ONTARIO – Zenyatta Ventures of Thunder Bay, ON, says the preliminary economic assessment looks good for its Albany hydrothermal graphite project near Hearst. The PEA was prepared by RPA Inc. with milling input from SGS Canada.
Albany will be an open pit mine and 3,000-t/d processing plant with a 22-year life. The deposit is open at depth, with the potential for extending operations by going underground. The project will have an annual output 30,000 tonnes of high purity (>99.9% Cg) graphite. It will produce roughly US$4.8 billion in gross revenue over 22 years and have an after tax average annual cash flow of US$110 million. The base case posits an after tax net present value (10% discount) of US$438 million and an after tax internal rate of return of 24%.
Zenyatta says that hydrothermal graphite deposits, such as Albany, are extremely rare. Such mineralization is very pure and easily upgraded. It could be a low-cost source of high purity graphite without the use of dangerous and environmentally harmful hydrofluoric acid (as in China) or costly thermal upgrading (as in synthetic graphite derived from petroleum coke).
An animated video of the proposed mining project can be found on the Zenyatta website or follow this link.