Northern Resources, a subsidiary of Metals Australia, has published the results of a pre-feasibility study (PFS) on a proposed $553 million open pit mine and graphite flake concentration plant at the Lac Carheil project in Quebec.
According to the company, PFS delivered a pre-tax net present value of approximately $790 million using a discount rate of 8%. The internal rate of return (IRR) was 22% with a payback period of 4.2 years. In addition, Northern Resources said the project is expected to produce more than 100,000 tons of high-purity graphite concentrate annually over its 24-year life.
“The results we have reported from our pre-feasibility study show that the Mine and Flake Graphite Concentrate plant project, located near Vermont, is economically attractive on a standalone basis,” Metals Australia CEO Paul Ferguson said.
The project will create 143 full-time jobs starting in 2030, the company said.
“We see the project as the next fully integrated high-purity graphite project in Canada – and we remain steadfast in our drive to advance development,” concluded Ferguson.
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