Energizer Resources Inc. (TSX:EGZ,OTCBB:ENZR,FWB:YE5) announced the Preliminary Economic Assessment Technical Update for its Molo graphite deposit in Madagascar: Pre-tax NPV of $421,464,000, average mill recovery 89%, average annual production of 84,000 tonnes per annum, and a mine life of 20 years.
As quoted in the press release:
Pre-tax NPV (10% Discounted, real) $421,464,000
Pre-tax IRR (Real) 48%
Post-tax NPV (10$ Discounted, real) $341,803,000
Post-tax IRR (Real) 41%
Payback 3.0 years
Mine life 20 years
Graphite sale price $1564 per tonne
Average Head Grade 8.50%
Average annual ore mined 1,169,749 tonnes per annum
Average stripping ratio 1.65
Average mill recovery 89%
Average annual production 84,000 tonnes per annum
Capital cost $162,043,315
Mining cost $4.76 per tonne mined (Initial LOM)
Processing cost $22.29 per tonne milled
Transportation cost (FOB port) $105.00 per tonne concentrate
Energizer Resources President and COO Craig Scherba said:
We have completed our stated objective to deliver both a NI 43-101 resource and a PEA on the Molo Project. This PEA provides the necessary information to the market for quantified evaluation of the Molo deposit.
Investing in graphite? Eagle Graphite Incorporated (TSXV:EGA) owns one of only two natural flake graphite production facilities in North America. Eagle Graphite recently achieved 99.995% purity from flake graphite produced from the processing plant of the Black Crystal project in BC.
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