Cal Graphite reviews feasibility study for graphite deposit

A production feasibility study has been received by Cal Graphite Corp. for its open pit, crystalline, flake graphite deposit near Huntsv ille, Ont. A company spokesman, Richard Addison, says Cal Graphite is currently reviewing the study which has also been filed with regulatory authorities.

He confirms the study “indicates a profitable mine life over 34 years,” based on proven and probable reserves totalling 29.5 million tons and contained graphite concentrates of 736,454 tons. The feasibility study has determined a break- even cost of $522 per concentrate ton versus a world selling price of approximately $1,100. The study projects a net, pre-tax, undiscounted profit of $60 million in the first five years of production and $374 million over the life of the deposit.

Mr Addison notes there is further room for expansion of reserves in both open pit and underground categories. The recommended plant size is 3,000 tons per day and the mill would produce about 20,000 tons of graphite concentrate per year. The company expects to make a production decision by year- end, he adds.