Nouveau Monde Increases Its Indicated Resources to 95.8 MT at a Grade of 4.28% CG FOR Its WEST Zone Graphite Deposit – Matawinie Property Symbol: NOU (TSX Venture), OTCQX: Nmgrf, Frankfurt: NM9
NOUVEAU MONDE INCREASES ITS INDICATED RESOURCES TO 95.8 MT AT A GRADE OF
4.28% CG FOR ITS WEST ZONE GRAPHITE DEPOSIT – MATAWINIE PROPERTY
Symbol: NOU (TSX Venture), OTCQX: NMGRF, Frankfurt: NM9
June 27th, 2018 FOR IMMEDIATE RELEASE
SAINT-MICHEL-DES-SAINTS, QUEBEC – Nouveau Monde Graphite Inc. (TSX-V: NOU)
(“NMG” or “Nouveau Monde”) is pleased to announce the results of an updated pit-
constrained Mineral Resource Estimate (the “Current Resource”) concerning its West
Zone Deposit, located on the Tony claim Block, part of its Matawinie graphite Property.
Nouveau Monde’s President and CEO Eric Desaulniers commented: “Our recent work has
nearly tripled our Indicated Mineral Resources while only increasing the maximum width
of the pit envelope by 30 m.” Desaulniers adds: “Industry leading market analysis has
indicated that a global supply deficit of natural graphite is expected by 2022-23 principally
caused by the phenomenal growth in the lithium-ion battery market. With this Current
Resource, we are now working towards an optimized mining plan with a projected flake
concentrate production output of around 100,000 tonnes per year. While the parameters
used to generate the pit envelope were different than those used for the prefeasibility
resource estimate, they should favorably influence the project’s economics.”
The Current Resource is summarized in Table 1 below and is compared to the previous
pit-constrained Mineral Resource Estimate (the “Previous Resource”) first published on
a March 2, 2017, press release. The Current Resource is based on a newly acquired land
package (see July 5, 2017 press release), the properties’ Prefeasibility Study (refer to the
October 25, 2017 press release), on the diamond drilling program completed in January
2018 (refer to the March 1, 2018, press release), new geotechnical data and
hydrogeological modelling as well as future market outlook. The results presented here
will serve as the basis for a Feasibility Study, scheduled to be completed in Fall of 2018.
Table 1: Pit-Constrained Mineral Resource Estimate for the West Zone1
Mineral
Resource
Category2
Current Resource (June 27, 2018)8 Previous Resource (March 2, 2017)8
Tonnage
(Mt)5,7
Grade
(%Cg)3 Cg (Mt) Tonnage
(Mt)6,7
Grade
(%Cg)3 Cg (Mt)
Indicated 95.8 4.28 4.10 32.9 4.50 1.48
Inferred4 14.0 4.19 0.59 0.2 4.84 0.01
1 The mineral resources provided in this table were estimated using current Canadian Institute of Mining, Metallurgy
and Petroleum (CIM) Standards on Mineral Resources and Reserves, Definitions and Guidelines.
2 Mineral resources that are not mineral reserves have not demonstrated economic viability. Additional trenching and/or
drilling will be required to convert Inferred and Indicated Mineral Resources to Indicated and Measured Mineral
Resources.
3 All analyses used for the Resource Estimates were performed by ALS Minerals Laboratories and delivered as graphitic
carbon (“% Cg”), internal analytical code C-IR18.
4 Inferred Mineral Resources represent material that is considered too speculative to be included in economic
evaluations. Additional trenching and/or drilling will be required to convert Inferred Mineral Resources to Indicated or
Measured Mineral Resources.
5 Current Resource effective June 27, 2018.
6 Previous Resource published March 2, 2017.
7 The Current and Previous Mineral Resources are stated at a cut-off grade of 1.78% Cg and 2.28% Cg respectively.
8 Standards used for this resource update are the same standards produced over the course of the Prefeasibility Study
(results published October 25, 2017). The difference comes from a newly acquired land package (see July 5, 2017 press
release), the south-west extension drilled in 2018, the new hydrogeological and geotechnical information as well as the
updated market outlook.
Various characteristics of the Current Resource pit envelope are compared to the
Previous Resource pit envelope in Table 2.
Table 2. Current and Previous Resource Pit Envelope Characteristics
Pit Envelope Characteristics Current Resource
(June 27, 2018)3
Previous Resource
(March 2, 2017)3
Length (m)1 2,690 2,300
Maximum Width (m) 430 400
Surface Area (km2) 0.896 0.4826
Minimum Pit Elevation (m)2 255 390
Maximum Vertical Difference
between Pit Depth and
Original Surface Elevation (m)
240 145
Waste to Ore Ratio 1.20 :1 1.04 :1
1 Measured length is approximate.
2 Elevation is measures above sea level or “ASL”.
3 The Current Resource is constrained within an optimized pit envelope using different parameters than the Previous
Resource. Parameters used are summarized in Table 3 of this press release.
A map displaying the West Zone core drilling and trenching locations as well as a plan
view of the Current Resource is available through this link:
http://nouveaumonde.ca/wp-content/uploads/PR_West_Zone_20180627_EN.pdf
Data Sources and Current Resource Estimation Methods
The block model, used to generate the Current Resource of the West Zone deposit, is
based on a total of 105 core drill holes which produced 4,518 samples, as well as 207
samples collected from channeling work in three (3) trenches. In all, 19 mineralized
horizons encased in paragneiss units were interpreted and modelled from this data.
Mineralized material sorting was performed through an automated sorting algorithm
using research ellipsoids centred upon composites.
The indicated resource boundary study is based on the distance between drill holes. The
total thickness of the mineralized volumes is comprised in the same category. The
Indicated Resource is a continuous zone measuring approximately 2.6 km long by 175 m
wide. Drill holes are typically spaced 100 m apart or less from section to section and
spaced every 75 m or less over the sections. All resources outside this perimeter obtain
the inferred category by default.
The Current Resource block model for the West Zone was prepared by Yann Camus, P.
Eng., of SGS Canada Inc. —Geostat (“SGS Geostat”) from Blainville, Québec, using the
Genesis© mining software. Interpolation was performed using inverse square distance
(ID2) as well as different search ellipses which were adapted for the geology of the
deposit. The block model was then fed to GEOVIA’s WhittleTM software to provide an
optimized pit envelope constraining the resources. The parameters used to generate the
pit envelope were different than those used for the prefeasibility resource estimate. The
parameters used are available below in Table 3. Unlike the Previous Resource, the pit
envelope containing the Current Resource was not limited to an elevation of 390 m above
sea level following the conclusions of recent studies including updated market outlook as
well as new hydrogeological and geotechnical information.
Table 3. Current Resource Pit Envelope Generation Parameters
Parameters Values
Currency (CAD unless specified) 1.28 CAD = 1.00 USD
Block Size 5m x 5m x 5m
Specific Gravity 2.76 t/m3
Overall Slope Angle
Rock 55o
Overburden 25o
Mining Cost
Mineralized Material $3.06/t
Waste $3.46/t
Overburden $3.17/t
Mining Dilution 5%
Mining Recovery 95%
Rehabilitation Cost $0.61/t
Processing Cost $12.94/t
Transportation Cost $47.92/t
Processing Recovery 94%
G&A $1.60/t
Selling Price of Concentrate $1,124.00 USD/t –
transportation cost
NSR Royalty 2%
Concentrate Grade 97%
It is important to note that Nouveau Monde will be issuing an updated prefeasibility
technical report, completed in accordance with National Instrument (NI) 43-101, detailing
this important change within 45 days following this release. This upcoming report will lay
the groundwork for a feasibility study targeting a production of 100,000 tonnes of
graphite concentrate per year from the West Zone deposit.
The technical data included in this release was prepared by a qualified independent
expert, as defined by the 43–101 Regulation, Yann Camus, Eng., of SGS Canada Inc. —
Geostat.
About Nouveau Monde Graphite
In 2015, Nouveau Monde Graphite discovered a major and high-quality graphite deposit
on its Matawinie property, located in Saint-Michel-des-Saints, 150 km north of Montreal,
Quebec. The discovery led to the announcement of a prefeasibility study on October 25,
2017. The prefeasibility study results revealed projected graphite concentrate production
levels of 52,000 tonnes per year over a 27-year period. In the summer of 2018, NMG will
be launching its first tonnes of concentrated graphite flake manufactured in
demonstration plant. NMG’s demonstration plant has been built for a production capacity
of 2,000 tonnes of concentrated flake graphite for a two-year period.
Moreover, in a vertical integration and sustainable development perspective, the
company is planning the establishment of a large-scale graphite secondary
transformation facility, catering the needs of the booming lithium-ion battery market.
With over 60 years of experience in the world of graphite, NMG’s team develops its
projects with the utmost respect of neighboring communities, while favoring a minimal
ecological footprint. NMG’s project is privileged by direct access to the workforce and
infrastructure needed to operate its mining project, and it can also rely on an abundant,
affordable and renewable source of hydroelectricity.
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For more information:
Tristan Ménard
Executive Vice President, Capital Markets
+1 (514) 296-6339
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.
All statements, other than statements of historical fact, contained in this press release including,
but not limited to (i) the increase of Mineral Resources tonnage, (ii) the conversion of Inferred or
Indicated Mineral Resources to Measured Resources and the conversion of Mineral Resources to
Mineral Reserves , (iii) the positive impact of the foregoing on project economics, and (iV)
generally, or the “About Nouveau Monde Graphite” paragraphs which essentially describe the
Corporation’s outlook and objectives, constitute “forward-looking information” or” forward-
looking statements” within the meaning of certain securities laws, and are based on expectations,
estimates and projections as of the time of this press release. Forward-looking statements are
necessarily based upon a number of estimates and assumptions that, while considered reasonable
by the Corporation as of the time of such statements, are inherently subject to significant business,
economic and competitive uncertainties and contingencies. These estimates and assumptions may
prove to be incorrect.
Many of these uncertainties and contingencies can directly or indirectly affect, and could cause,
actual results to differ materially from those expressed or implied in any forward-looking
statements. There can be no assurance that forward-looking statements will prove to be accurate,
as actual results and future events could differ materially from those anticipated in such
statements. Forward-looking statements are provided for the purpose of providing information
about management’s expectations and plans relating to the future. The Corporation disclaims any
intention or obligation to update or revise any forward-looking statements or to explain any
material difference between subsequent actual events and such forward-looking statements,
except to the extent required by applicable law.
Further information regarding Nouveau Monde is available in the SEDAR database
(www.sedar.com) and on the Corporation’s website at: www.nouveaumonde.ca