Bruno Baillavoine, Executive Chair of the Company stated '
The Company's strategic path is logical. The first objective is to secure the optimal funding necessary to complete the last element of the processing plant and provide operating capital. The stirred media mill and the polishing mill, part of the refining circuit, are already on site and have been set up for production requirements. Additional pumps are available for immediate acquisition, and the different circuits need to be connected by them. The crushing circuit, the rod mill and most of the flotation circuit have already been commissioned for commercial readiness. As the Company completes this stage, it will also commission the refining, drying and bagging circuits.
'Within 4 months of securing funding, we anticipate that the Aukam plant will be producing Graphite. At this junction it is more important to do the right deal rather than the quickest deal. We expect Aukam to become profitable within 12 months of commencing production. This is a major objective and one that will set
As announced on
The Capim Grosso Property is a crucial part of
The Capim Grosso asset with continue to be developed in 2024 through the execution of a PFS (pre-feasibility study) which will include 5,000 meters of additional drilling, initial engineering development, and commencement of the environment and operation licensing processes. In 2025, the Company plans to perform additional infill drilling aiming to refine the mine planning of the asset and advance the detailed engineering preceding the Feasibility Stage, followed by commencement of site construction and ordering of core equipment. 2026 should see the commissioning phase, and subsequent commercial operation stage.
The Company is working towards completing a Feasibility Study (FS) on the Aukam Property. The study, its recommendations, and their subsequent implementation, will provide conclusions and recommendations at a FS level of comfort about scaling up the existing processing plant at Aukam to a commercial scale processing facility capable of producing the desired concentrate grades and production rates.
Risk Factors
No mineral resources, let alone mineral reserves demonstrating economic viability and technical feasibility, have been delineated on the Aukam Property. The Company is not in a position to demonstrate or disclose any capital and/or operating costs that may be associated with the processing plant until a FS is completed.
The Company advises that it has not based its production decision on even the existence of mineral resources let alone on a Preliminary Feasibility Study or FS of mineral reserves, demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit.
Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will begin as anticipated or at all or that anticipated production costs will be achieved.
Failure to commence production would have a material adverse impact on the Company's ability to generate revenue and cash flow to fund operations. Failure to achieve the anticipated production costs would have a material adverse impact on the Company's cash flow and future profitability.
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Large quantities of high-quality vein graphite have been shipped for testing to confirm its suitability as anode material.
On the
Contact:
Tel: (416) 561- 4095
Forward Looking Statements
This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward-looking statements are neither promises nor guarantees and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in
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