{"id":1141173,"date":"2019-09-30T14:10:41","date_gmt":"2019-09-30T19:10:41","guid":{"rendered":"https:\/\/www.mining.com\/?p=1003228"},"modified":"2019-09-30T14:10:41","modified_gmt":"2019-09-30T19:10:41","slug":"nextsource-announces-updated-fs-for-madagascar-graphite-project","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1141173","title":{"rendered":"NextSource announces updated FS for Madagascar graphite project"},"content":{"rendered":"<p>Toronto-based NextSource Materials&nbsp;(TSX:NEXT) has published results of an <a rel=\"noreferrer noopener\" aria-label=\"updated feasibility study (opens in a new tab)\" href=\"http:\/\/www.nextsourcematerials.com\/posts\/nextsource-materials-releases-new-feasibility-study-incorporating-phased-buildout-in-preparation-of-mine-financing\/\" >updated feasibility study<\/a> for its flagship Molo graphite project in Madagascar, showing increased project build cost due to equipment inflation.<\/p>\n<div class='d-flex justify-content-center'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>An update on the feasibility study published in 2017, the new FS takes into account updated mine capital equipment and mining costs, as well as current 12-month rolling flake graphite pricing on a free-on-bard (FOB)\u00a0China basis supplied by commodities research firm Benchmark Minerals Intelligence.<\/p>\n<p>To maintain a first-mover competitive advantage and to appropriately plan for future market demand, the FS was designed to provide a flexible mine development approach that comprises an all-modular build solution, the company says.<\/p>\n<p>NextSource currently has an offtake agreement in place with a Japanese trader and is in the process of formalizing an additional sales agreement with a European trader. The FS was undertaken to include two phases in order to account for offtakers\u2019 demand for the company\u2019s SuperFlake graphite concentrate.<\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p> NextSource currently has an offtake agreement in place with a Japanese trader and is in the process of formalizing an additional sales agreement with a European trader<\/p>\n<\/blockquote>\n<\/figure>\n<p>Phase 1 of the project will consist of a fully operational and sustainable graphite mine with a permanent processing plant capable of processing 240,000 tonnes of ore and producing about 17,000 tonnes of high-quality SuperFlake annually. The updated build cost of the fully modular process plant increased from the $18.4 million reported in the 2017 FS to $21 million.<\/p>\n<p>Phase 2 incorporates the processing of 240,000 tonnes of ore for each of the first two years and then ramping up to 720,000 tonnes a year in the third year to accommodate additional sales, resulting in a total of 45,000 tonnes of SuperFlake concentrate being produced annually over a 30-year mine life. <\/p>\n<p>Costing for Phase 2 is based on the addition of two modules of the beneficiation plant with a proportional increase in mining and infrastructure costs. The capital mine cost for Phase 2 will be $39.1 million, for a total project cost (Phase 1 and Phase 2) of $60.1 million.<\/p>\n<p>In addition, the company notes that discussions with buyers have indicated their preference is to purchase Molo graphite concentrate at the local Madagascar port at FOB China prices. <\/p>\n<p>As such, the FS operating costs (opex) include the all-in FOB cost to ship concentrate to the local Port of Fort Dauphin. The project\u2019s Phase 1 opex is currently estimated at $565.93\/t and Phase 2 at $514.17\/t. <\/p>\n<p>Shares of NextSource Materials were up over 14% on Monday. The graphite miner has an approximate market cap of C$20.3 million.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The new feasibility study takes into account updated mine capital equipment and mining costs.<\/p>\n","protected":false},"author":88,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[369],"tags":[43],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1141173"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/88"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1141173"}],"version-history":[{"count":3,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1141173\/revisions"}],"predecessor-version":[{"id":1141178,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1141173\/revisions\/1141178"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1141173"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1141173"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1141173"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}