Name of the Project
Molo graphite project.

Location
Tulear region of south-western Madagascar.

Client
NextSource Materials (previously Energizer Resources).

Project Description
An updated feasibility study on the Molo graphite project has proven positive.
The project has proven and probable reserves of 22.44-million tonnes grading 7.02 g/t.

The updated feasibility study proposes an openpit, fully-modularised mining operation using a 100% owner-operated fleet that will process an average of 240 000 t/y of ore mill feed, which will be processed on site.

The processing plant will produce an average of 17 000 t/y of finished SuperFlake concentrate. 
The plant will comprise conventional crushing, milling and flotation circuits followed by concentrate filtering, drying and screening.
Phase 1 will use dry-stack tailings, which will eliminate the need for a wet tailings facility and is designed to accommodate the run-of-mine tonnage for the 30-year life-of-mine. 

This is based on a co-disposal strategy where the finer tails are deposited with a coarse mining waste product that optimises the waste footprint and environmental impact. A wet tailings facility is not required at the Phase 1
tonnage, but feasibility level designs have been completed for a tailings dam, which will be required at higher tonnages. 
This has been done to ensure that environmental permitting is in place for the ultimate production throughput and scaling delays are minimised.

Jobs to Be Created
The project will result in the creation of about 170 direct jobs.

Net Present Value/Internal Rate of Return
Phase 1 has a pretax net present value, at an 8% discount rate, of $34-million and an internal rate of return of 21.6%, with a payback of
4.2 years.

Value
Total capital expenditure has been estimated at $21.5-million.

Duration
Phase 1 construction will take about nine months to complete.

Latest Developments
Based on the positive results of the updated feasibility study, NextSource will be initiating an economic analysis that will incorporate its modular approach for the Phase 2 expansion, which will produce approximately 50 000 t/y of SuperFlake.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
NextSource Materials,  tel +1 416 364 4911 or  email info@nextsourcematerials.com.