Mining Intelligence and News
Canada

Albany Project

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Categories

Overview

Mine TypeOpen Pit
StagePreliminary Economic Assessment
Commodities
  • Graphite
Mining Method
  • Truck & Shovel / Loader
Mine Life... Lock
SnapshotFebruary 15, 2023
Zentek Ltd. and 1329307 BC Ltd. are pleased to announce that they have signed a non-binding letter of intent dated February 13, 2023 (the “LOI”), pursuant to which the parties have agreed to negotiate a transaction (the “Transaction”) involving the transfer of Zentek’s Albany Graphite Deposit in northern Ontario to an entity (“SpinCo”) to be listed on a recognized Canadian stock exchange.

Zentek believes that transferring the Albany Graphite Deposit asset to a separate entity will enable the Albany Graphite project to move forward with the second year of environmental baseline and hydrogeology studies, with the aim to eventually complete a prefeasibility study.

Owners

SourceSource
CompanyInterestOwnership
Zentek Ltd. 100 % Direct

Contractors

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Deposit type

  • Breccia pipe / Stockwork
  • Hydrothermal

Summary:

The Albany graphite deposit is a unique example of an epigenetic graphite deposit in which a large volume of highly crystalline, fluid-deposited graphite occurs within an igneous host. The deposit is interpreted as a vent pipe breccia that formed from CO2-rich fluids that evolved due to pressure-related degassing of syenites of the Albany Alkalic Complex and is described in the following subsections (Conly, 2014a; Conly, 2014b; Conly and Moore, 2015).

Preliminary petrography indicates that the graphite-hosting breccias range in composition from diorite to granite, and are generally described as “syenite”. Graphite occurs both in the matrix, as disseminated crystals, clotted to radiating crystal aggregates and veins and along crystal boundaries, and as small veins within the breccia fragments. In addition to graphite, the matrix consists primarily of quartz, alkali feldspar, and plagioclase feldspar with minor phlogopite and amphibole and trace amounts of pyrite-pyrrhotite and magnetite. Alteration is minor, and is most pronounced as a paleo-weathering profile in the upper 20 m of the breccia pipes where bleaching and late, carbonate-filled fractures are common. The stockwork graphitic veins can be several centimetres wide while the veinlets and hairline fractures are millimetre and submillimetre scale. Breccia fragments are dominantly massive to weakly foliated AAC syenite (>95%) with minor to trace chlorite-biotite-rich schist fragments, and mafic to intermediate dyke fragments. Occasional solid graphite fragments and rare altered fragments of unknown origin were also observed. Breccia fragments are angular to subangular to subrounded and range in size from subcentimetre to approximately one metre, most being between three centimetres and 30 cm. Dyke and graphite fragments range from one centimetre to five centimetres.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

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Processing

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Production

CommodityUnitsAvg. AnnualLOM
Graphite kt 30634
All production numbers are expressed as refined graphite.

Operational metrics

Metrics
Daily ore mining rate 2,807 t *
Annual ore mining rate 982,500 t *
Annual processing rate 982,500 t *
Stripping / waste ratio 6.8 *
Waste tonnes, LOM 142.38 Mt *
Ore tonnes mined, LOM 20.9 Mt *
Total tonnes mined, LOM 163.31 Mt *
Tonnes milled, LOM 20.9 Mt *
* According to 2015 study.

Production Costs

CommodityUnitsEstimated
Cash costs Graphite USD 2,046 / t *  USD
Assumed price Graphite USD 7,500 / t *  USD
* According to 2015 study / presentation.

Operating Costs

Currency2024
OP mining costs ($/t milled) USD 11.3 *  USD
Processing costs ($/t milled) USD  ....  Subscribe
Total operating costs ($/t milled) USD  ....  Subscribe
* According to 2015 study.

Project Costs

MetricsUnitsLOM Total
Initial CapEx $M USD  ......  Subscribe
Sustaining CapEx $M USD  ......  Subscribe
Total CapEx $M USD  ......  Subscribe
OP OpEx $M USD  ......  Subscribe
Processing OpEx $M USD 844.3
G&A costs $M USD 215
Total OpEx $M USD  ......  Subscribe
Gross revenue (LOM) $M USD  ......  Subscribe
Net revenue (LOM) $M USD  ......  Subscribe
EBITDA (LOM) $M USD  ......  Subscribe
Net Income (LOM) $M USD  ......  Subscribe
Pre-tax Cash Flow (LOM) $M USD  ......  Subscribe
After-tax Cash Flow (LOM) $M USD  ......  Subscribe
Pre-tax NPV @ 10% $M USD  ......  Subscribe
Pre-tax NPV @ 8% $M USD  ......  Subscribe
After-tax NPV @ 10% $M USD  ......  Subscribe
After-tax NPV @ 8% $M USD  ......  Subscribe
Pre-tax IRR, %  ......  Subscribe
After-tax IRR, %  ......  Subscribe
Pre-tax payback period, years  ......  Subscribe
After-tax payback period, years  ......  Subscribe

Required Heavy Mobile Equipment

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Personnel

Mine Management

Job TitleNameEmailProfileRef. Date
....................... Subscription required ....................... Subscription required ........... Subscription required Subscription required Dec 12, 2023

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