Name and Location
Lac Knife graphite project, Quebec, Canada.

Client
Focus Graphite.

Project Description
The Lac Knife crystalline flake graphite deposit, in the Côte Nord region of Quebec, is one of the highest-grade flake graphite deposits in the world.

Results of a feasibility study on the Lac Knife project have indicated that the project is economically viable, with a base case scenario that includes a concentrator production line rate of 44 300 t/y of concentrate at an average mill feed rate of 323 670 t/y of mineral reserves over a 25-year mine life. The concentrate will grade 97.8% Cg.

Mining will be carried out by a contractor using conventional openpit methods, which includes drilling and blasting.

This will be followed by a hydraulic excavator loading a fleet of 46 t haul trucks. The mine will be operated seven months of the year and a front-end wheel loader will be used to feed the processing plant from an ore stockpile during the winter months.

Net Present Value/Internal Rate of Return
The feasibility study was based on a 25-year mine life that produced a pretax net present value of $383-million, calculated at a discounted cash flow rate of 8% pretax. The financial model has an internal rate of return of 30.1% and a capital payback period of three years.

Value
The cost of the project is estimated at $165.5-million and includes the construction of the mine, processing plant, power line and all associated infrastructure.

Duration
Not stated.

Latest Developments
Detailed engineering is planned to start this year and further analysis of cost components will continue during the detailed engineering stage.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Focus Graphite investor relations, Adrienne Mauriks, tel +1 604 559 2008 or email amauriks@focusgraphite.com.