Name of the Project
Lac Carheil graphite project.

Location
About 20 km south of Fermont, in the Côte-Nord region of Quebec, Canada.

Project Owner/s
ASX-listed critical-minerals explorer and project developer Metals Australia, through its wholly owned Canadian subsidiary Northern Resources Inc.

Project Description
The June 2026 prefeasibility study (PFS) covers the upstream development of an openpit mine and an 860 000 t/y flake graphite concentrate plant. The operation is designed to produce an average of 101 241 t/y of natural flake graphite concentrate grading 95.4% total graphitic carbon over an initial 24-year project life.

The project is underpinned by a maiden probable ore reserve of 21.51-million tonnes grading 11.14% graphitic 
carbon for 2.40-million tonnes of contained graphite.

Total mineral resources are estimated at 50-million tonnes grading 10.2% graphitic carbon for 5.1-million tonnes of contained graphite. Supporting infrastructure includes an access road, a powerline, a tailings codisposal facility, and water-management and treatment systems.

Potential Job Creation
The operation is expected to employ an initial workforce of 143 people. Employment is forecast to peak at 183 people in Year 15.

Net Present Value/Internal Rate of Return
The base case delivers a pretax net present value (NPV), at an 8% discount rate, of $553-million and an after-tax NPV of $400-million (A$572-million). The internal rate of return is estimated at 22%, with a 4.2-year payback period.

Capital Expenditure
Preproduction capital expenditure (capex) is estimated at US$346.3-million, including a US$40-million contingency. The project is expected to be eligible for up to $96.7-million in Canadian Clean Technology Manufacturing Investment Tax Credits, which could reduce effective capex to $249.6-million.

Planned Start/End Date
Production is targeted for late 2030.

Latest Developments
Critical-path metallurgical testwork and environmental field surveys for the environmental- and social-impact assessment have started. Further drilling and updated engineering, environmental and social studies are planned.

Key Contracts, Suppliers and Consultants
Lycopodium Minerals Canada (study manager and engineering consultant); DRA Americas Inc. (mining engineering consultant) GS2 Consultants (tailings and water-management systems design); Fastmarkets (price forecasts); Lonestar Technical Minerals (product markets assessment); Metpro Management Inc (metallurgical testwork); Norda Stelo and Transfert Environnement et Société (environmental and social assessments respectively).

Contact Details for Project Information
Metals Australia Ltd, tel +61 8 9481 7833 or email info@metalsaustralia.com.au.