Energizer Resources Inc. (TSX:EGZ,OTCBB:ENZR,FWB:YE5) announced a positive Preliminary Economic Assessment Technical Update for the Molo graphite deposit in Madagascar: average annual production of 84,000 tonnes per annum, average mill recovery of 89%, pre-tax NPV of $421,464,000, 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.
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