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Mineral Commodities pegs A$139M value for Munglinup graphite project

Mineral Commodities Ltd.'s pre-feasibility study at its 51%-owned Munglinup graphite project in Western Australia confirmed it as a low capital and operational expenditure operation.

The study pegged a posttax net present value, discounted at 8%, of A$139 million and a 48% internal rate of return. A previous scoping study estimated a posttax net present value of A$150 million, at an 8% discount, and a 67% internal rate of return.

The operation will have a nominal throughput of 400,000 tonnes per annum and produce an average of 54,800 tonnes per annum of high purity graphite concentrate during the nine-year mine life.

Total CapEx, including owner costs and contingency, is estimated at A$52.4 million, while operational costs are expected at US$398 per tonne, the company said May 30.

The study was based on a mineral resource of 6.03 million tonnes at 11.0% total graphitic carbon, or TGC, using a 5% TGC cut-off. The resource includes ore reserves of 3.4 million tonnes at 15.9% TGC.

Project construction is expected to complete in November 2019, following by commissioning and initial production in late 2019.

Gold Terrace Pty. Ltd. holds a 49% interest in the Munglinup project, and a mining joint venture between the companies is expected to be in place by November.