Mason Graphite Inc (TSX-V:LLG, OTCQX:MGPHF) via its partner Noveau Monde Graphite Inc (NMG) said a preliminary economic assessment (PEA) of the Uatnan Mining project in Quebec, Canada, demonstrated an indicative net present value (NPV) in excess of C$2 billion.
The project includes Mason Graphite’s Lac Guéret graphite deposit which is the subject of an option and joint venture agreement signed with NMG in May 2022.
NMG said in a statement that the PEA demonstrated attractive economics with a targeted production of approximately 500,000 tonnes of graphite concentration per annum over the 24-year life of the mine, making it one of the largest graphite mines in development.
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The PEA showed that the project is technically feasible as well as economically viable with an after-tax internal return rate of 25.9% and an 8% discount rate NPV of C$2.1 billion, it added.
On the basis of these positive results, NMG said intends to launch an updated feasibility study in compliance with its option and joint venture agreement with Mason Graphite.
NMG CEO Eric Desaulniers said the PEA confirmed the tremendous potential of the Uatnan Mining project as a lever of decarbonization for cleantech markets and socioeconomic growth for local communities.
“We will leverage our existing Phase 1 facilities, the environmental stewardship measures being developed for our Phase 2 operations, our proprietary technologies, and our demonstrated ESG credentials to advance the Uatnan Mining Project toward development,” he said.
Additional information from the PEA can be found here.
Mason Graphite is a Canadian corporation dedicated to producing and transforming natural graphite.
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