018, the release date of the mineral resource update published by the Company. Effective date of the estimate is June 14, 2018. COMMERCIAL SALES, REVENUES & PROJECT ECONOMIC SENSITIVITIES The Lola mine will produce an average of 50,200 tonnes of saleable graphite annually. At an average sale price of $1,328 per tonne, this represents $66.6M annual revenue. Given the volatility of graphite prices in recent years and the bilateral nature of sales contracts a sensitivity analysis of the project economics is presented below in Table 1. Table 1 Project economics sensitivity analysis (pre-tax) Average Sale Price ($/t) 1,195 1,261 13281 ...