Business
SRG Mining Announces Positive Feasibility Study Results for Its Lola Graphite Project - Pre-Tax NPV of USD 277M and IRR of 28% Over a 29-Year Mine Life
MONTREAL, July 4, 2019 /CNW Telbec/ - SRG Mining Inc. (TSXV: SRG) ("SRG" or the "Company") is pleased to announce the results of its Feasibility Study ("FS") fo
About this update from Falcon Energy Materials Plc
[{"type":"text","content":" MONTREAL, July 4, 2019 /CNW Telbec/ - SRG Mining Inc. (TSXV: SRG) (\"SRG\" or the \"Company\") is pleased to announce the results of its Feasibility Study (\"FS\") for the development of the Lola graphite project in the Republic of Guinea, West Africa. The FS was prepared by Montreal-based DRA/Met-Chem, a division of DRA Americas Inc. (\"DRA/Met-Chem\"). All dollar figures are in United States dollars. The FS was officially started in September 2018 and has been produced with the input of numerous engineering and consulting firms, notably DRA/Met-Chem, Epoch, BBA, Sahara Natural Resources, MDEng, SGS Canada, CCIC, and Jenike & Johanson. Included in the FS is an updated resource calculation, which follows the Company's 2018 drilling campaign, bringing the total resource to 46.0 million tonnes (\"Mt\") of measured and indicated resources grading 4.09% graphitic carbon (\"Cg\"). The following lists the highlights of the Feasibility Study: Average annual production of 54,600 tonnes of graphite flakes over a 29-year mine life Proven & probable reserves of 42.0Mt @ 4.17% Cg Capital costs of $123 million (\"M\") including a power plant of $5.8M, concentrate transport equipment of $3.6M, and contingency of $12M Added flexibility of the plant to process soft saprolite and fresh rock, provides optionality and the ability to expand the production profile Average operational costs of $470/tonne (\"t\") and $38/t of transport. For the first 16 years of production, the average operational costs are $447/t. Pre-tax NPV(8%) of $277M and internal rate of return (\"IRR\") of 28% Post-tax NPV(8%) of $159M and IRR of 21% Average grade of graphite flakes over 95% A low strip ratio of 0.69 This video is a flyby simulation of the project layout. Lola Project Video - YouTubeTap to unmuteLola Project VideoSRG MiningSRG MiningNo subscribersWatch on \"These results are the culmination of many months of studies to de-risk the project and add to its robustness\" said Ugo Landry-Tolszczuk, President and Chief Operating Officer of SRG. \"The economic highlights present a highly profitable business using reasonable estimates for graphite selling price. Basic engineering will focus on improvements in the front-end of the plant, tailings management, and reducing the mining footprint.\" A technical report detailing the completed feasibilit...