Nouveau Monde Graphite Inc. (“Nouveau Monde” or “NMG”): (TSX.V:
NOU; OTCQX: NMGRF; Frankfurt: NM9) is pleased to announce an
updated pit-constrained Mineral Resource Estimate (the “Current
Resource”) for its West Zone Deposit, located in the Tony Claim
Block, which is part of its Matawinie graphite property. This
update follows a drilling campaign completed in the fall of 2019
(see press release dated December 3, 2019).
Highlights:
- Identification of 24.5 Mt of Measured Resources;
- Increase of 25% in the combined Measured and Indicated Mineral
Resource categories;
- Continued de-risking of the project as 89% and 70% of the new
Measured category is the basis for the first three and eight years
of mine operations respectively;
- Minimal change to the new resource pit footprint;
- Mineralization remains open at depth and both to the north and
south.
“Our 2019 surveys enabled the transformation of
Resources towards almost 25 Mt of Measured Resources while
enhancing our geological knowledge of our Matawinie property,” said
Eric Desaulniers, President and CEO of NMG. “This increase in the
Mineral Resource Estimate not only reduces the risk for our first
years of commercial operations, but also demonstrates the
robustness of the resource and our ability to meet the demand of
manufacturers in the electric vehicle supply chain. This
flexibility towards customer needs is an important guarantee of
success in this market space.”
Nouveau Monde’s demonstration plant, which has
been operating for over a year, has shown that the Matawinie
deposit contains exceptional quality ore, with a graphite
concentrate that has an average graphite content of 97% and up to
99% for bigger flakes, allowing it to produce battery grade
material.
The Current Resource is summarized in Table 1
below and is also compared to the previous pit-constrained Mineral
Resource Estimate (the “Previous Resource”) published in a press
release dated June 27, 2018. This new Resource Estimate is based on
additional drilling done in 2019 to increase the deposit model’s
level of detail.
Table 1: Pit-Constrained Mineral
Resource Estimate for the West Zone1
RESOURCECATEGORY 2 |
CURRENT RESOURCE (March 19, 2020)8 |
PREVIOUS RESOURCE (June 27, 2018)8 |
Tonnage (Mt)5,7 |
Grade (% Cg)3 |
Cg (Mt) |
Tonnage (Mt)6,7 |
Grade (% Cg)3 |
Cg (Mt) |
Measured |
24.5 |
4.27 |
1.05 |
0 |
0 |
0 |
Indicated |
95.8 |
4.26 |
4.08 |
95.8 |
4.28 |
4.10 |
Measured + Indicated9 |
120.3 |
4.26 |
5.13 |
95.8 |
4.28 |
4.10 |
Inferred4 |
4.5 |
4.43 |
0.20 |
14.0 |
4.19 |
0.59 |
1 The mineral resources provided in this table
were estimated using current Canadian Institute of Mining,
Metallurgy and Petroleum (CIM) Standards on Mineral Resources and
Reserves, Definitions and Guidelines.
2 Mineral resources are not to be considered
mineral reserves as their economic viability has not been
demonstrated. Additional drilling and/or trenching will be required
to convert Inferred and Indicated Mineral Resources to Indicated
and Measured Mineral Resources.
3 All analyses used for the Resource Estimates
were performed by ALS Minerals Laboratories and delivered as
graphitic carbon (“% Cg”), internal analytical code C-IR18.
4 Inferred Mineral Resources represent material
that is considered too speculative to be included in economic
evaluations. Additional drilling and/or trenching will be required
to convert Inferred Mineral Resources to Indicated or Measured
Mineral Resources.
5 Current Resource effective as of March 19,
2020.
6 Previous Resource published June 27, 2018.
7 The Current and Previous Mineral Resources are
stated at a cut-off grade of 1.78% Cg.
8 The standards used for this Resource
Update are the same standards produced over the course of the
Prefeasibility Study (results published June 27, 2018). The
difference between the Current and Previous Resources comes from
new drilling done in 2019 mainly in the south-west sector of the
deposit and from deep drilling.
9 Mineral Resource tonnage, grade and quantity
have been rounded to reflect the accuracy of the estimate, and the
totals therefore may not represent the exact sums of their
components.
Modelling of the new resources will be used to
optimize NMG’s mine plan while maintaining mineralization openings
at depth and to the north and south. Nouveau Monde Graphite expects
to update its mineral reserves in the third quarter of 2020.
Various characteristics of the Current Resource
pit envelope are compared to the Previous Resource pit envelope in
Table 2.
Table 2: Current and Previous Resource
Pit Envelope Characteristics
PIT ENVELOPECHARACTERISTICS |
CURRENT RESOURCE (March 19, 2020)3 |
PREVIOUS RESOURCE (June 27, 2018)3 |
Length (m)1 |
2,700 |
2,690 |
Maximum Width (m) |
430 |
430 |
Surface Area (km2) |
0.991 |
0.896 |
Minimum Pit Elevation (m)2 |
215 |
255 |
1 Measured length is approximate.
2 Elevation is measured above sea level or
“ASL.”
3 The Current Resource is constrained
within an optimized pit envelope using different parameters from
the Previous Resource. The parameters used are summarized in Table
3 of this press release.
A map displaying the West Zone core drilling and
trenching locations as well as a plan view of the Current Resource
is available from this link.
Data Sources and Current Resource
Estimation MethodsThe block model, used to generate the
Current Resource of the West Zone deposit, is based on a total of
149 core drill holes which produced 8,274 samples as well as 207
samples collected from channeling work in three (3) trenches. In
all, 23 mineralized horizons encased in paragneiss units were
interpreted and modelled from this data.
Mineralized material classification was
performed through an automated classification algorithm using
search ellipsoids centred on composites.
The Indicated Resource extent is based on the
distance between drill holes. The total thickness of the
mineralized volumes is attributed the same category. The
Indicated Resource is a continuous zone measuring approximately 2.7
km long by 175 m wide. Drill holes are typically spaced 100 m apart
or less from section to section and spaced every 75 m or less on
the sections for the Indicated Resource zones. Drilling in the
Measured Resource portion is typically spaced 50 m apart or less
from section to section and spaced 60 m apart or less on the
sections. All resources outside this area are attributed the
inferred category by default.
The Current Resource block model for the West
Zone was prepared by Yann Camus, P.Eng., of SGS Canada Inc. —
Geological Services (“SGS”) from Blainville, Quebec, using the
Genesis© mining software. Interpolation was performed using inverse
square distance (ID2) as well as different search ellipses which
were adapted for the geology of the deposit. The block model was
then fed to GEOVIA’s WhittleTM software to provide an optimized pit
envelope constraining the Current Resource. For results comparison,
the parameters used to generate the current pit envelope were the
same as those used for the previous pit envelope. The parameters
used for the modelling are summarized below in Table 3.
Table 3: Current Resource Pit Envelope
Generation Parameters.
PARAMETERS |
VALUES |
Currency (CAD unless otherwise specified) |
1.28 CAD = USD 1.00 |
Block Size |
5 m x 5 m x 5 m |
Specific Gravity |
2.76 t/m3 |
Overall Slope Angle |
Rock |
55O |
Overburden |
25O |
Selling Price of Concentrate |
$1,124.00 USD/t – Transportation Cost |
Quality ControlAs mentioned in
the press release issued on December 3, 2019, a strict quality
assurance control protocol was adopted for the 2019 drilling
campaign. An analysis of the results of the quality control samples
showed that the graphitic carbon analyses for this campaign are
reliable.
The technical data included in this release was
prepared by Yann Camus, P.Eng., of SGS Canada Inc. — Geological
Services, a Qualified Person as defined by NI 43–101
Regulation.
FinancingThe Corporation
announces that the repayment of the Pallinghurst Graphite Limited
(“Pallinghurst”) financing of an aggregate amount of C$2,000,000
announced on June 28, 2019 (press release) is extended to December
31, 2020 (“First Financing”). The other terms of the First
Financing remain unchanged. The Corporation also announces
that it has closed a new unsecured financing with Pallinghurst for
an aggregate amount of C$2,000,000 upon the same terms as the First
Financing being an interest rate of 9% per year and the repayment
of the capital and the accrued interest fixed at the latest on
December 31, 2020.
ABOUT Nouveau Monde
GraphiteNouveau Monde Graphite is developing the Matawinie
graphite mining project, located in Saint-Michel-des-Saints, 150 km
north of Montréal, QC. At the end of 2018, the Company published a
Feasibility Study which revealed strong economics with projected
graphite concentrate production of 100,000 tonnes per year, with an
average concentrate purity of 97%, over a 26-year period.
Currently, Nouveau Monde operates a demonstration plant where it
produces concentrated flake graphite, which is being sent to
potential North American and international clients for the
qualification of its products. In a perspective of vertical
integration within the electrical vehicle market, Nouveau Monde is
planning a large-scale secondary graphite transformation facility,
catering to the needs of the booming lithium-ion battery industry.
Dedicated to high standards of sustainability, the Matawinie
graphite project will be the first of its kind to operate as an
all-electric, low-carbon mine.
Media |
Investors |
Julie Paquet Director,
Communications 450-757-8905 #140 jpaquet@nouveaumonde.ca |
Christina Lalli Director,
Investor Relations 438-399-8665 clalli@nouveaumonde.ca |
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Cautionary Note Regarding
Forward-Looking Information
All statements, other than statements of
historical fact, contained in this press release including, but not
limited to (i) the increase of Mineral Resources tonnage,
(ii) the conversion of Inferred or Indicated
Mineral Resources to Measured Resources and the conversion of
Mineral Resources to Mineral Reserves , (iii) the positive impact
of the foregoing on project economics, and
(iV) generally, or the “About Nouveau Monde
Graphite” paragraph which essentially describe the Corporation’s
outlook and objectives, constitute “forward-looking information” or
“forward-looking statements” within the meaning of certain
securities laws, and are based on expectations, estimates and
projections as of the time of this press release. Forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by the Corporation as
of the time of such statements, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. These estimates and assumptions may prove to be
incorrect.
Many of these uncertainties and contingencies
can directly or indirectly affect, and could cause, actual results
to differ materially from those expressed or implied in any
forward-looking statements. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Forward-looking statements are
provided for the purpose of providing information about
management’s expectations and plans relating to the future. The
Corporation disclaims any intention or obligation to update or
revise any forward-looking statements or to explain any material
difference between subsequent actual events and such
forward-looking statements, except to the extent required by
applicable law.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Further information regarding Corporation is
available in the SEDAR database (www.sedar.com) and on the
Corporation’s website at: www.NouveauMonde.ca
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