Name of the Project
Molo graphite project.

Location
The project is located in southern Madagascar.

Project Owner/s
NextSource Materials.

Project Description
The project has proven and probable reserves of 22.44-million tonnes grading 7% carbon. Total measured and indicated minerals resources are estimated at 100.37-million tonnes grading 7.7% carbon.

An updated feasibility study has outlined a phased development approach for the project.

The first phase of production will comprise a fully operational and sustainable graphite mine, with a permanent processing plant capable of processing 240 000 t/y of ore and producing about 17 000 t/y of high-quality SuperFlake graphite concentrate.

Phase 2 incorporates the processing of 240 000 t/y of ore, producing 17 000 t/y of SuperFlake concentrate for the first two years of operation and then ramping up to 720 000 t/y of processed ore in the third year to accommodate additional sales, resulting in 45 000 t/y of SuperFlake concentrate being produced for a mine life of 30 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $237.1-million and an internal rate of return of 43.1%, with a payback of 3.4 years.

Capital Expenditure
Capital expenditure for Phase 1 will be $21-million, with Phase 2 capital expenditure being an additional $39.1-million, for a total project cost of $60.1-million.

Planned Start/End Date
Not stated.

Latest Developments
None stated.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
NextSource Materials, tel +1 416364 4911 or email info@nextsourcematerials.com.