Metals Australia’s (ASX:MLS) Lac Carheil Graphite Project Prefeasibility Study (PFS) for an open cut mine and flake graphite concentrate plant confirms a pre-tax net present value (NPV) of $790.8 million.
The Québec-based project is also set to deliver an after-tax NPV of $572 million at an 8% discount rate, with a 22% internal rate of return.
According to the study, the project will produce an annual average of 101,241 tonnes of flake graphite concentrates grading 95.4% graphitic carbon over a 24-year mine life.
The project is underpinned by maiden ore reserves of 21.51 million tonnes (Mt) grading 11.14% graphitic carbon for 2.4Mt contained graphite.
Located 20km south of Fermont, Québec, Lac Carheil covers a total mineral resource of 50Mt grading 10.2% graphitic carbon for 5.1 million tonnes of contained graphite, including indicated resources of 24.8Mt grading 11.3% graphitic carbon for 2.8Mt.
Meanwhile, total capex is estimated at US$346.3 million ($504 million), including a US$40 million contingency.
The project qualifies for Canada’s clean technology manufacturing investment tax credits of up to 30%, forecast at US$96.7 million, which could reduce effective capital costs to US$249.6 million.
CEO Paul Ferguson says the economics demonstrate that Lac Carheil is a “significant asset”.
“We see the project as Canada’s next fully integrated high purity graphite project — and we remain steadfast in our endeavour to progress it towards development,” Ferguson says.
Now advancing the project to final feasibility, Metals Australia has commenced critical path metallurgical testwork and environmental survey programs required for the environmental and social impact assessment.
The company notes production is targeted for late 2030 with an initial operations workforce of 143 personnel.
Metals Australia is focused on critical minerals and metals discovery, with a portfolio of projects across Canada, Western Australia, and the Northern Territory.
Write to Paula Fabe at Mining.com.au
Images: Metals Australia
