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Focus Graphite Announces Benchmark Feasibility Study Update for its Lac Knife Graphite Project, Québec
Results position Focus Graphite as a potentially unique North American supplier of high-purity na...
About this update from Focus Graphite Inc.
[{"type":"text","content":"Focus Graphite Announces Benchmark Feasibility Study Update for its Lac Knife Graphite Project, QuébecResults position Focus Graphite as a potentially unique North American supplier of high-purity natural flake graphite concentrates for use in high-performance Li-Ion batteriesKINGSTON, ON / ACCESSWIRE / March 6, 2023 / Focus Graphite Inc. (OTCQX:FCSMF)(FRANKFURT:FKC) (\"Focus\" or the \"Company\") is pleased to announce the results of its Feasibility Study Update (\"FSU\") for the Lac Knife Project (the \"Project\"), its 100% owned, high-grade crystalline flake graphite deposit located about 27 kilometres south-southwest of Fermont in the Côte-Nord administrative region of Québec. The Project is located on the Nitassinan (ancestral lands) of the Innu community of Innu Takuaikan Uashat mak Mani-utenam (ITUM).The FSU was prepared by DRA Global Limited with assistance from various independent technical consultants.The FSU is based on a 27-year mine life and produced a Pre-tax Net Present Value (\"NPV\") of $500.9 million calculated at a discounted cash flow (\"DCF\") rate of 8%. Pre-tax, the financial model has an Internal Rate of Return (\"IRR\") of 28.7% and a capital payback period of 2.8 years.The after-tax financial model has an NPV of $285.7 million calculated at a DCF rate of 8%, and with an IRR of 22.4% and a capital payback of 3.3 years.Results from the FSU indicate that the Project is viable economically with a Base Case scenario that includes a concentrator production line rate of 47,781 tonnes of flake graphite concentrate annually at an average mill feed rate of 365,320 tonnes per year of Mineral Reserves over a 27-year mine life. A concentrator availability of 93% was used for the FSU. The Project's additional Measured, Indicated, and Inferred Resources will continue to be evaluated to develop the mid- and long-term growth profile for the Company.Table 1 - Lac Knife Updated Feasibility Study Financial HighlightsPre-Tax NPV @ 8% discount rate ($M CAD)$500.9After Tax NPV @ 8% discount rate ($M CAD)$285.7Pre-Tax IRR (%)28.70%After Tax IRR (%)22.4%Life of Mine (LOM) (years)27Pre-Tax payback period (years)2.8After Tax payback period (years)3.3Initial Capital Expenditure (Capex) ($M CAD)$236.5Operating Expenses (Opex) (Average over LOM $M CAD)$25.9Average sales price of graphite concentrate 2022 (USD/t)$1,679...