SRG Graphite increases resource estimate at Lola by 54%
Momentum Public Relations
Press Release: June 18 2018
SRG Graphite Inc. has provided an updated mineral resource estimate for its 100-per-cent-owned Lola graphite deposit located in the Republic of Guinea. The 2018 mineral resource estimate represents an increase of 54 per cent of in situ graphitic carbon (Cg) at a 3-per-cent cut-off grade since the publication of the maiden resource. In preparation for the next phase of development of the project, several boreholes were completed to increase measured and indicated resources from inferred resources. As such, measured and indicated resources increased from 224,118 tonnes to 676,900 tonnes of Cg content at a 3-per-cent cut-off grade, an increase of 201 per cent.
The 2018 Mineral Resource Estimate, prepared by Montreal-based Met-Chem, a division of DRA Americas Inc. (“Met-Chem/DRA”), includes a pit-constrained measured and indicated resource of 12.2 million tonnes (“Mt”) grading 5.6% Cg and an inferred resource of 2.1 Mt grading 6.1% Cg, using a cut-off grade of 3.0% Cg. Effective date of the estimate is June 14, 2018.
The 2018 Mineral Resource Estimate replaces the maiden mineral resource estimate which was reported by SRG on December 22, 2017, and subsequently included in a Technical Report completed by Met-Chem/DRA with an effective date of September 30, 2017. A NI 43-101 Technical Report will be filed on SEDAR within 45 days of this news release providing the details of this resource update. Figure 1 provides a map of the current drilling program. Completed boreholes, assay results pending and boreholes to be completed can be viewed on the map.
Resource Summary
The mineral resources are based on 395 boreholes for 12,086 meters (“m”) drilled up to April 4, 2018. Since that time, an additional 162 diamond drill holes have been completed, for approximately 5,686 additional meters for a total of 17,954 meters. Assay results for these additional holes are pending. Drilling onsite is ongoing and an additional 3,000 meters of drilling are scheduled to take place in the second half of 2018.
The updated resource is established for the oxide profile of the deposit, from surface to a depth ranging between 20 and 50 meters, with an average thickness of 32 meters. The mineralization continues at depth within the fresh rock material, but drilling is stopped once fresh rock is reached. The area for the resources covers approximately 33% of the deposit’s 3.2-square-kilometer surface area.
The estimate was prepared using a block model constrained with 3D wireframes of the principal mineralized domains. Values for graphitic carbon were interpolated using Ordinary Kriging (OK) interpolation methodologies on 10 * 10 * 2m blocks. As in the previous resource estimate, a preliminary open pit optimization algorithm was run on the estimated grade block model. Only mineralization contained within the preliminary pit shell has been included in the resource estimate.The base case mineral resource estimate is summarized in the following table at a cut-off grade of 3.0% Cg together with estimate sensitivities at 1.64% Cg and 5.0% Cg.
LOLA GRAPHITE PROJECT MINERAL RESOURCES AT A CUT-OFF GRADE OF 3.0% CG AND SENSITIVITIES AT 1.64%CG AND 5.0% CG CUT-OFF GRADES Base case mineral resources Cut-off grade Classification Tonnes Cg In situ Cg Cg % (Mt) (%) (t) 3% Measured 1.40 5.32 74,700 Indicated 10.79 5.58 602,200 Total ind. and meas. 12.20 5.55 676,900 Inferred 2.06 6.07 125,200 Sensitivities Cut-off grade Classification Tonnes Cg In situ Cg Cg % (Mt) (%) (t) 1.64% Measured 2.13 4.31 91,900 Indicated 17.00 4.39 746,400 Total ind. and meas. 19.14 4.38 838,400 Inferred 2.82 5.07 143,000 Cut-off grade Classification Tonnes Cg In situ Cg Cg % (Mt) (%) (t) 5% Measured 0.60 7.14 42,700 Indicated 5.02 7.46 374,800 Total ind. and meas. 5.62 7.43 417,500 Inferred 1.18 7.54 88,700
About Met-Chem/DRA
Met-Chem, a division of DRA Americas Inc., was originally established in 1969 as a consulting engineering company, headquartered in Montreal, and provides a wide range of technical and engineering services. Met-Chem is well recognized for its capabilities in mining, geology and mineral processing and has a talented team of engineering, technical and project management personnel with experience in North America, Latin America, Europe, West Africa and India. DRA is a multidisciplinary global engineering group that originated in South Africa and delivers mining, mineral processing, energy, water treatment and infrastructure services from concept to commissioning, as well as comprehensive operations and maintenance services for the mineral resources, water, agriculture and energy sectors. DRA has offices in Africa, Australia, Canada, China, India and the United States.
Qualified Person
Dr. Marc-Antoine Audet, P.Geo., Lead Geologist, SRG was responsible for estimating the mineral resources and has reviewed and approved the contents of this press release. Dr. Audet is a non-independent Qualified Person (“QP”) within the meaning of NI 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators. Under subsection 5.3(1) paragraph (c), as the mineral resources have changed by less than 100% from the previous filing, an independent QP is not required for the filing of this mineral resource update.
ABOUT SRG
SRG is a Canadian-based company focused on developing the Lola graphite deposit and the Gogota nickel-cobalt deposit, both located in the Republic of Guinea, West Africa. SRG is committed to operating in a socially, environmentally and ethically responsible manner.
We seek Safe Harbor.
- Published in SRG Graphite
Nouveau Monde (NOU:V) Publishes a Technical Report for the Preliminary Economic Assessment of the West Zone Graphite Deposit
Nouveau Monde Publishes a Technical Report for the Preliminary Economic Assessment of the West Zone Graphite Deposit-Tony Block-Matawinie Property, Quebec
– Momentum Public Relations –
Press Release: August 8, 2016
Nouveau Monde Mining Enterprises Inc. (“Nouveau Monde“) (TSX VENTURE:NOU)(OTC PINK:NMGRF)(FRANKFURT:NM9) is pleased to announce the publication of a technical report for the Preliminary Economic Assessment (PEA) performed for the Tony Claim Block, part of its Matawinie graphite Property. The report, completed in accordance with National Instrument (NI) 43-101 guidelines, details the PEA results announced in the press release dated June 22, 2016. The complete PEA report titled “Preliminary Economic Assessment Report for the Matawinie Graphite Project“, dated August 5, 2016, is available on SEDAR, as well as on the company’s website through this link:
http://nouveaumonde.ca/wp-content/uploads/PEA_NouveauMonde_Matawinie_Graphite_20160805.pdf
Furthermore, the Company wishes to announce that a first phase of exploration drilling for 2016 was completed last week on the West Zone of the Tony Claim Block. The goal of the work was to extend the mineralized zone to the north and to the south, its occurrence there being strongly suggested by airborne geophysical survey results. Twenty-five (25) holes were completed, resulting in 4217 m of drilling. Results will be used to plan a second phase of drilling which is scheduled to start in the fall and whose objective will be to upgrade the already identified mineral resources on the West Zone from the Inferred Category to the Indicated Category. In addition, Nouveau-Monde would like to announce that it has selected SNC-Lavalin, a leading engineering group, to carry out environmental baseline studies for the project. Field measurements and observations started last July and are scheduled to be completed during the summer of 2017.
MATAWINIE GRAPHITE PROJECT
The Tony Claim Block is located in the Saint-Michel-des-Saints area, some 120 km north of Montreal, Québec, Canada. The claim block, including the West Zone, is easily accessible using existing logging roads and is close to quality infrastructure such as paved roads and high-voltage power lines, both necessary for industrial activities. An abundance of skilled workforce is available in the community of Saint-Michel-des-Saint, as well as in surrounding communities, following the recent closing of multiple logging activities. Nouveau Monde is aggressively pursuing its Matawinie graphite project on all fronts including; metallurgical testing, site engineering, environmental and social impact studies, as well as value-added product development.
This news release was reviewed by Antoine Cloutier, P. Geo., chief geologist for Nouveau Monde and a Qualified Person under National Instrument 43-101 guidelines.
- Published in Mining, News Home, Nouveau Monde Mining
Nouveau Monde Announces Robust Preliminary Economic Assessment With Pre-Tax NPV of $403.7 Million
Nouveau Monde Announces Robust Preliminary Economic Assessment With Pre-Tax NPV of $403.7 Million and IRR of 31.2 {92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}, Concerning its Tony Claim Block-Matawinie Graphite Property
– Momentum Public Relations – June 22nd, 2016
Nouveau Monde Mining Enterprises Inc. (“Nouveau Monde”) (TSX VENTURE:NOU)(OTC PINK:NMGRF)(FRANKFURT:NM9) is pleased to announce the results of a Preliminary Economic Assessment (“PEA”) covering the West Zone of the Tony Claim Block, part of its Matawinie Graphite Property. The PEA was prepared by Norda Stelo Inc. (formerly Roche Ltd., Consulting Group), an experienced and renowned engineering firm. All costs are in Canadian funds with the exception of the graphite sale price which is provided in US dollars.
Eric Desaulniers, President and Chief Executive Officer of Nouveau Monde, stated: “The completion of this first PEA is a significant milestone for Nouveau Monde and demonstrates that the Matawinie Project has the potential of becoming a reliable and long-term supplier of quality natural flake graphite.”
Mr. Desaulniers further stated that, “The rapid advancement of our Matawinie Project continues to be highly encouraging with a robust PEA being completed only four months after the release of our mineral resource estimate for the West Zone of the Tony Claim Block. On the back of this PEA, and the recent announcement of our successful metallurgical results, we are excited about promptly moving the project forward by completing a pre-feasibility study that continues to highlight the significant potential of our Matawinie Property.”
The following lists the highlights provided by the PEA:
Project Economics:
-- Pre-tax Net Present Value (NPV) of $403.7 million at an 8{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} discount rate; -- After-tax NPV of $237.0 million at an 8{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} discount rate; -- Pre-tax Internal Rate of Return (IRR) of 31.2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}; -- After-tax IRR of 24.7{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}; -- Life of Mine (LOM) of 25.7 years; -- Mine Pay Back estimated at 2.9 years (Pre Tax); -- Mine Pay Back estimated at 3.5 years (After Tax); -- LOM Revenue of $2,430.9 million (Life of Mine revenue); -- LOM Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) of $1,586.7 million; -- Initial Capital Costs (Capex) of $144.5 million (including contingency of $22.4 million); -- Operating Expenditures (Opex) of $32.95 million per year or $660 per tonne of concentrate; -- Average sales price of graphite concentrate at $1,492 USD per tonne; -- USD$/CAD conversion rate of 1.28.
Operational Highlights:
-- Annual average full production of 49,921 tonnes of graphite concentrate; -- 4.48{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg average grade LOM graphite content contained in the mineralization; -- Graphite milling recovery above 89.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}; -- Finished product/ concentrate purity greater than 97.1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg; -- Stripping ratio (LOM) of 0.94:1.
Cautionary Note: The PEA completed for the Company is preliminary in nature and includes inferred mineral resources, considered too speculative in nature to be categorized as mineral reserves. Mineral resources that are not mineral reserves have not demonstrated economic viability. Additional trenching and/or drilling will be required to convert inferred mineral resources to indicated or measured mineral resources. There is no certainty that the resources development, production, and economic forecasts on which this PEA is based will be realized.
A technical report detailing the PEA, and completed in accordance with National Instrument (NI) 43-101 guidelines, will be filed and available on SEDAR within 45 days of this release.
MINERAL RESOURCES
The PEA is based on the mineral resource estimate, completed in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves, released on February 23, 2016 by Nouveau Monde and detailed in a technical report, completed in accordance with National Instrument (NI) 43-101 guidelines, entitled: Resource Estimate Update, Tony Block, Matawinie Property, Lanaudiere Region, Quebec, dated March 30, 2016.
The in-pit resource located on the West Zone represents only a portion of the total mineral resources identified to date on the Tony Block. The latter include 48.6 million tonnes grading 3.97 {92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} graphitic carbon (Cg) of indicated resources and 34.7 million tonnes, grading 4.08 {92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg of inferred resources, using a cut-off grade of 2.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg, spread throughout three areas, the West, the South-East and the South-West Zones (see press release dated February 23, 2016). Both south zones were not included in this PEA since the West Zone showed resources in excess of 25 years, this being the limit imposed for a relevant financial analysis. Maps displaying significant exploration results obtained to date may be downloaded below:
– Property Map: http://nouveaumonde.ca/wp-content/uploads/PR_Tony_Block_20160622r.pdf
– Map of the West Zone: http://nouveaumonde.ca/wp-content/uploads/PR_West_Zone_20160622r.pdf
MINING
A PEA is a conceptual study of the potential viability of identified mineral resources. It includes inferred mineral resources that are considered too speculative in nature, and as such, cannot be categorized as mineral reserves. The purpose of this study is to inform the reader of the economic potential of the mineral property.
In the following text, graphite is expressed in graphitic carbon percentage (Cg {92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}).
Mining Highlights
-- Only the West Zone of the Tony Claim Block has been considered in the PEA as it provided the best economics compared to the other mineralized zones; -- The in-pit resources represents only a portion of the total mineral resources identified on the Tony Block (see news release published February 23, 2016); -- The open pit optimisation, using GEOVIA's Whittle(TM) software, considers as viable a portion located 45 metres (m) deeper than the arbitrary limit of 435 m at sea level (ASL) used for the mineral resources estimate of the West Zone as reported on February 23, 2016; -- Mining is performed by open pit using a conventional truck and shovel operation; -- The mining production schedule is limited to one shift of 10 hours, 5 days a week so as to reduce environmental and social impact; -- Mining is to be executed under contract services under the supervision of Nouveau Monde; -- The mining operation is set at 75{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the milling capacity for the first year for ramp up; -- Mine life of 25.7 years, with a total in-pit undiluted resource of 16.0 Mt grading 4.38{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg and 14.8 Mt grading 4.88{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg of indicated and inferred resources respectively; -- After a 5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} dilution and a mining recovery of 95.2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}, the West Zone represents a potential life of mine (LOM) graphite content of 1.38 Mt; -- LOM undiluted head grade of 4.62{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg compared to the undiluted resources estimate of 4.39{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg reported on February 23, 2016, indicates that grade increases with depth; -- Pre-production is planned over a two year period in order to prepare the infrastructure which includes the mine site, mill and tailing facilities.
The geotechnical parameters presented in Table 1 were used for the West Zone pit optimization performed by GEOVIA’s Whittle(TM) software:
Table 1: West Zone open pit preliminary design parameters.
---------------------------------------------------------------------------- Item Value Unit ---------------------------------------------------------------------------- Bench Height (double benching) 10 m ---------------------------------------------------------------------------- Berm Width 6 m ---------------------------------------------------------------------------- Ramp and Haul Road Width 18 m ---------------------------------------------------------------------------- Bench Face Angle 85 degree ---------------------------------------------------------------------------- Inter-ramp Slope Angle 55 degree ---------------------------------------------------------------------------- Overall Slope Angle 50 degree ----------------------------------------------------------------------------
The study contemplates an average feed rate of 3,290 tonnes per day and a 25.7 year mine life at an average life of mine (LOM) waste to mineralized material strip ratio of 0.94:1. The mineable portion of the mineral resource was developed based on a marginal cut-off grade of 1.96{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg (low grade) and a breakeven cut-off grade of 2.28{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg (high grade) using the cost and revenue parameters presented in Table 2.
Table 2: Cost and revenue parameters used for cut-off grade determination
(The following parameters could differ from those used for the financial analysis)
---------------------------------------------------------------------------- Item Value Unit ---------------------------------------------------------------------------- Processing cost 14.67 C$/t milled ---------------------------------------------------------------------------- General & Administrative cost 4.21 C$/t milled ---------------------------------------------------------------------------- TMF maintenance cost 0.96 C$/t milled ---------------------------------------------------------------------------- Reference mining cost (Waste) 4.52 C$/t milled ---------------------------------------------------------------------------- Mining cost (Mineralized materials) 5.84 C$/t milled ---------------------------------------------------------------------------- Reclamation cost 1.20 C$/t milled ---------------------------------------------------------------------------- Selling price Cg 1,492 USD$/t of concentrate ---------------------------------------------------------------------------- Milling recovery 89.5 {92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} ---------------------------------------------------------------------------- Finished product/concentrate purity 97.1 {92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg ---------------------------------------------------------------------------- Commodity payment 100 {92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} ----------------------------------------------------------------------------
A Net Smelter Return (NSR) royalty of 2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} applies to the Tony Claim Block. Nouveau Monde can buy back this 2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} NSR royalty in a one-time payment of $2 million during the pre-production years. This royalty was therefore not applied on the cut-off grade calculation as it is assumed that it will be paid prior to the beginning of mine production.
Once a dilution of 5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} and a mining recovery of 95.2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} are applied on the in-pit resources (based on experience from similar operations), the mineralized material extracted over the course of the mine life totals 16 Mt grading 4.38{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg in the indicated category and 14.8 Mt grading 4.88{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg in the inferred category. The West Zone thus represents a potential LOM graphite content of 1.38 Mt. The in-pit mineable resources for the West Zone are summarized in Table 3 below:
Table 3: In-pit life-of-mine resources for the West Zone
---------------------------------------------------------------------------- Resources Estimate statement (Mt) In-Pit (February 23, Class Resources (Mt) Grade ({92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg) 2016) Grade ({92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg) ---------------------------------------------------------------------------- Indicated 16.0 4.38 22.3 4.25 ---------------------------------------------------------------------------- Inferred 14.8 4.88 15.5 4.59 ----------------------------------------------------------------------------
Compared to the resources estimate released on February 23, 2016, the in-pit LOM tonnage represents 72{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} and 95{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the indicated and the inferred resources, respectively. This difference can be attributed to the pit optimisation process which considers as viable a portion located 45 m deeper than the arbitrary limit of 435 m above sea level (ASL) used for the mineral resources estimate of the West Zone as reported on February 23, 2016. Moreover, the LOM undiluted head grade of 4.62{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg compared to the undiluted resources estimate of 4.39{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg seems to indicate that grade increases with depth below the 435 m level.
The mining infrastructures have been conceived with the purpose of integrating environmentally friendly aspects and promoting a low visual impact. The processing plant and waste piles will be located less than 1,000 metres from the mine so as to minimize the project’s carbon footprint, to ensure short cycle times and to lower production costs.
The main mining infrastructure considered in this PEA comprises:
-- 8.3 km of roads; -- Potential-Acid Generating (PAG) waste rock storage totalling 257,000 m(2)(in case potential acid-generating waste is confirmed through additional testing) ; -- Non-Acid Generating (NAG) waste rock storage covering 233,700 m(2); -- Storage area covering 221,000 m(2)for overburden and top soil; -- Storage area covering 30,000 m(2) for low- grade stockpile; -- Two sedimentation ponds; -- One office occupying an area of 9,600 m(2); -- Garage facilities.
A mine site plan conceived for the PEA may be downloaded below:
– Mine Site Plan: http://nouveaumonde.ca/wp-content/uploads/PR_Mine_Site_Plan_20160622.pdf
PROCESSING & RECOVERY
A proven metallurgical process performed on a composite sample from the West Zone, using flotation only, yielded a concentrate with a purity above 97.1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg and a recovery rate over 89.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. Metallurgical testing supplied the parameters shown below:
-- Processing costs; -- $331.38/tonne of finished product -- $13.64/tonne of material processed -- Average annual processing rate of 1.21Mt; -- Average annual production of 49,921 tonnes of graphite concentrate; -- Average graphite recovery of 89.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}; -- Finished product purity: -- 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Global greater than 97.1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg, or; -- 16.1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce},+50mesh @ 97.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg; -- 29.8{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce},-50+80mesh @ 97.6{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg; -- 11.1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}, -80+100mesh @ 97.4{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg; -- 43.0{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}, -100mesh @ 96.3{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg.
The first step of the graphite recovery process for the Matawinie Project consists of crushing the mined material. This will be followed by multiple steps of grinding, attrition scrubbing and flotation, and subsequent filtration, drying and classification. The processing plant design is based on a flow sheet developed at SGS Minerals Services, located in Lakefield, Ontario (Canada), using proven technologies to create a very efficient beneficiation operation. With this process, it is possible to obtain remarkably high graphite quality while obtaining good recoveries. This is especially true for the West Zone mineralization which is the subject of the current PEA.
Although the lock-cycle tests have not yet been performed and the optimization of the various circuits will be part of the next studies only, the results achieved for this PEA are very promising and demonstrate the robustness of the flow sheet. See the Company’s press release dated May 9, 2016 for further details on the Matawinie project metallurgical results.
GRAPHITE SALES PRICE ASSUMPTION
The graphite concentrate sales price used for the PEA was established at 1492$US/tonne. The selling price was determined using pricing information, averaged during a period of 60 months (from June 2011 to May 2016), obtained from Benchmark Mineral Intelligence (Benchmark) (www.benchmarkminerals.com). Benchmark is an independent credible source which compiles international graphite prices for various commercial size fractions and concentrate purities. The West Zone graphite concentrate value was calculated based on the weighted average of each size fraction and purities obtained during the metallurgical testing described in the section above. Table 4 presents graphite concentrate values in USD$ for various size fractions.
Table 4. Price per size fraction using a 60 month average value obtained through Benchmark Minerals Intelligence.
---------------------------------------------------------------------------- 60 month Average Price Size Fraction Purity (Cg) ($USD/t) Weight ---------------------------------------------------------------------------- +50 mesh 96-97{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} $2,308 16.10{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} ---------------------------------------------------------------------------- +80 mesh 96-97{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} $1,526 29.80{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} ---------------------------------------------------------------------------- +100 mesh 96-97{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} $1,358 11.10{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} ---------------------------------------------------------------------------- -100 mesh 96-97{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} $1,198 43.00{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} ---------------------------------------------------------------------------- Weighted Average Price: $1492 USD
DESCRIPTION OF ECONOMIC EVALUATION
According to the PEA, the Tony Claim Block has demonstrated potential economic viability in regards to an open pit graphite mine over the West mineralized Zone.
The capital cost estimate, summarized below, covers the development of the mine, ore processing facilities, and infrastructure required for Nouveau Monde’s project. It is based on the application of standard costing methods of achieving a PEA which provides an accuracy of +/-35{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. The operating cost covers mining, transportation, processing, tailings and water management, general and administration fees, as well as infrastructure and services.
CAPITAL & OPERATING COSTS
The capital intensity and cash operating costs are summarized below:
Capital Cost Breakdown (CAD) Mining $15,632,000 Plant $60,130,000 Tailings and water management $13,159,000 Infrastructure and Services $9,343,000 Total direct costs $98,264,000 Indirect costs $18,155,000 Owner's costs $5,644,000 Contingency (direct & indirect costs) $22,389,000 Total Initial Capex $144,452,000 Sustaining capital (including contingency) $14,422,000 Mine closure and rehabilitation (including contingency) $11,789,000 Total Sustaining & Mine Closure $26,211,000 Mine development costs Included in Capex (Mining) Cash Operating Cost Breakdown (per tonne of finished product) (CAD$) Mining $241/tonne Process, Tailings & Water $331/tonne General & Administration $88/tonne Total $660/tonne
PROJECT LOCATION & INFRASTRUCTURE
The Tony Claim Block is located in the Saint-Michel-des-Saints area, some 120 km north of Montreal, Quebec, Canada. The claim block, including the West Zone, is easily accessible using existing logging roads and is close to quality infrastructure such as paved roads and high voltage power lines, both necessary for industrial activities. An abundance of skilled workforce is available in the community of Saint-Michel-des-Saint as well as in surrounding communities, following the recent closing of multiple logging activities.
QUALITY CONTROL & ASSURANCE
The technical information derived from the Preliminary Economic Assessment present in this news release was prepared by Pierre H. Terreault, P.Eng. MPM, of Norda Stelo Inc., an independent Qualified Person as defined by National Instrument 43-101. The press release was reviewed by Eric Desaulniers, M.Sc., P.Geo., President and CEO of Nouveau Monde, a Qualified Person under National Instrument 43-101 guidelines.
- Published in Mining, News Home, Nouveau Monde Mining
Nouveau Monde (NOU:TSX-V) Updates and Invites Shareholders to Press Conference
Nouveau Monde (NOU:TSX-V) Updates and Invites Shareholders to Press Conference
– Momentum Public Relations – June 20th, 2016
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- Published in Blog, Mining, News Home, Nouveau Monde Mining
Canada Strategic Metals (CJC.V) Monetizes Graphite Asset
Canada Strategic Metals (CJC.V) Monetizes Graphite Asset
– Momentum Public Relations –
Press Release: May 16, 2016
Canada Strategic Metals Inc. (“Canada Strategic Metals” or “the Company”) (TSX VENTURE:CJC)(FRANKFURT:YXEN)(OTCBB:CJCFF) and Lomiko Metals Inc. (TSX VENTURE:LMR)(OTCQX:LMRMF)(FRANKFURT:DH8B) are pleased to announce the signature of an additional option Agreement on the La Loutre and Lac des Iles Property allowing Lomiko to acquire up to 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} interest in the project.
“The Properties are located close to the Imerys Carbon and Graphite Mine and benefits from similar infrastructure advantages and similar flake graphite grade, deposit size and near surface mineralization amenable to low cost, small footprint extraction. All of these elements make this an excellent candidate for a positive Pre-Economic Assessment.”, stated A. Paul Gill, CEO, Lomiko Metals Inc., “Additional resource definition in the Refractory Zone will bolster the PEA.”
Subject to Lomiko having exercised the Additional Option signed on February 6, 2015, Canada Strategic will also grants to Lomiko the exclusive right and option (the “Third Option“) to increase its undivided interest in and to the La Loutre Property and the Lac des Îles Property from 80{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} to 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} by paying to Canada Strategic an additional amount of $10,000, by issuing to Canada Strategic an additional 7,500,000 common shares of Lomiko and by funding Exploration Expenditures for an additional amount of $1,125,000 on Canada Strategic properties for a period commencing on the deemed exercise of the Additional Option and ending on December 31, 2018. Previous to this option, Lomiko owned 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the La Loutre and Lac des Iles Properties and had an option to increase ownership to 80{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} based on completing work and issuing shares
The La Loutre property consists of contiguous claim blocks totalling approximately 2,867.29 hectares (28.67 km2situated approximately 53 km east of Imerys Carbon and Graphite, formerly known as the Timcal Graphite Mine, North America’s only operating graphite mine, and 117 km northwest of the International Port of Montreal, key to shipping to North America and Europe. The Lac des Iles Property is directly west of the Imerys Grpahite Mine. Lomiko is currently completing the 2nd option to acquire 80{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the La Loutre and Lac des Iles properties which requires $580,000 work expenditure between La Loutre property and others Canada Strategic properties.
The La Loutre Resource is constrained within a drilled area of approximately 900 m along the N150° striking trend of the graphitic paragneiss, 250 m across the strike and 225 m below surface. Geological interpretation and estimation were based on 62 NQ drill holes (totaling 8193.3 m) drilled by Lomiko and Canada Strategic Metals in 2014 and 2015.
On February 9th, 2016, Lomiko Metals and Canada Strategic announced resource for the La Loutre Flake Graphite Property of 18.4 M Tonnes of 3.19{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Indicated and 16.7 M Tonnes at 3.75{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Flake Graphite Inferred with a cut-off of 1.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. The sensitivity table also features 4.1 M Tonnes of 6.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Indicated and 6.2 M Tonnes at 6.1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Flake Graphite Inferred with a cut-off of 3{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. The Resource is calculated on the Graphene-Battery Zone only and does not include recent high grade intercepts of 28.5 metres of 16.53{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg and 21.5 metres of 11.53{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg reported January 6, 2016 and 9{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} over 90.75 metres reported September 24th 2015 from the Refractory Zone.
Qualified persons
Jean-Sebastien Lavallée (OGQ #773), Geologist, is a shareholder of both companies, President and Chief Executive Officer of the Canada Strategic and a Qualified Person under NI 43-101, has reviewed and approved the technical content of this release.
About Canada Strategic Metals
Canada Strategic Metals is an emerging company focused on the exploration and development of a number of projects covering over 20,000 hectares in Quebec. With broad management experience in green technology and junior resource exploration and development, Canada Strategic Metals is well positioned to aggressively advance this promising property portfolio for its shareholders.
For more information on the Company, please visit www.csmetals.ca.
- Published in Canadian Strategic CJC, Mining, News Home
Nouveau-Monde Announces an Overall Purity of 98.2 C(t) After Flotation
Nouveau-Monde Announces an Overall Purity of 98.2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} C(t) After Flotation on a Master Composite Representative of the West Mineralized Zone of the Tony Block–Matawinie Graphite Property
– Momentum Public Relations – May 9th, 2016
Nouveau Monde Mining Enterprises Inc. (“Nouveau Monde“) (TSX VENTURE:NOU)(OTC PINK:NMGRF)(FRANKFURT:NM9) is pleased to announce significant metallurgical results averaging 98.2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} C(t) for all flake sizes and reaching as high as 99.1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} C(t) for the jumbo flakes of +48 mesh. These metallurgical results are from the flowsheet development program that is currently being carried out at SGS Lakefield. The metallurgical work presented here was conducted on a master composite from the West Zone of the Tony Claim Block. This claim block is a key part of our Matawinie Graphite Property, located in the Saint-Michel-des-Saints area, approximately 130 km north of Montreal, Québec, Canada.
Eric Desaulniers, Geo, President & CEO of Nouveau Monde stated: “These results are based on very robust metallurgical testing methods developed by one of the most experienced metallurgical teams in graphite project development in North America. The key takeaway for us is that industry experts commonly agree that obtaining these exceptionally high purities on all flake sizes, from a simple low cost process, is one of the most important factors for a successful graphite project. As such, these results places Nouveau-Monde in the enviable position of being able to develop products suitable for multiple markets across the entire graphite sector, including the growing li-ion battery market.”
METHODOLOGY
The West Zone master composite was generated by combining a total of 364 individual drill core sub-samples. The samples form a composite that provides a representative spatial and grade distribution aimed at characterizing the metallurgical response of the West Zone ore. Sample locations are illustrated on a property map that can be downloaded using the following link: http://nouveaumonde.ca/wp-content/uploads/West_Zone_Metallurgy_20160504.pdf.
The objective of the metallurgical program was to develop a process that is suitable to upgrade the Tony Block mineralization into a high-grade graphite flotation concentrate, while minimizing flake degradation. The investigated mineral processing technologies included typical crushing, grinding and flotation processes employed in the industry. No thermal or chemical purification was attempted on the final flotation concentrate.
RESULTS
The proposed process for the Tony Block mineralization consists of a rougher and scavenger flotation, followed by polishing grinding and primary cleaning. After a classification stage, the intermediate concentrate is subjected to attrition scrubbing followed by secondary cleaning.
The table below (Table 1) summarizes the metallurgical test results for the West Zone master composite. The combined flotation concentrate yielded an excellent grade of 98.2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} total carbon. The highest grade for an individual size fraction, 99.1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} total carbon, was obtained for the +48 mesh products (jumbo size category) which makes up 13.3{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the graphite concentrate mass. With an additional 31.8{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the concentrate mass reporting to the -48/+80 mesh size fraction, the recovery for the large and jumbo flake sizes thus proved to total 45.1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. Meanwhile, the mass recovery for the medium-size category (-80/+150 mesh) is also high at 34.1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. Finally, only 20.8{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the mass reported to the fines (-150 mesh). The combined concentrate grade of the medium and large flake categories (greater than 150 mesh) was 98.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} total carbon.
Table 1. Concentrate Flake Size Mass Distribution ({92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}) and Total Carbon Grade (Ct {92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}) | |||
Size Fraction | Weight | Assays, {92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} | {92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Distr. |
{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} | C(t) | C(t) | |
+48 mesh | 13.3 | 99.1 | 13.4 |
+65 mesh | 20.0 | 98.6 | 20.0 |
+80 mesh | 11.9 | 98.4 | 11.9 |
+100 mesh | 14.4 | 98.6 | 14.5 |
+150 mesh | 19.7 | 98.1 | 19.7 |
+200 mesh | 9.5 | 97.4 | 9.4 |
+325 mesh | 6.8 | 97.3 | 6.7 |
+400 mesh | 2.0 | 95.8 | 1.9 |
-400 mesh | 2.6 | 93.6 | 2.4 |
Total Concentrate | 100.0 | 98.2 | 100.0 |
* All total carbon measured by LECO SC632
The total carbon recovery for the final flotation concentrate was 84.3{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. This number is considered conservative due to the fact that the test was carried out as an open circuit batch test. A total of 11{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the carbon units in the feed reported to the intermediate tailings in this test.
The process optimization program thus improved on the combined concentrate grades obtained in 2015 scoping level studies which had produced graphite concentrates grading between 93.1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} total carbon and 97.1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} total carbon.
The results outlined above confirm the coarse flake size distribution and high purity of the graphite concentrates generated by the 2015 scoping level flotation tests. While the samples employed in the scoping level tests consisted of trench or drill core material from specific areas of the Tony Block target, the West Zone master composite was selected to be as representative as possible of the West Zone, including samples from all available drill holes.
FUTURE METALLURGICAL WORK
Variability flotation tests are presently being conducted on six composites from the West and South Zones. A master composite combining samples from both South zones (SW and SE) will also be processed in the near future.
The technical information in this news release was prepared by Eric Desaulniers, Geo, MSc, president and CEO of Nouveau-Monde and reviewed by Oliver Peters, MSc, P.Eng, MBA, Consulting Metallurgist for SGS and Principal Metallurgist of Metpro Management Inc. Both are qualified persons under National Instrument 43-101.
- Published in Mining, News Home, Nouveau Monde Mining
Canada Strategic Metals (CJC.V) and Lomiko to Drill High Grade Flake Graphite Zone Which has Intercepts of 90.75 m of 9 Cg and 33.3 m of 14.62 Cg
Canada Strategic Metals (CJC.V) and Lomiko to Drill High Grade Flake Graphite Zone Which has Intercepts of 90.75 m of 9{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg and 33.3 m of 14.62{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg
– Momentum Public Relations –
Press Release: April 11, 2016
Canada Strategic Metals Inc. (“Canada Strategic Metals” or “the Company”) (TSX VENTURE:CJC)(FRANKFURT:YXEN)(OTCBB:CJCFF) and Lomiko Metals Inc. (TSX VENTURE:LMR)(OTCQX:LMRMF)(FRANKFURT:DH8B) announced March 24, 2016 the filing of a technical report prepared in compliance with NI 43-101 was filed for the La Loutre Flake Graphite Property of 18.4 M Tonnes of 3.19{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Indicated and 16.7 M Tonnes at 3.75{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Flake Graphite Inferred with a cut-off of 1.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}.
The Resource did not include high grade intercepts of 28.5 Metres of 16.53{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg and 21.5 Metres of 11.53{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cg reported January 6, 2016 and 9{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} over 90.75 metres reported September 24th 2015 from the Refractory Zone.
“The Graphene-Battery Zone has delivered excellent results but the La Loutre has much more to offer at the Refractory Zone,” stated A. Paul Gill, CEO of Lomiko, “We need to drill the Refractory Zone to a resource level to confirm the full potential of the property. Further, Lomiko will complete metallurgy and graphite characterization studies in relation to a preliminary assessment of the best market for the graphite from the property.”
Top Ten Drill Results at the La Loutre Flake Graphite Property
* | Length along the core. According to the Society, the true width of the drillhole represents between 70{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} and 95{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} along the core. |
** | The Company doesn’t have enough information to estimates the true width of the mineralized zone intersected in the drill holes. |
(1) | no sample 40.80-41.15; |
Qualified persons
Jean-Sebastien Lavallée (OGQ #773), Geologist, is a shareholder of both companies, President and Chief Executive Officer of the Canada Strategic and a Qualified Person under NI 43-101, has reviewed and approved the technical content of this release.
About Canada Strategic Metals
Canada Strategic Metals is an emerging company focused on the exploration and development of a number of projects covering over 20,000 hectares in Quebec. With broad management experience in green technology and junior resource exploration and development, Canada Strategic Metals is well positioned to aggressively advance this promising property portfolio for its shareholders.
For more information on the Company, please visit www.csmetals.ca.
- Published in Canadian Strategic CJC, Mining, News Home
Canada Strategic Metals (CJC.V) Announces Closing of $205,000 Private Placement
Canada Strategic Metals (CJC.V) Announces Closing of $205,000 Private Placement
– Momentum Public Relations –
Press Release: April 5, 2016
Canada Strategic Metals Inc. (“CS Metals” or “the Company”) (TSX VENTURE:CJC)(FRANKFURT:YXEN)(OTCBB:CJCFF) is pleased to announce that it has closed a non-brokered private placement, for an amount of $205,000.
The Company has issued 4,100,000 common shares at a price of $0.05 per share, for gross proceeds of $205,000.
All the securities issued under the private placement are subject to a mandatory hold period of four months plus one day following the closing of the private placement.
The proceeds of this private placement will be used for working capital and for property development.
The private placement is subject to regulatory approval.
About Canada Strategic Metals
Canada Strategic Metals is an emerging company focused on the exploration and development of a number of projects covering over 20,000 hectares in Quebec. With broad management experience in green technology and junior resource exploration and development, Canada Strategic Metals is well positioned to aggressively advance this promising property portfolio for its shareholders.
For more information on the Company, please visit www.csmetals.ca.
- Published in Canadian Strategic CJC, Mining, News Home
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