Focus Graphite Files Lac Knife Graphite Project Feasibility Study Technical Report Results position Focus Graphite as a potentially unique North American supplier of high-purity natural flake graphite concentrates for use in high-performance Li-Ion batteries.
Focus Graphite Files Lac Knife Graphite Project Feasibility Study Technical Report
Results position Focus Graphite as a potentially unique North American supplier of high-purity
natural flake graphite concentrates for use in high-performance Li-Ion batteries.
Kingston, Ontario, April 19, 2023 – Focus Graphite Inc. (TSX.V:FMS; OTCQX: FCSMF; FRANKFURT:
FKC) (“Focus” or the “Company”) today announced the filing of a National Instrument 43-101 (“NI 43-101”)
technical report (the “Technical Report”) in support of the Feasibility Study Update (FSU) for the Company’s
Lac Knife high- grade crystalline flake graphite project located near Fermont, Québec, on the Nitassinan
(ancestral lands) of the community of Innu Takuaikan Uashat mak Mani-utenam (ITUM).
The Technical Report was prepared in accordance with Canadian Securities Administrators’ NI 43- 101
Standards of Disclosure for Mineral Projects and Form 43- 101F1, and is available for review on SEDAR
(www.sedar.com) and on Focus’ website (www.focusgraphite.com).
The FSU was prepared by DRA Global Limited with assistance from various independent technical
consultants.
“With the Feasibility Study now completed, we are set to continue the process of de- risking the Project in
the near to mid-term,” said Marc Roy, President and CEO of Focus. “This work includes: consultation with
ITUM, the local First Nations community on whose Nitassinan Lac Knife is situated, as well as other
communities and stakeholders that could be impacted by the Project; completion of the environmental and
social impact assessment (ESIA) study; and guiding the Project through the formal Québec government
environmental review and permitting process.”
Mr. Roy continued, In particular, the Feasibility Study opens the door to secure another level of Project
financing that will enable us to complete the ESIA and government environmental review process, and then
advance the Lac Knife project to the detailed engineering phase. We are currently evaluating various
financing options.”
FSU highlights
The highlights of the Feasibility Study Update, as reported March 6, 2023, have been slightly adjusted but
have no material affects on the profitability of the Project.
Table 1 - Lac Knife Updated Feasibility Study Financial Highlights
Description March 6, 2023 April 17, 2023
Pre-Tax NPV @ 8% discount rate ($M CAD) $500.9 $500.6
After Tax NPV @ 8% discount rate ($M CAD) $285.7 $284.8
Pre-Tax IRR (%) 28.70% 29.10%
After Tax IRR (%) 22.4% 22.57%
Life of Mine (LOM) (years) 27 27
Pre-Tax payback period (years) 2.8 2.88
After Tax payback period (years) 3.3 3.38
Initial Capital Expenditure (Capex) ($M CAD) $236.5 $236.5
Operating Expenses (Opex) (Average over LOM $M CAD,
per year?) $25.9 25.9
Average sales price of graphite concentrate 2022 (USD/t) $1,679 $1,679
Unless otherwise noted, all monetary figures presented herein are expressed in Canadian Dollars ($) with
a USD/CAD conversion rate of 1.35.
Background
The FSU was conducted with engineering and estimation methods appropriate to target an accuracy of
15% that is standard and realistic for capital and operating cost estimates for this level of study, that is
required prior to detailed engineering. Based on an extensive risk review exercise the contingency is 12%.
Capital Expenditures in Table 2 itemize cost requirements for mine construction, processing plant, power
line and all associated infrastructure estimated at $236.5 million.
Table 2 – Lac Knife Capital Expenditure ($ CAN M)
Area Initial Cost
Mine Development 8.07
Mine Equipment and Facilities 19.66
Crushing and Concentrator 99.24
Tailings Management 22.73
Infrastructure 32.50
Indirect Costs 29.30
Contingency 25.00
Total Capital Expenditure 236.50
The operating costs, as reported March 6, 2023, have been slightly adjusted but have no material affects
on the profitability of the Project. As shown in Table 3, the operating cost for the process area is higher than
those shown in the March 6, 2023, pres s release as the total process operating costs were calculated on
the total concentrate produced rather than the concentrate sold. However, as shown in Table 1, the total
overall yearly operating cost remained the same at $25.9 million.
Table 3 – Lac Knife Operating Expenditure (27 Year Average)
$/Tonne of Concentrate
Description March 6, 2023 April 17, 2023
Mining 129.76 129.76
Processing Costs 310.56 330.82
Tailings Costs 4.38 4.38
General Administration Mine Site 95.78 95.78
Total Operating Costs 540.48 560.75
Qualified Persons
The technical information within this news release was approved by Daniel Gagnon, P. Eng., Vice President
Mining, Ghislain Prevost, P. Eng., Lead Mining Engineer, Jordan Zampini, P. Eng., Senior Process
Engineer, and Claude Bisaillon, P.Eng., Senior Geotec hnical Engineer, from DRA Global Inc., and all
individuals that are Qualified Persons under NI 43-101 guidelines and all independent of the issuer.
DRA consultant Schadrac Ibrango, P.Geo. (QC), PhD, MBA, is responsible for estimating the mineral
resources and has reviewed and approved the contents of this press release. Mr. Ibrango is a Qualified
Person ("QP"), independent of Focus Graphite, within the meaning of NI 43-101 – Standards of Disclosure
for Mineral Projects of the Canadian Securities Administrators.
Leon C. Botham, MSCE, P.E., P.Eng. (SK/BC/ON/NT/YT) from NewFields Canada Mining & Environment
ULC was responsible for the filtered tailings storage system as well as the water management system, and
has reviewed and approved the contents of this press release. Mr. Botham is a Qualified Person ("QP"),
independent of Focus Graphite, within the meaning of NI 43- 101 – Standards of Disclosure for Min eral
Projects of the Canadian Securities Administrators.
Denys Vermette, Géo (QC)., M.Sc., M.Sc. A from IOS Services Géoscientifiques Inc. was responsible for
the section on environmental studies presented in the Technical Report and has reviewed and approved
the contents of this press release. Mr. Vermette is a Qualified Person ("QP"), independent of Focus
Graphite, within the meaning of NI 43- 101 – Standards of Disclosure for Mineral Projects of the Canadian
Securities Administrators.
Mr. Marc -André Bernier, géo. (QC), P.Geo. (ON), M.Sc., Senior Geoscientist for Table Jamésienne de
Concertation Minière, a consultant to the Company and a Qualified Person as defined under National
Instrument (NI) 43 – 101 Standards of Disclosure for Mineral Projects has reviewed and approved the non-
technical content this news release.
About DRA Global Limited
DRA Global Limited (ASX: DRA | JSE: DRA) (DRA) is a multi -disciplinary consulting, engineering, project
delivery and operations management group predominantly focused on the mining and minerals resources
sector. DRA has an extensive global track record, spanning more than three decades and more than 7,500
studies and projects as well as operations, maintenance, and optimisation solutions across a wide range
of commodities.
DRA has expertise in mining, minerals and metals processing and related non- process infrastructure
including sustainability, water and energy solutions for the mining industry. DRA delivers advisory,
engineering and project delivery services throughout the capital project lifecycle from concept through to
operational readiness and commissioning as well as ongoing operations, maintenance, and shutdown
services.
DRA, headquartered in Perth, Australia, services its global customer base through 20 offices across Asia -
Pacific, North and South America, Europe, Middle East, and Africa.
About Focus Graphite
Focus Graphite Inc. is an exploration and development company that seeks to produce flake graphite
concentrate at its wholly owned Lac Knife and Lac Tétépisca flake graphite projects located in the Côte-
Nord administrative region of Québec. As part of its mission to build long- term, sustainable shareholder
value, Focus is also evaluating the feasibility of producing value- added specialty graphite products,
including battery-grade spherical graphite. Focus Graphite is a technology -oriented graphite development
company with a vision for building long- term, sustainable shareholder value. Focus also holds an equity
position in graphene applications developer Grafoid Inc. Focus is committed to operating in a socially,
environmentally and ethically responsible manner.
For more information about Focus Graphite and the Company’s Lac Tétépisca and Lac Knife projects,
please visit Focus’s website at www.focusgraphite.com or contact:
Kimberly Darlington
Communications, Focus Graphite
Judith Mazvihwa-MacLean
CFO, Focus Graphite
(613) 581-4040
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of
the TSX-V) accepts responsibility for the adequacy or accuracy of this news release.
Forward-Looking Statements
This press release contains "forward- looking information" within the meaning of Canadian securities
legislation. All information contained herein that is not clearly historical in nature may constitute forward-
looking information, including references to the plans and project of the Company such as proceeding with
production at the Company’s Project, proceeding with permitting and environmental studies at Lac Knife,
and other plans outlined in this press release. Generally, such forward-looking information can be identified
by the use of forward- looking terminology such as “potential”, “high- potential”, “expected”, “optimistic”,
“looking forward”, “moving forward”, or variations of such words and phrases or state that certain actions,
events or results "may", "could", "would" or "might". Forward- looking information is subject to known and
unknown risks, uncertainties and other factors that may cause the actual results, level of activity,
performance or achievements of the Company to be materially different from those expressed or impli ed
by such forward-looking information, including but not limited to: (i) volatile stock price; (ii) the general global
markets and economic conditions; (iii) the possibility of write- downs and impairments; (iv) the risk
associated with exploration, development and operations of mineral deposits; (v) the risk associated with
establishing title to mineral properties and assets; (vi) fluctuations in commodity prices; (vii) the risks
associated with uninsurable risks arising during the course of exploration, development and production;
(viii) competition faced by the issuer in securing purchasers, off -taker markets, clients and experienced
personnel and financing; (ix) access to adequate infrastructure to support mining, processing, development
and exploration activities; (x) the risks associated with changes in the mining regulatory regime governing
the issuer; (xi) the risks associated with the various environmental regulations the issuer is subject to; (xii)
risks related to regulatory and permitting delays; (xiii) risks related to potential conflicts of interest; (xiv) the
reliance on key personnel; (xv) liquidity risks; (xvi) the risk of litigation; and (xvii) risk management.
Forward-looking information is based on assumptions management believes to be reasonable at the time
such statements are made, including but not limited to, continued exploration activities, no material adverse
change in metal prices, exploration, and development plans to proceed in accordance with plans and such
plans to achieve their stated expected outcomes, receipt of required regulatory approval, and such other
assumptions and factors as set out herein. Although the Company has attempted to identify important
factors that could cause actual results to differ materially from those contained in the forward- looking
information, there may be other factors that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such forward-looking information will prove to be accurate, as actual results
and future events could differ materially from those anticipated in such forward- looking information. Such
forward-looking information has been provided for the purpose of assisting investors in understanding the
Company's business, operations and exploration plan s and may not be appropriate for other purposes.
Accordingly, readers should not place undue reliance on forward- looking information. Forward- looking
information is given as of the date of this press release, and the Company does not undertake to update
such forward-looking information except in accordance with applicable securities laws.