Northern Graphite Third Quarter Operational and Development Project Update
Northern Graphite Third Quarter Operational
and Development Project Update
Ottawa, Ontario--(Newsfile Corp. - November 9, 2022) - Northern Graphite Corporation
(TSXV: NGC)
(OTCQB: NGPH) (FSE: ONG) (XSTU: ONG)
(the "
Company
" or "
Northern
") is pleased to provide a
third quarter update on its operations at the Lac des Iles ("LDI") Quebec graphite mine and the
Okorusu/Okanjande project in Namibia
as well as its plans to expand mine concentrate production and
build the capacity to upgrade it into battery anode material ("BAM") in North America and Europe.
Lac des Iles
The LDI operation continued to perform well in the third quarter with 53,263 tonnes of ore milled at an
average feed grade of 6.4% graphite. Recovery was 89.3% resulting in concentrate production of 3,068
tonnes with an average grade of 96.9% (versus 96.0% in the previous 2 months), and a flake size
distribution of 13.5% +50 mesh, 22.3% -50 by +80 mesh, 20.5% -80 by +150 mesh and 43.7% -150
mesh. There was a significant drop in the strip ratio to 4.4:1 resulting in reduced mining and hauling
costs per tonne of ore mined.
A scheduled annual two week shutdown was implemented during
July/August to allow for planned maintenance in the plant on key items of process equipment and minor
repairs to some support structures.
Lac des Iles Q3 Highlights include:
Sales
1
Tonnes shipped
2,163
Tonnes sold
2,184
Sales (US$)
3,436,144
Average selling price (US$ per tonne)
1,573
Operations
Tonnes mined (ore + waste)
284,896
Tonnes of ore processed
53,263
Tonnes of graphite concentrate produced
3,068
Average concentrate grade
96.9%
Process plant recovery
89.3%
Other
No lost time accidents
No serious environmental incidents
1
.
All figures are preliminary and may be subject to material, quarter end closing adjustments.
Sales have been converted to USD from the CAD ledger using average monthly FX
Hugues Jacquemin, CEO, commented that: "Our third quarter performance demonstrates that following
the acquisition of Imerys SA's natural graphite division Northern has successfully established itself as the
only North American graphite producer and a company with industry leading production growth
prospects.
As a result, we are ideally positioned to benefit from continued EV demand growth and US
and Canadian government support for the establishment of secure, local, ESG compliant supply chains
for critical minerals including the conversion of mine concentrate to battery anode material."
Namibian Operations Update
The capital program leading to the restart of the Namibia operation continued on schedule during the
third quarter. Highlights include successful re-commissioning of the existing PLC system within the plant
and the introduction of water through much of the flotation circuit. Work also commenced on the
replacement of piping around the flotation section and a redundant ball mill was removed to make way
for a new scrubber due on site early in 2023. All long-lead items of equipment have been ordered and
detailed engineering for the new grinding circuit is well advanced. The use of a "dry tailings" disposal
system is being investigated which has the potential to reduce both capital costs and water
consumption.
The local management team has been boosted by the appointment of a Plant Manager and a Support
Services Manager and the Namibian based Group Process Manager and Vice President Human
Resources have been included in Northern's corporate staff. Staffing up of the Health, Safety and
Environment and accounting groups has also progressed and there are now 38 permanent employees
engaged, all sourced within Namibia.
Northern has adopted initiatives to empower small businesses operating in Otjiwarongo and to provide
on the job training opportunities for apprentices from credible vocational training institutions in Namibia.
The start-up activities, the subsequent construction, and the improvement of the processing plant at
Okorusu present an excellent opportunity for apprentices to receive intensive on-the-job training in their
respective trades, and for small contractors to gain experience operating in a world-class construction
environment. As part of its Corporate Social Responsibility investment drive Northern has committed to
internship contracts with ten final year apprenticeship students in various technical fields from the
Namibia Institute of Mining and Technology. During this 12-month period each apprentice is assigned an
experienced coach and taken through intensive training in their respective trade. A monthly allowance is
provided to each apprentice during the internship after which Northern plans to introduce a new cohort of
students annually.
Mine Development Projects
On
October 5
th
Northern announced the
acquisition of a 100 per cent interest in the Mousseau West
Graphite Project, a key component in its plans to extend the life of Lac des Iles after the existing pit is
mined out and thus ensure continued employment and economic benefits for the Antoine-Labelle
Regional Municipality and the Province of Quebec. With ore from Mousseau West, Northern believes the
LDI plant can produce up to 25,000 tonnes per year ("tpy") of concentrate with a seven day operating
schedule. In addition, the Company continues to identify and evaluate other potential sources of ore in
the area.
During the quarter work continued on advancing the Bissett Creek, Ontario project in preparation for
raising funding to finance its development. The Company is finalizing major permits and negotiating
agreements with First Nation groups as well as updating the feasibility study with an initial production
target of 40,000 tpy for phase 1 of operation. The ultimate production capacity is in the order of 100,000
tpy.
Northern has continued its dialogue with Federal and Provincial governments to obtain support to
develop a mine which will be part of an Ontario mine to market supply strategy supporting the production
of Battery Anode Materials.
In Namibia, Northern has prepared a statement of work for its large Okanjande development project
which has the potential to produce up to 150,000 tpy. It will be seeking quotations from several
engineering firms to prepare a Preliminary Economic Assessment for the project which will form the
basis to start seeking financing for the project.
Battery Materials Development
Northern is aggressively advancing its strategy of upgrading mine concentrate into anode material for
the Li ion Battery and EV markets. Ongoing testing of graphite from the Company's projects, both
internally and by potential partners, continues to demonstrate that they are ideally suited for battery
applications in terms of milling, shaping, purification, coating and electrochemical properties.
The Company is actively involved in discussions and negotiations with technology and OEM partners in
both the US and Europe who want to collaborate with a quality supplier of graphite that has both current
production and the capacity to support future growth.
These discussions center on volume requirements
and the timing thereof, and plans for downstream conversion facilities in both North America and
Europe.
Discussions are also being held with various Government organizations at both the federal and
provincial level to gain support to speed up the development of the Battery Anode Supply chain, with a
particular focus on Canada, in Ontario and Quebec.
Other Downstream Development Activities
In addition to the Battery Materials market, Northern has continued to expand its presence in various
other downstream segments through its existing customer base.
A particular focus is on Graphene
applications and the use of graphite to provide enhanced thermal and electrical properties in a variety of
high value composite applications. The Company is having ongoing discussions with customers and
other companies in this space that are looking for support to develop these markets.
As the only graphite
producer in North America and on target to become the third largest outside of China, Northern is well
positioned to invest in these new downstream markets and to support their growth.
About Northern Graphite
Northern is a Canadian, TSXV listed company that is focussed 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 targets becoming the
third largest outside of China when its Namibian operations come back online in mid 2023.
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.
About Graphite
Graphite is a natural, pure form of carbon.
It is not a carcinogen and because it is not burned, it is not a
source of CO
2
.
Graphite has many industrial uses as a lightweight reinforcement, conductive additive
and fire retardant.
It has come to prominence because it is the largest component of a lithium-ion battery
(and an important one in fuel cells), and it requires the largest production increase of any battery mineral
to meet forecast EV demand. And China dominates production and processing.
For these reasons it is
recognized as a critical mineral by the US, EU and Canada.
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 at
(613) 271-2124.
YouTube
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 Company's intentions with respect to bringing its Namibian operations back on line
and to advancing its developments projects to production, and developing the capacity to
manufacture value added products. 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 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.
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