Northern Graphite (CVE: NGC) of Ottawa has taken a closer look and updated some parameters for its Bissett Creek graphite project between Ottawa and North Bay. The updates were done by G Mining Services.
The review contains an improved net present value and internal rate of return numbers. The after tax NPV at an 8% discount is now $198.2 million, up from $150 million in the preliminary economic assessment. The after tax IRR is 25.0%, up from 22.0%. Using a graphite price of $2,276 per tonne, rather than $1,890/tonne, certainly helped improve the economics.
Northern Graphite now says the project has a pre-production capex of $106.5 million, and $47.5 million for a proposed expansion. Sustaining capital requirements are $61.5 million. Construction will be done in two phases - the first at a rate of 20,000 t/y and the second at 38,400 t/y.
SGS Lakefield is currently confirming recoveries, concentrates and flake size yields. Once these results are obtained, Northern Graphite will consider whether it wants to file a new 43-101 report for Bissett Creek.
Meanwhile, the company is updating the phase one feasibility study. Commercial production could start in 2020.
This article originally appeared in the Canadian Mining Journal.