TSX.V: LLG $1.78 -$0.02 -1.11% Volume: 101,139 June 23, 2017
projects
Project

Sign up for updates

Email Address *

 
Enter the code shown above.

Lac Guéret Graphite Project

Mason Graphite’s 100% owned Lac Guéret property is located in northeastern Quebec, about 285 km north of the main service centre of Baie-Comeau and about 660 km from Montreal.
 

What sets us apart?

OUR TEAM

- Cumulating over 50 years of true graphite experience with Stratmin/Timcal/Imerys Graphite
- Extensive processing knowledge and distribution capabilities




THE ASSET

- Mason Graphite’s management believes that Lac Guéret is one of the highest grade graphite deposits in the world and is aiming to be one of the lowest cost producers in the world




ADVANCING DETAILED STUDY ON BATTERY MATERIALS

- Team with the required experience having produced and sold, when at Imerys, various graphite and conductive carbon black products to the battery industry
- Working with the NRC “National Research Council Canada"




FINANCIAL SPONSORSHIP

- Over 20 institutional shareholders, mostly local and including government sponsored entities with mandates that are aligned with the company’s needs




SOUND SOCIAL & ENVIRONMENTAL PROJECT

- Pessamit First Nations Cooperation Agreement signed in July 2014
- Strong support from local community of Baie-Comeau
- Concentrator to be connected to hydroelectric power grid; Mine with limited footprint

Ideal Location and Access

Mason Graphite’s Lac Guéret property is located in Quebec, one of the world’s most attractive jurisdictions for mineral exploration and development. It also falls within the “Plan Nord” territory in northeastern Quebec, which is an economic development strategy launched by the Government of Quebec in May 2011 to help the progression of Quebec mining projects located north of the 49th parallel.

The Lac Guéret project consists of 215 claims covering 11,630 ha (116 km2) and is easily accessible year-round by main logging roads via highway 389.

Feasibility Study Results (September 2015)

 The Feasibility Study was prepared in partnership with several Quebec-based engineering firms: 

GoldMinds Geoservices: Mineral Resource estimate;
Met-Chem Canada Inc.: Mining and Mineral Reserve estimate;
Soutex: Process development; and
Gesmine Inc.: Economics section, based on engineering work by Hatch. 

Feasibility Study Highlights
NPV at 8% discount rate: Pre-Tax $600M; Post-Tax $352M
Internal Rate of Return (IRR):  Pre-Tax 44.1%; Post-Tax 34.3%
Payback Period:  Pre-Tax 2.3 years; Post-Tax 2.6 years     
Avg. annual graphite concentrate production:  51,900 tonnes
Avg. production cost of graphite concentrate: $376/tonne
Weighted avg. selling price (1) (in USD $1,465 (2)):  $1,905/tonne
CAPEX:  $165.9M 
Projected construction period:  13-16 months 

*Unless otherwise noted, all monetary figures related to the Feasibility Study are expressed in Canadian dollars.  
(1) FCA Baie-Comeau: Free Carrier Incoterms - Seller is responsible for the delivery to the custody of buyer's carrier. 
(2) Foreign exchange rate $0.77 USD = $1.00 CAD 

Operational Highlights
Project life of 25 years
4.7 million tonnes of ore processed at average project life grade of 27.8% Cg
Process designed for standard purity of 96% Cg in coarse products, capable of reaching up to 97.5% Cg in the same size fractions
Waste to ore stripping ratio of 0.8:1
Mineral Reserves of 4.7M tonnes grading 27.8% Cg and “in-Pit” Minerals Resources beyond the Project Life of 25 years of 58.1M tonnes grading 16.3% Cg
§ The Mineral Reserves are the basis of the 25 years Mine Life of the Feasibility Study published in Sept 2015 (amended in March 2016) and are not included in the “in-pit” Measured and indicated Mineral Resources of 58.1 Mt grading 16.3% Cg (which have an equivalent drilling definition). The mineral Reserves and the “in-pit” Mineral Resources are included in the total Measured and Indicated Mineral Resources of 65.7 Mt grading 17.2% Cg (19.1 Mt of Measured Resources grading 17.9% Cg and 46.6 Mt of Indicated Resources grading 16.9% Cg) that were reported in the Company’s press release dated December 15, 2014. The reference point for the Mineral Reserves Estimate is the mill feed. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability and were not included in the mine life or the economics of the feasibility study. Environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues may materially affect the estimate of Mineral Resources. The same issues would need to be considered when conducting an eventual economic evaluation in order to classify the In-Pit Mineral Resources as Mineral Reserves. In addition, there can be no assurance that Mineral Resources in a lower category may be converted to a higher category, or that Mineral Resources may be converted to Mineral Reserves.

Benoît Gascon, President and CEO of Mason Graphite commented “We are thrilled about the excellent results of the Feasibility Study, which represent an important milestone as the Company moves towards becoming a leader in the sector. In the two years since issuing our PEA results, our team has been deeply involved in every aspect of this study, working with all the partners from 25 different firms. These results give us, in a very detailed way, what is needed to successfully build and operate the project. All components have been derived using measured and calculated, not factored, values. Based on our extensive experience in graphite production, we are confident that they are realistic and achievable.”

Mineral Reserves and “in-Pit” Mineral Resources beyond the Project Life of 25 years

The Feasibility Study presented a project life of 25 years using the Mineral Reserves of 4.7 million tonnes. But the pit optimization study looked at a much longer mine life where the “IN-PIT Mineral Resources Beyond Project Life of 25 years” of 58.1 million tonnes grading 16.3% could be used for an eventual extension of activity. No further drilling would be necessary in order to reclassify these IN-PIT Mineral Resources as Mineral Reserves in an eventual economic evaluation but there can be no assurance that they may be converted. The same pit optimization study was able to determine the best location for the initial 25 years of project life providing a high head grade and a low waste to ore stripping ratio.

Mineral Reserves: Project Life – 1st 25 years

Ore Category Tonnes Grade (% Cg) Graphite In-Situ (t)
Proven 2,003,000 25.05 502,000
Probable 2,738,000 29.77 815,000
Proven & Probable 4,741,000 27.77 1,317,000

6% cut-off grade

In-Pit Mineral Resources Beyond Project Life of 25 years

Ore Category Tonnes Grade (% Cg) Graphite In-Situ (t)
Measured 16,929,000 16.98 2,874,000
Indicated 41,205,000 16.03 6,603,000
Measured & Indicated 58,134,000 16.30 9,478,000

6% cut-off grade

The Mineral Reserves are the basis of the 25 years Mine Life of the Feasibility Study published in Sept 2015 (amended in March 2016) and are not included in the “in-pit” Measured and indicated Mineral Resources of 58.1 Mt grading 16.3% Cg (which have an equivalent drilling definition). The mineral Reserves and the “in-pit” Mineral Resources are included in the total Measured and Indicated Mineral Resources of 65.7 Mt grading 17.2% Cg (19.1 Mt of Measured Resources grading 17.9% Cg and 46.6 Mt of Indicated Resources grading 16.9% Cg) that were reported in the Company’s press release dated December 15, 2014. The reference point for the Mineral Reserves Estimate is the mill feed. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability and were not included in the mine life or the economics of the feasibility study. Environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues may materially affect the estimate of Mineral Resources. The same issues would need to be considered when conducting an eventual economic evaluation in order to classify the In-Pit Mineral Resources as Mineral Reserves. In addition, there can be no assurance that Mineral Resources in a lower category may be converted to a higher category, or that Mineral Resources may be converted to Mineral Reserves. 

Exploration and Geology

To date, Mason Graphite has identified two graphite zones on its Lac Guéret property: the GC Zone and the GR Zone.

GC Zone - Graphite mineralization in the GC zone has been mapped on strike up to 1.2 km and at width up to 400 m. This zone has excellent mineral resource growth potential as the mineralization remains open to the north east, north west, and at depth.

GR Zone - Graphite mineralization in the GR zone has been identified on an area of up to 1 km and up to 110 m wide. The company intends to conduct a drilling program in this zone following proper definition drilling of the GC zone. Further drilling in this zone is expected to contribute to mineral resource growth.

 

Lac Guéret Project History

Acquisition Terms with Cliffs Resources

US$14,000,000 total acquisition cost for 100% of the project

  • US$7,500,000 payment completed in 2012
  • US$2,500,000 payment completed in 2015
  • US$4,000,000 payment completed in 2017

Security interests that had been registered over the property of the Company to secure payment of the mining claims are in the process of being discharged.

No remaining legacy interest exists; no royalties.

Stay in Touch

Contact Us

HEAD OFFICE
3030 Le Carrefour blvd., Suite 600
Laval, QC H7T 2P5
+1 (514) 289 3580
INVESTOR RELATIONS
T +1 (647) 801 7273
E info@masongraphite.com

Sign up for updates

Email Address *

 
Enter the code shown above.