Company's Analysis Estimates Costs and Profits per Metric Tonne of Above-Ground Graphite Assets; GPNE's Aukam Property Above-Ground Assets Include 140,000 Tonnes of Graphite Bearing Material
NEW YORK, NY and WINDHOEK, NAMIBIA / ACCESSWIRE / April 28, 2015 / Next Graphite, Inc. (OTCQB: GPNE) ("Next Graphite," "GPNE" or the "Company"), an exploration/development stage company in Africa's Republic of Namibia targeting the growing global graphite production industry and market demand, today announced its Preliminary Economic Analysis ("PEA") for its existing above-ground assets on its Aukam property.
The Company's PEA is based on testing results obtained from Gecko Laboratories in Namibia and SGS Lakefield's facility in Canada, as reported by the Company throughout 2014. Mr. Ian Flint, Chief metallurgist of Next Graphite's E12 consulting and engineering team, verified and issued in the first quarter of 2015 the Company's PEA on direct mining and processing costs. Mr. Flint holds a PhD in Mining and Mineral Processing Engineering from the University of British Columbia, and a Master of Science degree in Metallurgical Engineering and Bachelor of Science degree in Geological Engineering, both from the University of Toronto. He has 24 years of graphite experience, including geology, test work, pilot plants, circuit design, mine development, purchasing, management, marketing and service as a public company corporate director. Mr. Flint serves as the Company as a consultant and Team Leader of E12.
The mining and processing costs of this project have been estimated at $487 per metric tonne with a 17-year lifespan of the operation at 2,500 tonnes per annum. These costs are due to: a) the graphite being at the surface; and b) a grading of 42% or more with screening.
The analysis also estimates that a 17-year lifespan of the operation at 2,500 metric tonnes per annum can be increased to 5,000 and 10,000 metric tonnes per year by installing parallel processing lines. The preliminary design of the processing circuit and processing equipment has been estimated at $1.0 million, plus annual operating costs.
"We are delighted with this report as it confirms we already have significant, saleable assets above-ground that have very favorable processing costs," said Cliff Bream, CEO of Next Graphite, Inc. "This sets the stage for an initial revenue stream for the Company, as well as impetus to continue mining of our existing adits and drill our other identified underground graphite resources. This PEA does not account for graphite that is still underground, which we plan to explore and develop as we ramp up operations and target new locations. We are currently in discussions with off-takers for the sale of graphite bearing rock from our above-ground graphite and we are talking with potential joint venture partners to accelerate the construction of an on-site processing facility. The months ahead should be a very exciting period for Next Graphite."
About Next Graphite, Inc.:
Next Graphite, Inc. is an exploration/development stage company targeting the growing global graphite production industry with the Company's 125,000-acre Africa-based Aukam Graphite Project. The Aukam Graphite Mine was established in 1940 in the current Republic of Namibia, produced USD$30 million of graphite at today's prices. The Graphite property is estimated to still contain a significant amount of high grade, vein type graphitic material. Global graphite demand is being driven by the development of new markets for clean and efficient energy alternatives, smart grid infrastructure and military capabilities. Next Graphite has an immediately available, surface-visible, estimated 140,000-tonne mine heaps along with competitive projected mining and processing costs. The completion of GPNE's Aukam Graphite Mine re-launch and development activities are expected to result in a multi-million dollar inward investment into Namibia commencing in 2015.
For more information, please visit: www.nextgraphite.com
Safe Harbor Statement
This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Next Graphite Inc.'s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in Africa, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements. Among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in Africa, general economic conditions; geopolitical events and regulatory changes, availability of capital, the Company's ability to maintain its competitive position and dependence on key management. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
SOURCE: Next Graphite, Inc.