NextSource Materials announces updated FS for Molo graphite project
2019-10-09 09:47:46 [Print]
Canadian-based NextSource Materials Inc recently published results of an updated feasibility study ("FS") for its flagship Molo graphite project in Madagascar, showing increased project build cost due to equipment inflation.
To maintain a first-mover competitive advantage and to appropriately plan for future market demand, the FS was designed to provide a flexible mine development approach that comprises an all-modular build solution, the company says.
NextSource currently has an offtake agreement in place with a Japanese trader and is in the process of formalizing an additional sales agreement with a European trader. The FS was undertaken to include two phases in order to account for offtakers' demand for the company's super flake graphite concentrate.
Phase 1 of the project will consist of a fully operational and sustainable graphite mine with a permanent processing plant capable of processing 240,000 tonnes of ore and producing about 17,000 tonnes of high-quality super flake concentrate annually. The updated build cost of the fully modular process plant has increased to $21 million from the $18.4 million reported in 2017.
Phase 2 incorporates the processing of 240,000 tonnes of ore for each of the first two years and then ramping up to 720,000 tonnes a year in the third year to accommodate additional sales, resulting in a total of 45,000 tonnes of super flake concentrate being produced annually over a 30-year mine life.
Costing for Phase 2 is based on the addition of two modules of the beneficiation plant with a proportional increase in mining and infrastructure costs. The capital mine cost of Phase 2 will be $39.1 million, for a total project cost (Phase 1 and Phase 2) of $60.1 million.
To maintain a first-mover competitive advantage and to appropriately plan for future market demand, the FS was designed to provide a flexible mine development approach that comprises an all-modular build solution, the company says.
NextSource currently has an offtake agreement in place with a Japanese trader and is in the process of formalizing an additional sales agreement with a European trader. The FS was undertaken to include two phases in order to account for offtakers' demand for the company's super flake graphite concentrate.
Phase 1 of the project will consist of a fully operational and sustainable graphite mine with a permanent processing plant capable of processing 240,000 tonnes of ore and producing about 17,000 tonnes of high-quality super flake concentrate annually. The updated build cost of the fully modular process plant has increased to $21 million from the $18.4 million reported in 2017.
Phase 2 incorporates the processing of 240,000 tonnes of ore for each of the first two years and then ramping up to 720,000 tonnes a year in the third year to accommodate additional sales, resulting in a total of 45,000 tonnes of super flake concentrate being produced annually over a 30-year mine life.
Costing for Phase 2 is based on the addition of two modules of the beneficiation plant with a proportional increase in mining and infrastructure costs. The capital mine cost of Phase 2 will be $39.1 million, for a total project cost (Phase 1 and Phase 2) of $60.1 million.
