Montreal, Quebec, August 3, 2018 – SRG Graphite Inc. (TSXV: SRG) (“SRG” or the “Company”) today announced that it has filed, on August 2, 2018, its National Instrument 43-101 (“NI 43-101”) Preliminary Economic Assessment study (“PEA”) for the development of its Lola graphite project in the Republic of Guinea, West Africa, on SEDAR, as reported in its news release dated July 10, 2018.
Highlights of the Lola graphite PEA:
- Production of 50,200 tons of graphite concentrate per year over a 16-year mine life
- Capital costs of $105 million (“M”) including contingency of $15M
- Operational costs of $372/tonne (“t”) of concentrate and $130/t of transport
- Pre-tax NPV (8%) of $204M (post-tax NPV (8%) of $121M) at an average sales price of $1,328/t
- Project pre-tax IRR of 35% and post-tax IRR of 25%
- Finished grade of over 94% and up to 98% over all size fractions
- Strip ratio of 0.39
The NI 43-101 PEA was prepared by Montréal-based Met-Chem, a division of DRA Americas Inc. (“Met-Chem/DRA”). All dollar figures are in United States dollars.
The Lola Graphite Project is under the direct supervision of Raphaël Beaudoin, P.Eng., Dr. Marc-Antoine Audet, P.Geo, Ph.D (Geology) is the Qualified Person (“QP”) as defined by National Instrument 43-101.
The NI-43-101 Technical Report may be referenced on SRG’s website at www.srggraphite.com and on SEDAR at www.sedar.com.
About Met-Chem/DRA
Met-Chem, a division of DRA Americas Inc., was originally established in 1969 as a consulting engineering company, headquartered in Montreal, and provides a wide range of technical and engineering services. Met-Chem is well recognized for its capabilities in mining, geology and mineral processing and has a talented team of engineering, technical and project management personnel with experience in North America, Latin America, Europe, West Africa and India. DRA is a multidisciplinary global engineering group that originated in South Africa and delivers mining, mineral processing, energy, water treatment and infrastructure services from concept to commissioning, as well as comprehensive operations and maintenance services for the mineral resources, water, agriculture and energy sectors. DRA has offices in Africa, Australia, Canada, China, India and the United States.
ABOUT SRG
SRG is a Canadian-based company focused on developing the Lola graphite deposit and the Gogota cobalt-nickel-scandium deposit located in the Republic of Guinea, West Africa. SRG is committed to operating in a socially, environmentally and ethically responsible manner.
For additional information, please visit SRG’s website at www.srggraphite.com.
For more information contact:
| Ugo Landry-Tolszczuk Tel: +1 (514) 679-4196 Email: [email protected] |
Benoit La Salle, FCPA FCA Tel: +1 (514) 951-4411 Email: [email protected] |
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This press release contains “forward-looking information” within the meaning of Canadian securities legislation. All information contained herein that is not clearly historical in nature may constitute forward-looking information, including references to the plans and project of the Company such as proceeding with production at the Company’s Lola Project, proceeding with exploration activities on its permits including Lola and Gogota. Generally, such forward-looking information can be identified by the use of forward-looking terminology and phrases or state that certain actions, events or results “may”, “could”, “would” or “might”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.
Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is given as of the date of this press release, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws. Additional information on these and other factors that could affect SRG’s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).