The PEA was issued to evaluate building a process plant with twice the capacity of the plant considered in the company’s feasibility study.
The move comes as a result of the recent developments in the lithium-ion battery industry and strong buyer interest in the extra-large flake, concentrates that the project will produce using the Northern Graphite’s purification technology, the company said.
Northern Graphite CEO Gregory Bowes said: "It has been reported that multiple new graphite mines will be required to supply proposed lithium ion battery manufacturing plants because graphite deposits typically produce a high percentage of non battery grade material, and two thirds of the material that is battery grade is lost in the manufacturing process."
"However, Bissett Creek may be the only mine that is required to meet market demand due to its very high percentage of battery grade material, lower manufacturing losses and future expansion potential," Bowes said.
The PEA estimated development capital costs of $134.1m for an operation that is expected to produce approximately 44,200 tons of graphite concentrate each year for the first ten years.
About 90% of the production will comprise large and extra large flake and battery grade graphite which is by far the highest ratio in the industry, the company said.
