Northern Graphite Files Preliminary Economic Assessment for Okanjande/Okorusu Project in Namibia
Northern Graphite Files Preliminary Economic
Assessment for Okanjande/Okorusu Project in
Namibia
Ottawa, Ontario--(Newsfile Corp. - August 24, 2022) - Northern Graphite Corporation
(TSXV: NGC)
(OTCQB: NGPHF) (FSE: 0NG) (XSTU: 0NG)
(the "
Company
" or "
Northern
") announces that it has
filed a technical report relating to the preliminary economic assessment ("PEA") of its
Okanjande/Okorusu graphite project in Namibia. The technical report, entitled "Okanjande Graphite
Project - Preliminary Economic Assessment Study Report" is effective July 1, 2022, has been prepared
for Northern in accordance with National Instrument 43-101 -
Standards of Disclosure for Mineral
Projects
by CREO Engineering Solutions (Namibia) with contributions from Knight Piesold Consulting
(Namibia) and MSA Group (South Africa), and is available on SEDAR (
www.sedar.com
) under
Northern's issuer profile.
Northern's Lac des Iles, Quebec mine is the only significant graphite producer in North America and the
Company will become the third largest non Chinese producer when its Okanjande/Okorusu operation
comes back online.
The key results of the PEA as presented below, were previously announced in the
Company's news release of
July 11, 2022
,
and are supported by the disclosure in the technical report.
The PEA concludes that Okanjande/Okorusu can be back in operation by mid 2023
Average production will be 31,000 tonnes per annum of graphite concentrate
C1 production costs of US$775 per tonne
Post Tax IRR of 62%
Post Tax NPV of US$65M and a payback of under two years based on a 10-year mine life and a
weighted average graphite price of US$1,500/tonne
Average carbon content over all size fractions of 96%
The Okanjande resource presents the opportunity to build a large new processing plant at the mine
site with the capability of producing 100,000-150,000tpy of graphite concentrate.
Further to the Company's news release of July 11, 2022, the Company wishes to clarify that mineral
resources that are not mineral reserves do not have demonstrated economic viability. While the PEA
does not include inferred resources, the PEA is preliminary in nature and there is no certainty that the
results of the PEA will be realized.
The Okanjande/Okorusu graphite project was in production from August 2017 until October 2018 when
previous owners placed it on care and maintenance due to start-up issues with the processing plant
which did not meet design specifications.
The PEA is largely based on the Company's plan to correct
those issues and bring the operation back into production.
CREO Engineering Solutions (Namibia) is
currently engaged in implementing an EPCM program which includes the installation of new milling
circuits and which is on schedule for completion by mid 2023.
The Company also has 28 employees on
site who are involved in rehabilitating the plant and getting it ready for the restart of operations.
For
additional details on the Okanjande/Okorusu project and the PEA, please refer to the technical report.
About Northern Graphite
Northern Graphite is a Canadian company, listed on the TSX Venture Exchange that is focused on
becoming a world leader in producing natural graphite and upgrading it into high value products critical
to the green economy including anode material for LiBs/EVs, fuel cells and graphene, as well as
advanced industrial technologies.
Northern is the only significant graphite producing company in North America and will become the third
largest outside of China when its Namibian operations come back online.
The Company also has two
large scale development projects, Bissett Creek in Ontario and Okanjande in Namibia, that will be a
source of continued production growth in the future.
All projects have "battery quality" graphite and are
located close to infrastructure in politically stable countries.
Qualified Person
Gregory Bowes, B.Sc. MBA P.Geo
is a "qualified person" as defined under NI 43-101 and has reviewed
and approved the content of this news release.
For additional information
Please visit the Company's website at
http://www.northerngraphite.com/investors/presentation/
, the
Company's profile on
www.sedar.com,
our
Social Channels
listed below or contact the
Company/Gregory Bowes, CEO, at (613) 241-9959.
YouTube
Note to United States Investors
This news release has been prepared in accordance with the requirements of the securities laws in
effect in Canada, which differ from the requirements of United States securities laws. Canadian
reporting requirements for disclosure of mineral projects are governed by National Instrument 43-101 -
Standards of Disclosure for Mineral Projects
. For this reason, information contained in this news
release in respect of the Okanjande/Okorusu graphite project may not be comparable to similar
information made public by United States companies subject to the reporting and disclosure
requirements under the United States federal securities laws and the rules and regulations thereunder.
This news release contains certain "forward-looking statements" within the meaning of applicable
Canadian securities laws. Forward-looking statements and information are frequently characterized by
words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential",
"possible" and other similar words, or statements that certain events or conditions "may", "will",
"could", or "should" occur. Forward-looking statements in this release include statements regarding,
among others; the results of the PEA including the timing and amount of estimated future production
and costs of production, and other project opportunities. All such forward-looking statements are
based on assumptions and analyses made by management based on their experience and
perception of historical trends, current conditions and expected future developments, as well as other
factors they believe are appropriate in the circumstances. However, these statements are subject to a
variety of risks and uncertainties and other factors that could cause actual events or results to differ
materially from those projected including, but not limited to the possibility that results of work will not
fulfil expectations and realize the perceived potential of the Company's projects; changes in project
parameters as plans continue to be refined; unexpected changes in laws, rules or regulations, or their
enforcement by applicable authorities; the failure of other parties to perform as agreed; social or
labour unrest; changes in commodity prices; unexpected failure or inadequacy of infrastructure and
the failure of ongoing and contemplated studies to deliver anticipated results or results that would
justify and support continued studies, development or operations. Readers are cautioned not to place
undue reliance on forward-looking information or statements.
Although the forward-looking statements contained in this news release are based on what
management believes are reasonable assumptions, the Company cannot assure investors that
actual results will be consistent with them. These forward-looking statements are made as of the date
of this news release and are expressly qualified in their entirety by this cautionary statement. Subject
to applicable securities laws, the Company does not assume any obligation to update or revise the
forward-looking statements contained herein to reflect events or circumstances occurring after the
date of this news release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/134731