Increased graphite pricingThe chart below gives spot graphite prices in China from about a year ago, but the PEA indicates higher graphite pricing as follows;
Grade of 28% x 85% recovery = 24% recovered = $137/t recovered
To produce one tonne of concentrate @ 94% C requires (94/24) = 3.9 tonnes of ore
Therefore, old pricing would give concentrate price of $137/t x 3.9 = US $540/t
However, the PEA uses concentrate pricing of US $1100/t @ 94% C which means that pricing is double what the chart below indicates. This means that the current ore value for the high grade core zone at Lac Gueret is about US $300/t and $190/t over the life of the mine. Considering the super low strip ratio of 1.3:1, the large resource (24 years) and the fact that the site already has good road access and has a great big honkin hydro dam located just down the road, its pretty unbelievable that it’s taken this long to get this mining project underway.
Mesh
size | Price/t
(US$) | Lac Gueret; 49 % Mason, Grade 28%
(616 lbC/t) | Nouveau Monde
(Matawinie) 4.3%
(97 lbC/t) | Northern Graphite
(Bissett) Grade 2.1%
(46 lbC/t) |
| | | % | lb/t | $/t | % | lb/t | $/t | % | lb/t | $/t |
| -32 | $6200 | | | | | | | 16 | 7 | 22 |
| -50 | 1200 | 13 | 80 | 48 | 20 | 19 | 11 | 42 | 19 | 11 |
| -80 | 500 | 16 | 99 | 25 | 32 | 31 | 8 | 30 | 14 | 4 |
| -100 | 490 | 14 | 86 | 22 | 34 | 33 | 8 | 12 | 6 | 2 |
| fines | 375 | 57 | 351 | 66 | 10 | 10 | 2 | nil | | |
| | Ore value | Total | $161/t | | Total | $29/t | | Total | $39/t |