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Mason Graphite JV partner Nouveau Monde Graphite files PEA for Uatnan mining project in Québec

Published: 06:53 02 Mar 2023 EST

Graphite samples

Mason Graphite Inc (TSX-V:LLG, OTCQX:MGPHF) said its joint venture partner Nouveau Monde Graphite Inc (TSX-V:NOU) (NMG) has filed the preliminary economic assessment (PEA) for the Uatnan mining project located in Québec, Canada.

The PEA, conducted by engineering firms BBA Inc and GoldMinds Geoservices, was carried out in collaboration with Mason Graphite. The Uatnan mining project is currently one of the largest projected natural graphite productions being developed in the world. It leverages the Lac Guéret deposit wholly owned by Mason Graphite and is subject to an investment agreement and option and joint venture agreement with NMG.

“The market is actively searching for alternative sources of graphite, in significant volumes, to reduce its dependence on Chinese-controlled supply chains. NMG's integrated operating model, from ore to battery materials, caters to western world's EV and battery manufacturers with a turnkey, scalable, and ESG-driven production,” Arne H Frandsen, chair of NMG, said in a statement.

READ: Mason Graphite says preliminary economic assessment of Uatnan Mining project in Quebec showcases one of the largest graphite projects in development

“The Uatnan mining project fits perfectly into the company's development plan, providing a large resource to complement our Phase-2 Matawinie Mine and Bécancour Battery Material Plant. Now more than ever, NMG is demonstrating its leadership in striving to establish North America's largest natural graphite production to serve the energy transition," he added.

The PEA shows production volumes targeting approximately 500,000 tonnes of graphite concentrate per annum over a 24-year life of mine.

Potential

NMG and its consultants revisited the fundamentals for the property development and the design of the project has been tailored to the needs of the battery and electric vehicle (EV) market, orienting production for beneficiation in order to produce active anode material.

The Uatnan mining project would be operated as a conventional open pit with a concentrator near the deposit. In line with NMG's responsible mining approach, plans include considerations for high standards in term of tailings management, progressive site closure with backfilling of the pit and a transition to fleet electrification.

The PEA shows that the Uatnan mining project is technically feasible as well as economically viable, the company said. As the natural flake graphite is expected to enter a structural deficit in 2023 due to the continued growth of the lithium-ion battery sector, conditions are favorable for commercializing production at the project.

“On the basis of these positive results, NMG intends to launch an updated feasibility study in compliance with the option and joint venture agreement signed with Mason Graphite,” the company added.

NMG is committed to extending its approach of open and proactive engagement with Indigenous Peoples and local stakeholders to the Uatnan mining project and plans to maintain a transparent dialogue with the Innu First Nation of Pessamit as it advances the project.

NMG aspires to become a strategic supplier to the world's leading battery and automobile manufacturers, providing high-performing and reliable advanced materials while promoting sustainability and supply chain traceability.

Canada-based Mason Graphite focuses on seeking investment opportunities. Its strategy is to develop vertical and horizontal integration in the mining industry, with a special focus on industrial and specialty minerals, notably battery-related materials and their by-products.

Contact the author at jon.hopkins@proactiveinvestors.com

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