Canadian Mining Journal

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GRAPHITE: Robust PEA for Nouveau Monde’s Tony claim block West zone



QUEBEC – Nouveau Monde Mining Enterprises of Gatineau, QC, continues to test its Matawinie graphite property 130 km north of Montreal. The latest development is the receipt of a “robust” preliminary economic assessment for the West zone of the Tony claim block at the property.

The PEA outlines a project that will generate $2.43 billion before taxes over a 25.7 year mine life. The pre-tax net present value is pegged at $403.7 million (8% discount) and the internal rate of return will be 31.2%. After taxes, the NPV is estimated at $237.0 million and the IRR at 24.7%. Initial capital expenditures, including contingency, will be $144.5 million. Operating expenses are projected to be $660 per tonne. A concentrate price of US$1,492 per tonne was sued in the estimates.

An open pit will be developed based on 160.0 million indicated tonnes at 4.38% Cg and 14.8 million inferred tonnes at 4.88% Cg (in pit). A contractor is to be hired to do the mining. Metallurgical testing produced a 97.1% Cg concentrate at a recovery rate of more than 89.5%, and the average annual production would be almost 50,000 tonnes of concentrate.

The mine site plan can be examined at http://NouveauMonde.ca/wp-content/uploads/PR_Mine_Site_Plan_20160622.pdf.