Northern Graphite Updates PEA for Bissett Creek Project

Northern Graphite Corp. (TSXV:NGC,OTCQX:NGPHF) announced that it has updated the preliminary economic assessment for its Bissett Creek graphite project. The aim of the update was to assess the economics of “building a process plant with twice the capacity of the plant contemplated” in the company’s feasibility study.

As quoted in the press release:

The larger process plant was evaluated due to recent developments in the lithium ion battery industry and strong buyer interest in the extra large flake, high purity concentrates that will be produced using Northern’s proprietary purification technology.

The updated PEA indicates that the Bissett Creek Project has very attractive economics even at or below current depressed graphite price levels. The pre-tax internal rate of return (‘IRR’) is 31.7% (26.7% after tax) and the pre-tax net present value (‘NPV’) is $264.7 million ($178.9 million after tax) in the base case which is based on an 8% discount rate and a weighted average price of US$1,800/tonne of concentrate which reflects current market conditions.

Gregory Bowes, CEO of Northern Graphite, commented:

It has been reported that multiple new graphite mines will be required to supply proposed lithium ion battery manufacturing plants because graphite deposits typically produce a high percentage of non battery grade material, and two thirds of the material that is battery grade is lost in the manufacturing process. However, Bissett Creek may be the only mine that is required to meet market demand due to its very high percentage of battery grade material, lower manufacturing losses and future expansion potential.

Click here to read the full Northern Graphite Corp. (TSXV:NGC,OTCQX:NGPHF) press release.