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Northern Graphite Completes Preliminary Economic Assessment on Restart of Namibian Operations
Okanjande/Okorusu on Track for Production by Mid 2023 Ottawa, Ontario--(Newsfile Corp. - July...
About this update from Northern Graphite Corporation
[{"type":"text","content":"Northern Graphite Completes Preliminary Economic Assessment on Restart of Namibian OperationsOkanjande/Okorusu on Track for Production by Mid 2023Ottawa, Ontario--(Newsfile Corp. - July 11, 2022) - Northern Graphite Corporation (TSXV: NGC) (OTCQB: NGPHF) (FSE: ONG) (XSTU: ONG) (the \"Company\" or \"Northern\") is pleased to announce the completion of a Preliminary Economic Assessment (\"PEA\") for the restart of its Okanjande/Okorusu graphite operation in Namibia. The report, which will be filed on Sedar shortly, concludes that Northern can bring the project back into production by mid 2023 at an average production level of almost 31,000 tonnes per annum of graphite concentrate with a C1 production cost of US$775/tonne. The capital required to initiate production is US$15.1M which includes the installation of a new, two-stage grinding circuit, additional regrind equipment in the flotation plant, and a new tailings storage facility.The PEA indicates very robust project economics as reflected in Table 1, with a Post Tax IRR of 62%, a Post Tax NPV of US$65M, and a payback of under 2 years based on a 10 year project life and a weighted average graphite price of US$1,500/tonne. The graphite price is based on a concentrate containing11% +50 mesh XL flake, 48% +80 mesh large flake, 24% +100 mesh medium flake and 16% +150 mesh small flake, and having an average carbon content of 96%.Project KPIsUOMValueMeasured and Indicated Resource - WeatheredMt, %TGC5.9Mt @ 4.21% TGCMeasured and Indicated Resource - FreshMt, %TGC1.2Mt @ 4.35% TGCOre processedtonnes6,096,650Average grade%5.3Average recovery%92Average annual concentrate productiontonnes30,760Waste to ore ratioNA0.7Post Tax NPV @8% CoCUS$65,058,495Post Tax IRR%62%Post Tax and Royalty Undiscounted CashflowUS$120,732,276Post Tax Payback Periodyears2Pre Tax NPV @8% CoCUS$107,261,317Pre Tax IRR%82%Pre Tax and Royalty Undiscounted CashflowUS$194,306,354Pre Tax Payback Periodyears2Namibian/US$ exchange rate NA15:1 Table 1: Key Project Economic HighlightsThe level of accuracy for some of the key inputs are generally of a higher level than normally associated with a PEA as only \"Measured and Indicated\" resources are included and major capital and operating cost items such as large equipment prices and mining and trucking costs are based on fixed prices obtained in early June 2022.The aut...