Canadian graphite developer Abasca confirms promising early economics for Loki
TSX-V-listed Abasca Resources highlights in an independent preliminary economic assessment (PEA) on the Loki flake graphite deposit, in Saskatchewan, the potential for a long-life, 2 750-t/d openpit mining operation.
The PEA envisions a 19-year mine life, averaging production of 66 500 t/y of graphite concentrate - for 1.2-million tonnes of payable graphite over the life-of-mine.
Notably, Abasca says the project's scale and longevity provides exposure to multiple graphite price cycles.
The Loki deposit currently has a net present value estimation of $130-million and a 16.7% internal rate of return, with the potential to generate $662-million of after-tax free cashflow at base case graphite prices of $1 450/t. The payback period is estimated to be 4.7 years, with the initial capital expenditure on the project estimated at $216-million.
Abasca will now shift its focus to acquire the technical data required for a feasibility study on the project, as well as obtaining the necessary permits to support future project development.
"Loki has continued to exceed our expectations. We are pleased to reach this significant milestone in our fast‑track journey to develop the deposit and to vest the staged project value.
"The PEA also provides Abasca with the technical data needed to support financing and offtake strategic processes, while advancing a long‑life graphite development project that aligns with our vision of establishing a reliable, long‑term source of graphite to support the federal and provincial governments' critical minerals supply chain security strategies," says Abasca president and CEP Dawn Zhou.
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