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Focus Graphite and SOQUEM Announce Positive PEA for the Kwyjibo REE Project in Québec
KINGSTON, Ontario, June 28, 2018 (GLOBE NEWSWIRE) -- Focus Graphite Inc. (“Focus”) (TSX-V:FMS) (OTCQX:FCSMF) (FSE:FKC) and partner SOQUEM Inc. ("SOQUEM") are pl
About this update from Focus Graphite Inc.
[{"type":"text","content":" KINGSTON, Ontario, June 28, 2018 (GLOBE NEWSWIRE) -- Focus Graphite Inc. (“Focus”) (TSX-V:FMS) (OTCQX:FCSMF) (FSE:FKC) and partner SOQUEM Inc. (\"SOQUEM\") are pleased to announce the results of the Preliminary Economic Assessment (“PEA”) for the Kwyjibo Rare Earth Element (“REE”) Project (“Kwyjibo”), based on a maiden resource estimate and preliminary metallurgical testwork. The Kwyjibo Project is located 125 km northeast of the port city of Sept-Iles, Québec, Canada. The Kwyjibo project is a Joint Venture between Focus (50%) and SOQUEM Inc. (50%) with SOQUEM acting as Operator. Highlights1: The combined resource for the Josette Northeast and Josette Southwest zones is 6.92 Mt at 2.72% TREO (Total Rare Earth Oxides) in the Measured and Indicated categories2 and 1.33 Mt at 3.64% TREO in the Inferred category2 The PEA focuses exclusively on the Josette Northeast Zone with an underground mine and on-site concentrator and a hydrometallurgical processing facility located off-site 10-year life of mine (LOM) with an average annual ore production of 387,000 t at 3.29% TREO. Total LOM production is 3.55 Mt at 3.29% TREO The REE are concentrated in three minerals: apatite, britholite and allanite Average annual concentrate production of 174,000 t grading 7.0% TREO Further hydrometallurgical processing leading to an annual production of 9,500 t of TREO Pre-tax internal rate of return (“IRR”) of 21.4% (18.0% after tax) and pre-tax net present value (“NPV”) of CAD 572.9 million (CAD 380.7 million after tax) in the base case scenario using a Basket price of CAD 42.81 per kg of TREO Capex of CAD 723.6 million with a payback period of 3.4 years Overall TREO recovery of 75% The recovery of the REE, especially for Nd and the heavy rare earths (Gd, Dy, Tb, Ho, Er and Y), with a conventional solvent-extraction hydrometallurgical process is efficient not only in terms of extraction but also separation The Kwyjibo REE deposit remains open at depth with the potential to increase mine life through additional drilling and technical studies 1 The Preliminary Economic Assessment summarized in this news release is only intended to provide an initial, high-level review of the project. The PEA mine plan and economic model include the use of Mineral Resources which are considered too speculative geologically to have the economic considerations applied to th...