NextSource Materials Inc (CVE:NEXT), which is developing the Molo flake graphite project in southern Madagascar, has filed its updated feasibility study for the property.
Results were previously announced in June this year.
Phase 1 will consist of a fully operational graphite mine with a processing plant capable of producing around 17,000 tonnes per annum of high-quality SuperFlake graphite concentrate per year with a mine life of 30 years.
Phase 1 will take nine months to build and realize a pre-tax internal rate of return (IRR) of 25.2% and an after-tax IRR of 21.6%.
The build cost is put at US$18.4mln and confirms that the Molo project will have the lowest capital mine cost (capex) of any new and competing graphite project.
Based on the positive results of this updated feasibility study, the company will pursue an economic analysis for eventual phase 2 expansion.
This will incorporate the unique modular approach to produce around 50,000 tonnes per annum of finished SuperFlake graphite concentrate.
NextSource Materials Inc shares were unchanged at $0.06.