QUEBEC – Montreal’s Mason Graphite says the preliminary economic assessment is “robust” for its Lac Guéret graphite project near Baie Comeau. The PEA was prepared by Met-Chem Canada and SGS Minerals Services.
Initial direct capital costs will be $89.9 million to develop the project. It has a pre-tax net present value (8% discount) of $364 million and a 33.7% pre-tax internal rate of return. Payback of the original capital investment will occur in 2.5 years.
The study suggests the project will produce 50,000 t/y of salable graphite, that will generate $76.2 million in annual revenues. Graphite recovery will be above 96%, and finished product purity will be up to 96.4% Cgr (graphitic carbon). Measured and indicated resources total 7.3 million tonnes at 20.24% Cgr. The inferred resource is 2.8 million tonnes at 17.29% Cgr. Production costs are expected to be $390 per tonne of finished product, and the average realized price will be $1,525 per tonne.
Details are available at MasonGraphite.com.