Montreal, Quebec, September 7, 2018 – SRG Graphite Inc. (TSXV: SRG) (“SRG” or the “Company”) reports that it is reissuing its National Instrument 43-101 (“NI 43-101”) Preliminary Economic Assessment study (“PEA”) for the development of its Lola graphite project in the Republic of Guinea, West Africa.
The cut-off grade for the base case at section 14 of the original NI 43-101 PEA has been modified to 1.64% from 3%, to be consistent with the rest of the document’s data. This change has no impact whatsoever on any of the numbers or figures provided in the original PEA, including preliminary economic figures or results.
Also, Mr. Sivanesan (Desmond) Subramani, Principal Consultant at Caracle Creek International Consulting MINRES (Pty) Ltd (CCIC MinRes), an independent qualified person, has confirmed the work of Dr. Marc-Antoine Audet, P.Geo. and SRG’s Lead Geologist and taken responsibility for those sections of the original NI 43-101 PEA for which Dr. Audet was responsible. Mr. Subramani has rigorously verified the resource model and reapproved the resource estimate without material changes.
Highlights of the Lola graphite PEA:
- Production of 50,200 tonnes of graphite concentrate per year over a 16-year mine life;
- Capital costs of $105 million (“M”) including contingency of $15M;
- Operational costs of $372/tonne (“t”) of concentrate and $130/t of transport;
- Pre-tax NPV (8%) of $204M (post-tax NPV (8%) of $121M) at an average sales price of $1,328/t;
- Finished grade of over 94% and up to 98% over all size fractions;
- Strip ratio of 0.39.
The Amended NI-43-101 Technical Report is available on SRG’s website at www.srggraphite.com and on SEDAR at www.sedar.com.
About Met-Chem/DRA
Met-Chem, a division of DRA Americas Inc., was originally established in 1969 as a consulting engineering company, headquartered in Montreal, and provides a wide range of technical and engineering services. Met-Chem is well recognized for its capabilities in mining, geology and mineral processing and has a talented team of engineering, technical and project management personnel with experience in North America, Latin America, Europe, West Africa and India. DRA is a multidisciplinary global engineering group that originated in South Africa and delivers mining, mineral processing, energy, water treatment and infrastructure services from concept to commissioning, as well as comprehensive operations and maintenance services for the mineral resources, water, agriculture and energy sectors. DRA has offices in Africa, Australia, Canada, China, India and the United States.
ABOUT SRG
SRG is a Canadian-based company focused on developing the Lola graphite deposit and the Gogota cobalt-nickel-scandium deposit located in the Republic of Guinea, West Africa. SRG is committed to operating in a socially, environmentally and ethically responsible manner.
For additional information, please visit SRG’s website at www.srggraphite.com.
For more information contact:
| Ugo Landry-Tolszczuk Tel: +1 (514) 679-4196 Email: [email protected] |
Benoit La Salle, FCPA FCA Tel: +1 (514) 951-4411 Email: [email protected] |
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