Northern Graphite rallies on Quebec resource estimate

Northern Graphite Corp. [TSXV-NGC; OTCQB-NGPHF] has released a resource estimate for its Mousseau property, an asset that has the potential to expand production and extend the life of the company’s Lac des Iles graphite mine in Quebec.

The company said it is planning to complete a preliminary economic assessment (PEA) at Mousseau, which is located about 80 kilometres from Lac des Iles and ranks as the company’s fourth significant graphite project.

According to the latest estimate, Mousseau contains 2.8 million tonnes of 7.9% graphite or 223,079 tonnes of graphite.

Northern Graphite shares advanced on the news, rising 4.3% or $0.01 to 24 cents. The shares are currently trading in a 52-week range of 70 cents and 20.5 cents.

Northern Graphite was focused on its Bissett Creek project in Ontario until its recent acquisition of a 100% interest in two graphite mines from French industrial minerals company Imerys Group for US$40 million, a move that Northern Graphite described as “transformational” for the company.

Those assets included the producing Lac des Iles graphite mine and the Okanjande graphite deposit/Okorusu processing plant in Namibia. The Namibian project was held by Imerys and a joint venture partner.

The Mousseau property (previously known as Mousseau West) was acquired in October 2022. In March 2023, the company increased its land package via the acquisition of the neighbouring Mousseau East property, resulting in a total land package of 590.57 hectares.

“This report confirms the addition of almost 3.0 million tonnes of measured and indicated graphite resources to the company’s portfolio and supports the long-term growth strategy of leveraging Lac des Iles’ permitted plant and tailings facility to bolster our position as the only significant producer of natural graphite in North America,’’ said Northern Graphite Chief Operating Officer Kirsty Liddicoat. “Early test work indicates concentrate grades of +95% and recovery of 90%,’’ she said. “We believe the next phase of drilling will expand resources further at Mousseau.’’

Northern Graphite is aiming to become a long-term, sustainable, integrated mine-to-market-to-battery supplier to North America’s electric vehicle revolution, energy transition and march to Net Zero by 2050. In keeping with that strategy, the company is planning to start construction in 2026 on a 200,000 tonne-per-year battery anode material plant in Baie-Comeau, Quebec.

Graphite is the anode material in a lithium-ion battery and is the single largest component by weight. There are no substitutes, and almost all of it comes from China So, if electric vehicle manufacturers like Tesla Motors Ltd. [NASDAQ-TSLA] and Volkswagon succeed in meeting just a fraction of their widely publicized sales targets, it goes without saying that more graphite mines will be needed to support the required lithium-ion battery production.