Flinders Resources Pleased with Woxna PEA

Flinders Resources Ltd. (TSXV:FDR) announced that the preliminary economic assessment (PEA) for its Sweden-based Woxna graphite project has yielded positive results. The project is expected to have a design production rate of 16,600 tonnes per year of graphite concentrate, while mine life should be 13 years. Graphite purity is estimated at 88 to 95 percent and “40% by weight as premium large or extra-large flake graphite.”

Financial highlights as estimated in the PEA:

• Low start-up capital costs of $16.7 million¹ (“M”) including contingency and working capital
• Average production costs of $662 per tonne of graphite concentrate
• $26.6M post tax net present value (“NPV”) (8% discount);
• 34% post-tax internal rate of return (“IRR”)
• Payback period of 3.9 years
• Conservative average graphite sales price of $1, 199 per tonne used
• Post tax NPV increases to $37.3M (8% discount) in a sensitivity analysis when 10% higher graphite prices of $1,318 per tonne are used.

Mining details as estimated in the PEA:

• Mining costs of $240/tonne of graphite; $25.80/tonne to ROM; $4.1/tonne mined
• Average graphite grade to ROM 10.3%
• Graphite mineralization mined per year 155,000 tonnes
• Average stripping ratio 5.3:1
• Mine life 13 years

Processing and recovery details as estimated in the PEA:

• Processing costs $662/tonne of graphite concentrate, $71/tonne of material processed
• Annual average processing rate 155,000 tonnes
• Annual average production 16,600 tonnes of graphite concentrate
• Average graphite recovery 96%

Click here to read the full Flinders Resources Ltd. (TSXV:FDR) press release.