Focus Graphite Files Lac Knife Graphite Project Feasibility Study Technical Report
Press Release
Results position Focus Graphite as a potentially unique North American supplier of high-purity natural flake graphite concentrates for use in high-performance Li-Ion batteries.
Kingston, Ontario, April 19, 2023 – Focus Graphite Inc. (TSX.V:FMS; OTCQX: FCSMF; FRANKFURT: FKC) (“Focus” or the “Company”) today announced the filing of a National Instrument 43-101 (“NI 43-101”) technical report (the “Technical Report”) in support of the Feasibility Study Update (FSU) for the Company’s Lac Knife high-grade crystalline flake graphite project located near Fermont, Québec, on the Nitassinan (ancestral lands) of the community of Innu Takuaikan Uashat mak Mani-utenam (ITUM).
The Technical Report was prepared in accordance with Canadian Securities Administrators’ NI 43-101 Standards of Disclosure for Mineral Projects and Form 43-101F1, and is available for review on SEDAR (www.sedar.com) and on Focus’ website (www.focusgraphite.com).
The FSU was prepared by DRA Global Limited with assistance from various independent technical consultants.
“With the Feasibility Study now completed, we are set to continue the process of de-risking the Project in the near to mid-term,” said Marc Roy, President and CEO of Focus. “This work includes: consultation with ITUM, the local First Nations community on whose Nitassinan Lac Knife is situated, as well as other communities and stakeholders that could be impacted by the Project; completion of the environmental and social impact assessment (ESIA) study; and guiding the Project through the formal Québec government environmental review and permitting process.”
Mr. Roy continued, In particular, the Feasibility Study opens the door to secure another level of Project financing that will enable us to complete the ESIA and government environmental review process, and then advance the Lac Knife project to the detailed engineering phase. We are currently evaluating various financing options.”
FSU highlights
The highlights of the Feasibility Study Update, as reported March 6, 2023, have been slightly adjusted but have no material affects on the profitability of the Project.
Table 1 – Lac Knife Updated Feasibility Study Financial Highlights
| Description | March 6, 2023 | April 17, 2023 |
| Pre-Tax NPV @ 8% discount rate ($M CAD) | $500.9 | $500.6 |
| After Tax NPV @ 8% discount rate ($M CAD) | $285.7 | $284.8 |
| Pre-Tax IRR (%) | 28.70% | 29.10% |
| After Tax IRR (%) | 22.4% | 22.57% |
| Life of Mine (LOM) (years) | 27 | 27 |
| Pre-Tax payback period (years) | 2.8 | 2.88 |
| After Tax payback period (years) | 3.3 | 3.38 |
| Initial Capital Expenditure (Capex) ($M CAD) | $236.5 | $236.5 |
| Operating Expenses (Opex) (Average over LOM $M CAD, per year?) | $25.9 | 25.9 |
| Average sales price of graphite concentrate 2022 (USD/t) | $1,679 | $1,679 |
Unless otherwise noted, all monetary figures presented herein are expressed in Canadian Dollars ($) with a USD/CAD conversion rate of 1.35.
Background
The FSU was conducted with engineering and estimation methods appropriate to target an accuracy of 15% that is standard and realistic for capital and operating cost estimates for this level of study, that is required prior to detailed engineering. Based on an extensive risk review exercise the contingency is 12%. Capital Expenditures in Table 2 itemize cost requirements for mine construction, processing plant, power line and all associated infrastructure estimated at $236.5 million.
Table 2 – Lac Knife Capital Expenditure ($ CAN M)
| Area | Initial Cost |
| Mine Development | 8.07 |
| Mine Equipment and Facilities | 19.66 |
| Crushing and Concentrator | 99.24 |
| Tailings Management | 22.73 |
| Infrastructure | 32.50 |
| Indirect Costs | 29.30 |
| Contingency | 25.00 |
| Total Capital Expenditure | 236.50 |
The operating costs, as reported March 6, 2023, have been slightly adjusted but have no material affects on the profitability of the Project. As shown in Table 3, the operating cost for the process area is higher than those shown in the March 6, 2023, press release as the total process operating costs were calculated on the total concentrate produced rather than the concentrate sold. However, as shown in Table 1, the total overall yearly operating cost remained the same at $25.9 million.
Table 3 – Lac Knife Operating Expenditure (27 Year Average)
$/Tonne of Concentrate
| Description | March 6, 2023 | April 17, 2023 |
| Mining | 129.76 | 129.76 |
| Processing Costs | 310.56 | 330.82 |
| Tailings Costs | 4.38 | 4.38 |
| General Administration Mine Site | 95.78 | 95.78 |
| Total Operating Costs | 540.48 | 560.75 |
Qualified Persons
The technical information within this news release was approved by Daniel Gagnon, P. Eng., Vice President Mining, Ghislain Prevost, P. Eng., Lead Mining Engineer, Jordan Zampini, P. Eng., Senior Process Engineer, and Claude Bisaillon, P.Eng., Senior Geotechnical Engineer, from DRA Global Inc., and all individuals that are Qualified Persons under NI 43-101 guidelines and all independent of the issuer.
DRA consultant Schadrac Ibrango, P.Geo. (QC), PhD, MBA, is responsible for estimating the mineral resources and has reviewed and approved the contents of this press release. Mr. Ibrango is a Qualified Person (“QP”), independent of Focus Graphite, within the meaning of NI 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.
Leon C. Botham, MSCE, P.E., P.Eng. (SK/BC/ON/NT/YT) from NewFields Canada Mining & Environment ULC was responsible for the filtered tailings storage system as well as the water management system, and has reviewed and approved the contents of this press release. Mr. Botham is a Qualified Person (“QP”), independent of Focus Graphite, within the meaning of NI 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.
Denys Vermette, Géo (QC)., M.Sc., M.Sc. A from IOS Services Géoscientifiques Inc. was responsible for the section on environmental studies presented in the Technical Report and has reviewed and approved the contents of this press release. Mr. Vermette is a Qualified Person (“QP”), independent of Focus Graphite, within the meaning of NI 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.
Mr. Marc-André Bernier, géo. (QC), P.Geo. (ON), M.Sc., Senior Geoscientist for Table Jamésienne de Concertation Minière, a consultant to the Company and a Qualified Person as defined under National Instrument (NI) 43 – 101 Standards of Disclosure for Mineral Projects has reviewed and approved the non-technical content this news release.
About DRA Global Limited
DRA Global Limited (ASX: DRA | JSE: DRA) (DRA) is a multi-disciplinary consulting, engineering, project delivery and operations management group predominantly focused on the mining and minerals resources sector. DRA has an extensive global track record, spanning more than three decades and more than 7,500 studies and projects as well as operations, maintenance, and optimisation solutions across a wide range of commodities.
DRA has expertise in mining, minerals and metals processing and related non-process infrastructure including sustainability, water and energy solutions for the mining industry. DRA delivers advisory, engineering and project delivery services throughout the capital project lifecycle from concept through to operational readiness and commissioning as well as ongoing operations, maintenance, and shutdown services.
DRA, headquartered in Perth, Australia, services its global customer base through 20 offices across Asia-Pacific, North and South America, Europe, Middle East, and Africa.
About Focus Graphite
Focus Graphite Inc. is an exploration and development company that seeks to produce flake graphite concentrate at its wholly owned Lac Knife and Lac Tétépisca flake graphite projects located in the Côte-Nord administrative region of Québec. As part of its mission to build long-term, sustainable shareholder value, Focus is also evaluating the feasibility of producing value-added specialty graphite products, including battery-grade spherical graphite. Focus Graphite is a technology-oriented graphite development company with a vision for building long-term, sustainable shareholder value. Focus also holds an equity position in graphene applications developer Grafoid Inc. Focus is committed to operating in a socially, environmentally and ethically responsible manner.
For more information about Focus Graphite and the Company’s Lac Tétépisca and Lac Knife projects, please visit Focus’s website at www.focusgraphite.com or contact:
Kimberly Darlington
Communications, Focus Graphite
[email protected]
Judith Mazvihwa-MacLean
CFO, Focus Graphite
[email protected]
(613) 581-4040
IBF4
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