Northern Graphite updates mineral resource estimate for Lac-des-Iles Mine

Northern Graphite Corporation is pleased to announce an updated mineral resource estimate for its Lac-des-Iles mine ("LDI") in Quebec. The mineral resource update was prepared by SLR Consulting (Canada) Ltd. ("SLR"), which Northern engaged to update the mineral resource estimate that was previously prepared for the Company by SLR as disclosed in the technical report dated February 2, 2022, entitled "Technical Report on the Lac-des-Iles Quarry, Quebec".

The Company also announces that it intends to meet rising demand by moving to a seven-days-per-week operation in the second quarter, targeting annual nameplate capacity of 25,000 tpy.

The new resource creates potential to extend the life of the Company's cornerstone asset and North America's only graphite producing mine by at least eight years, which will be confirmed and quantified through an updated mineral reserve estimate and life-of-mine plan that will be available later this quarter.

"We are very excited to announce a material increase in our resource base at LDI, just as graphite demand gains momentum from industrial users and from battery makers building for North America's electric vehicle revolution," said Northern Chief Executive Officer Hugues Jacquemin. "The Company acquired LDI with its fully permitted and operational processing plant and tailings facility with a vision of extending the mine life, increasing production, and developing it into a cornerstone asset. The resource and production increases represent the first step in that process, and we look forward to further exploration success and additional expansions in the future."

The updated mineral resource estimate for LDI is based on drill hole data available as of November 2, 2023, assuming an open pit mining scenario and a long-term average flake graphite concentrate price of US$1,550 per tonne. Mineral resources are constrained within an optimized pit shell at a cut-off grade of 2.3% graphitic carbon ("Cg"). Indicated Mineral Resources total approximately 3.29 million tonnes ("Mt") at an average grade of 6.4% Cg, containing approximately 213,000 tonnes of Cg. Inferred Mineral Resources total approximately 1.43 Mt at an average grade of 7.4% Cg, containing approximately 106,000 tonnes of Cg. Existing stockpiles at the mine site are not included in the updated mineral resource estimate.

"We believe that when our updated mineral reserve estimate is released later this quarter we'll be able to show that the mine life at Lac des Iles can be extended by at least eight years," said Chief Operating Officer Kirsty Liddicoat. "Our grades are very strong at 6.4% Cg and that translates into about 65 kilograms of graphite per tonne of mined material."

Mineral Resource Estimate for the Lac-des-Iles Mine as of December 31, 2023

CategoryTonnage 
(Mt)Grade 
(% Cg)Contained Graphitic Carbon 
(kt Cg)

Indicated3.296.4212

Inferred1.437.4106

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