Northern Graphite Corporation - CEO, Gregory Bowes
CEO, Gregory Bowes
Source: BNN Bloomberg
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Northern Graphite Corporation (NGC) has completed a preliminary economic assessment for the restart of its Okanjande/Okorusu graphite operation in Namibia
  • The report notes that Northern Graphite can bring the project back into production by mid 2023
  • The sum of US$15.1 million will be required as capital to initiate production
  • Northern Graphite is a Canadian company focused on becoming a world leader in producing natural graphite for the green economy
  • Northern Graphite Corporation was unchanged at C$0.53 at 2:24 PM ET

Northern Graphite (NGC) has completed a preliminary economic assessment (PEA) for the restart of its Okanjande/Okorusu graphite operation in Namibia.

The report notes that Northern Graphite can bring the project back into production by mid 2023. This will be at an average production level of almost 31,000 tonnes per annum of graphite concentrate with a C1 production cost of $775/tonne.

The sum of $15.1 million will be required as capital to initiate production which includes the installation of a new, two-stage grinding circuit, additional regrind equipment in the flotation plant, and a new tailings storage facility.

The PEA indicates very robust project economics as reflected with a post-tax IRR of 62 per cent, a post-tax NPV of $65M, and a payback of under 2 years based on a 10 year project life and a weighted average graphite price of $1,500/tonne.

The graphite price is based on a concentrate containing11 per cent +50 mesh XL flake, 48 per cent +80 mesh large flake, 24 per cent +100 mesh medium flake and 16 per cent +150 mesh small flake, and having an average carbon content of 96 per cent.

“The results of the PEA confirm our expectations for the project and validate the decision to proceed with the acquisition and re-development at both Okanjande and Okorusu,” stated Dave Marsh, Chief Operating Officer for Northern Graphite.

Northern Graphite is a Canadian company focused on becoming a world leader in producing natural graphite and upgrading it into high value products critical to the green economy, including anode material for LiBs/EVs, fuel cells and graphene, as well as advanced industrial technologies.

Northern Graphite Corporation was unchanged at C$0.53 at 2:24 PM ET.

More From The Market Herald

" ValOre Metals (TSXV:VO) announces $2.5M private placement

ValOr Metals (VO) has announced a non-brokered private placement for gross proceeds of up to $2,500,000.

" Sigma Lithium (TSXV:SGML) preparing Phase 1 pit for mining

Sigma Lithium’s (SGML) construction remains on schedule for its Phase 1 production plant and mine at its Grota do Cirilo Project.
Contact Gold - Overview of Green Springs Project

" Contact Gold (TSXV:C) reports Q2 2022 financial & operating results

Contact Gold Corp. (C) released its financial and operating results for Q2 2022.

" Goldcliff (TSXV:GCN) samples 170 g/t silver at Kettle Valley

Goldcliff Resource Corporation (GCN) has reported that follow-up surface sampling at the Kettle Valley Gold-Silver Project in B.C. has yielded strong silver values.