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SRG Mining Announces Positive Economic Results of Updated Feasibility Study for Lola Graphite Project
SRG Announces Positive Economic Results of Updated Feasibility Study for Lola Graphite Project Annual Production Doubled to 94,000 tpa Graphite in Concentrate M
About this update from Falcon Energy Materials Plc
[{"type":"text","content":" SRG Announces Positive Economic Results of Updated Feasibility Study for Lola Graphite Project Annual Production Doubled to 94,000 tpa Graphite in Concentrate Modest Increase in Capital Costs of US$185 Million Compares Favourably to Industry Average Capital Intensity After-Tax NPV8% of US$218 Million and IRR of 25% over 17 years Financing, Offtake and Strategic Partnership Discussions Progressing Montreal, QC - February 27, 2023 - SRG Mining Inc. (TSXV:SRG) (“SRG” or the “Company”) today welcomes the positive results of an independent Updated Feasibility Study (“UFS”) for the high-quality Lola Graphite Project in the Republic of Guinea. The Lola Graphite Project 2023 UFS evaluates a doubling in annual production capacity from the previous 2019 Lola Graphite Project Feasibility Study to an average of 94,000 tonnes of graphite flakes in concentrate per annum (“ktpa”) over its 17-year life of mine. The UFS was prepared by DRA Global Limited (“DRA”). Highlights of the Updated Feasibility Study for the Lola Graphite Project include: After-tax net present value (“NPV”) at a real 8% discount rate of US$218 million. After-tax internal rate of return (IRR) of 25%. After-tax project payback period of 3.2 years. Pre-production capital costs, including contingency, estimated at US$185 million compare favourably to industry standards. Life-of-mine average cash operating costs of US$585 per tonne of concentrate. Life-of-mine average concentrate production doubled to 94ktpa, with an average concentrate grade of 95.4% graphite. The UFS was prepared in compliance with Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101). The UFS is the first phase of the Company’s integrated business model aimed at the creation of a mine-to-market active anode material producer, hosting a large high-purity graphite production mine and concentrator in Africa and a value-added, coated spherical purified graphite (“CSPG”) conversion facility in Europe, North America, Middle East or Africa. The Company anticipates publishing the fully integrated business model in Q2 2023 upon completion of the independent preliminary economic assessment (“PEA”). Dorfner Anzaplan GmbH, a leading consultancy and engineering company for industrial, specialty mineral and metal p...