Putting Canada On The Map
Gary Economo Talks Focus Graphite’s Lac Knife Graphite PEA
Kevin Michael Grace

November 1, 2012 - Focus Graphite Inc V.FMS announced October 29 a preliminary economic assessment of its Lac Knife Graphite Project in Quebec. The PEA forecasts a mine life of 20 years with overall production of six million tonnes of mill feed grading 15.66% Cgr (carbon in graphite or graphitic carbon) with average graphite recovery of 91.3%. Life-of-mine production of 92% Cgr will be 928,000 tonnes at $435 per tonne. Thermal purification will enable the upgrade of approximately 40% of primary concentrate to 99.99% Cgr with inherent purification losses of 15%.

Based on per-tonne prices of $10,000 for battery grade (>99.95% Cgr, +100 mesh), $1,300 for medium grade (>90% Cgr, -100+200 mesh) and $800 for fine grade (>80% Cgr, -200 mesh), the pretax net present value (NPV) is $246 million (at a 10% discount rate); the pretax internal rate of return (IRR) is 32%; pretax undiscounted cashflow is $926 million; total net revenue is $3.7 billion; the pretax payback period is 2.8 years; and the initial CAPEX is $154 million with a 25% contingency.

President/CEO Gary Economo was interviewed by Kevin Michael Grace October 29.

Read the interview with Economo here.