Northern Graphite updates Lac-des-Iles resource estimate, Quebec

Northern Graphite Corp. [TSXV-NGC; OTCQB-NGPHF; FSE-0NG; XSTU-0NG] reported an updated mineral resource estimate for its Lac-des-Iles mine (LDI) in Quebec. The mineral resource update was prepared by SLR Consulting (Canada) Ltd., which Northern engaged to update the mineral resource estimate that was previously prepared for the company by SLR as disclosed in the technical report dated February 2, 2022.

The company also announces that it intends to meet rising demand by moving to a seven-day-per-week operation in the second quarter, targeting annual nameplate capacity of 25,000 tonnes per year.

The new resource creates potential to extend the life of the company’s cornerstone asset and North America’s only graphite-producing mine by at least eight years, which will be confirmed and quantified through an updated mineral reserve estimate and life-of-mine plan that will be available later this quarter.

“We are very excited to announce a material increase in our resource base at LDI, just as graphite demand gains momentum from industrial users and from battery makers building for North America’s electric vehicle revolution,” said Northern CEO Hugues Jacquemin. “The company acquired LDI with its fully permitted and operational processing plant and tailings facility with a vision of extending the mine life, increasing production and developing it into a cornerstone asset. The resource and production increases represent the first step in that process, and we look forward to further exploration success and additional expansions in the future.”

The updated mineral resource estimate for LDI is based on drill hole data available as of November 2, 2023, assuming an open-pit mining scenario and a long-term average flake graphite concentrate price of US$1,550 per tonne. Mineral resources are constrained within an optimized pit shell at a cut-off grade of 2.3% graphitic carbon (Cg). Indicated mineral resources total approximately 3.29 million tonnes (Mt) at an average grade of 6.4% Cg, containing approximately 213,000 tonnes of Cg. Inferred mineral resources total approximately 1.43 Mt at an average grade of 7.4% Cg, containing approximately 106,000 tonnes of Cg. Existing stockpiles at the mine site are not included in the updated mineral resource estimate.

“We believe that when our updated mineral reserve estimate is released later this quarter we’ll be able to show that the mine life at Lac des Iles can be extended by at least eight years,” said chief operating officer Kirsty Liddicoat. “Our grades are very strong at 6.4% Cg and that translates into about 65 kilograms of graphite per tonne of mined material.”

Northern completed a Phase I drilling program within the existing LDI lease in October 2023. The program consisted of 88 holes and 7,890 metres of drilling and demonstrated significant near-surface graphite mineralization which is still open at depth. There are also 11 additional target zones that were identified by an airborne geophysical survey that are yet to be drilled.

“We believe that the Phase I drilling has only scratched the surface and that there is significant potential to expand the resources with more drilling.” said Ms. Liddicoat. “As we commence 2024, our focus turns now to the next drilling campaign to test resource potential both inside and outside the existing Pit 2, and toward expanding overall output at the mine. Planning is well advanced for the 2024 exploration program.”

Pressing Northern’s First Mover AdvantageAmid rising market demand for its graphite products, the company plans to boost production at LDI starting at the end of the first quarter by moving to a seven-days-a-week operating schedule from the current four days. This will increase the mine’s annual output to as much as 25,000 tpy from the current annualized rate of approximately

“China’s actions and the FEOC proposal have really put graphite in the spotlight, propelling it to the top of the list of difficult-to-source battery minerals,” said Jacquemin. “As the only producer of natural graphite in North America today and the foreseeable future, Northern has a first mover advantage in becoming the region’s lead supplier as the EV revolution gains momentum.”

Northern expects to become the third-largest natural graphite producer outside of China when its Namibian operations come back online. The company also has the large-scale, advanced stage Bissett Creek project in Ontario, and substantial additional measured and indicated resources in Namibia and on the Mousseau property in Quebec, which are expected to be sources of continued production growth in the future. All projects have “battery quality” graphite and are located close to infrastructure in politically stable jurisdictions.