Following the publishing of results on January 10, 2023, Nouveau Monde Graphite Inc. (“NMG“ or the “Company”) (NYSE: NMG, TSX.V: NOU) has filed the preliminary economic assessment (“PEA”) for the Uatnan mining project (the “Uatnan Mining Project”) located in Québec, Canada, with the securities commissions and regulatory authorities in Canada and the U.S. The PEA, conducted by engineering firms BBA Inc. (“BBA”) and GoldMinds Geoservices Inc. (“GMG”) according to National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), was carried out in collaboration with Mason Graphite Inc. (“Mason Graphite”) (TSX.V: LLG, OTCQX: MGPHF) as the Uatnan Mining Project leverages the Lac Guéret deposit wholly-owned by Mason Graphite and subject to an investment agreement and option and joint venture agreement with NMG.
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“NI 43-101 Technical Report – PEA Report for the Uatnan Mining Project”
The PEA shows strong economics for NMG’s updated operational parameters and production volumes targeting the production of approximately 500,000 tonnes of graphite concentrate per annum over a 24-year life of mine (“LOM”). The proposed Uatnan Mining Project is currently one of the largest projected natural graphite productions being developed in the world. Consistent with NMG’s vertical integration strategy, the Uatnan Mining Project’s contemplated production would serve as feedstock for battery materials advanced manufacturing, providing refining expansion opportunity, increasing potential margins, and enhancing the Company’s growth profile.
In today’s dynamic market, the Uatnan Mining Project aligns with NMG’s commercial engagement amidst electric vehicle (“EV”) adoption reaching unprecedented levels with 10.3 million vehicles sold in 2022 (Rho Motion, February 2023). With 7,940 GWh of global lithium-ion battery production capacity projected by 2030, demand for advanced materials is set to increase up to fivefold, with graphite outpacing the other battery metals (Benchmark, January 2023) at 10,363,000 tonnes per annum for that market segment alone.
Arne H Frandsen, Chair of NMG, declared: “The market is actively searching for alternative sources of graphite, in significant volumes, to reduce its dependence on Chinese-controlled supply chains. NMG’s integrated operating model, from ore to battery materials, caters to western world’s EV and battery manufacturers with a turnkey, scalable, and ESG-driven production. The Uatnan Mining Project fits perfectly into the Company’s development plan, providing a large resource to complement our Phase-2 Matawinie Mine and Bécancour Battery Material Plant. Now more than ever, NMG is demonstrating its leadership in striving to establish North America’s largest natural graphite production to serve the energy transition.”
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PEA Results: The Potential of the Uatnan Mining Project
NMG and its consultants revisited the fundamentals for the property development with a view to aligning the Uatnan Mining Project with today’s market opportunity. Design of the Uatnan Mining Project has been tailored to the needs of the battery and EV market, orienting production volumes for beneficiation in order to produce active anode material.
The Uatnan Mining Project optimizes the Mineral Resources (see Table 2) and aims to expand the original mining project tenfold by targeting the production of approximately 500,000 tonnes of graphite concentrate per annum. It would be operated as a conventional open pit with a concentrator near the deposit. In line with NMG’s responsible mining approach, plans include considerations for high standards in term of tailings management, progressive site closure with backfilling of the pit and a transition to fleet electrification. Québec’s affordable clean hydropower underpins the Uatnan Mining Project’s economic structure and supports NMG’s undeterred carbon-neutrality commitment.
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