ONTARIO – Northern Graphite Corp. of Ottawa says the latest drill program at its Bissett graphite project 100 km east of North Bay has successfully upgraded a significant portion of the inferred resource to the measured and indicated categories.
Measured and indicated resources are now estimated at 69.8 million tonnes grading 1.74% Cg (graphitic carbon) based on a 1.02% Cg cut-off grade compared to the previous estimate of 26 million tonnes grading 1.81% Cg at a cut-off of 0.98% Cg. There are an additional 24 million tonnes of inferred resources grading 1.65% Cg (at a 1.02% Cg cut-off) in the new resource estimate.
Northern Graphite is updating the last year's feasibility study to reflect the new resource estimate and to fine tune the project economics. Contract mining will be replaced by owner mining which is expected to reduce operating costs by over $100 per tonne of concentrate. Another $7 million that is to be added to the cost of mining equipment will be offset by the removal of detailed engineering costs and modifications to the SAG mill drive and discharge layout. Plans are also underway for the company to build a compressor station at the TransCanada pipeline and truck natural gas to the mine site.
The previous feasibility study and other technical reports are posted at NorthernGraphite.com.