Next Graphite Releases Preliminary Economic Analysis for Aukam

Next Graphite Inc. (OTCQB:GPNE) announced its preliminary economic analysis for above-ground assets at its Aukam property in Namibia.

As quoted in the press release:

The mining and processing costs of this project have been estimated at $487 per metric tonne with a 17-year lifespan of the operation at 2,500 tonnes per annum. These costs are due to: a) the graphite being at the surface; and b) a grading of 42% or more with screening.

The analysis also estimates that a 17-year lifespan of the operation at 2,500 metric tonnes per annum can be increased to 5,000 and 10,000 metric tonnes per year by installing parallel processing lines. The preliminary design of the processing circuit and processing equipment has been estimated at $1.0 million, plus annual operating costs.

Cliff Bream, CEO of Next Graphite, commented:

We are delighted with this report as it confirms we already have significant, saleable assets above-ground that have very favorable processing costs. This sets the stage for an initial revenue stream for the Company, as well as impetus to continue mining of our existing adits and drill our other identified underground graphite resources. This PEA does not account for graphite that is still underground, which we plan to explore and develop as we ramp up operations and target new locations. We are currently in discussions with off-takers for the sale of graphite bearing rock from our above-ground graphite and we are talking with potential joint venture partners to accelerate the construction of an on-site processing facility. The months ahead should be a very exciting period for Next Graphite.

Click here to read the full Next Graphite Inc. (OTCQB:GPNE) press release.

Next Graphite, Inc. is an exploration/development stage company targeting the growing global graphite production industry with the Company’s 125,000-acre Africa-based Aukam Graphite Project. The Aukam Graphite Mine was established in 1940 in the current Republic of Namibia, produced USD$30 million of graphite at today’s prices. The Graphite property is estimated to still contain a significant amount of high grade, vein type graphitic material. Global graphite demand is being driven by the development of new markets for clean and efficient energy alternatives, smart grid infrastructure and military capabilities. Next Graphite has an immediately available, surface-visible, estimated 140,000-tonne mine heaps along with competitive projected mining and processing costs. The completion of GPNE’s Aukam Graphite Mine re-launch and development activities are expected to result in a multi-million dollar inward investment into Namibia commencing in 2015.