- Metals Australia unveils strong economics at Canadian graphite project
- Mine and plant studies provide positive results
- Project will now advance to final feasibility study
Metals Australia (ASX:MLS) is set to advance its Lac Carheil graphite project in Quebec, Canada to final feasibility after receiving positive pre-feasibility study (PFS) outcomes.
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MLS and its wholly owned Canadian Subsidiary, Northern Resources, are proposing to develop an open cut mine and flake graphite concentrate plant, with the PFS adding to the separate preliminary economic assessment (PEA) for a high purity downstream graphite battery anode material refinery.
Critical path metallurgical test-work for feasibility design and site environmental survey programs are now underway for the Environmental and Social Impact Assessment (ESIA).
The PFS identified the project is capable of an annual average production of 101,241 tonnes of flake graphite concentrates products, grading 95.4% graphitic carbon (Cg) over an initial project life of 24-years.
The project is forecast to deliver a pre-tax net present value (NPV) of $790.8 million with a significant after tax NPV-8 of $572 million.
Lac Carheil is estimated to contain 21.51 million tonnes grading 11.14% Cg for 2.40 million tonnes of contained graphite. The ore reserve represents an 86% conversion of indicated resource into reserves.
The project includes total mineral resources of 50 Mt at 10.2 % Cg for 5.1 Mt of contained graphite (Indicated of 24.8 Mt at 11.3% Cg for 2.8 Mt and Inferred of 25.2 Mt at 9.1% Cg for 2.3 Mt.)
The upstream project consists of an open cut mine and a flake graphite concentrate plant designed to produce high purity natural flake graphite concentrate at 95.4% TGC.
Total CAPEX for the project is estimated at US$346.3 million, which includes US$40 million in contingency.
The total is made up of US$273.1 million for the concentrate plant and related infrastructure (including site power line), mining capital of US$33.9 million (including site access road), tailings co-disposal facility (TCDF) of (US$17.3 million) and water management structures and treatment plant of (US$22 million) make up the balance. Project payback is 4.2 years.
Lac Carheil is eligible for the Clean Technology Manufacturing Investment Tax Credits (CTM ITC) of up to 30% returned as cash rebates on eligible capital investment. The credits are forecast at US$96.7 million and could reduce the effective CAPEX for the project to US$249.6 million.
The project will employ an initial work force of 143 personnel for operation, scheduled for 2030. The peak workforce is projected in Year 15 at 183 personnel.
MLS is steady at 2.0¢. Mkt cap $14.63M.
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