The PEA indicates very robust project economics as reflected in Table 1, with a Post Tax IRR of 62%, a Post Tax NPV of
The level of accuracy for some of the key inputs are generally of a higher level than normally associated with a PEA as only 'Measured and Indicated' resources are included and major capital and operating cost items such as large equipment prices and mining and trucking costs are based on fixed prices obtained in early
The authors of the report, CREO Engineering (
Resource: The Okanjande deposit hosts a hard rock resource of 24,200,000t of ore with 1,287,000t of contained graphite in the measured and indicated categories and 7,200,000t of ore with 359,000t of contained graphite in the inferred category (@3.1%TGC cut-off grade and
Exploration: There is ample evidence of more resources in the region. These need to be quantified by exploration and drilling.
Processing: Investigate Rutile recovery from the graphite flotation tails and existing TSF facility.
Taxes, Royalties and Other Interests: There are approximately
Northern's Namibian operations consist of the Okanjande graphite deposit and the Okorusu processing plant located 70km away. Refurbishment of the Okorusu plant is well underway. The first 20 employees were engaged during June and have been active cleaning the site, stripping equipment, renovating offices and equipping the maintenance workshop. CREO has been appointed as the EPCM contractor, detailed engineering for the new grinding circuits has begun, and long delivery equipment items ordered. Further administration personnel are scheduled to join during July.
'The results of the PEA confirm our expectations for the project and validate the decision to proceed with the acquisition and re-development at both Okanjande and Okorusu. We are well underway towards achieving our objective of first production within 9-12 months with an excellent workforce that is highly experienced in mining operations and 100% sourced within
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Northern is the only significant graphite producing company in
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