Northern Graphite halts Lac des Iles operations for repairs

North Graphite (TSXV: NGC) claims it has actually momentarily stopped its Lac des Iles mine and mill to attend to an unforeseen devices concern, and to advance the intended upkeep and growth job in advance of its pit development following year.

The choice adheres to a bearing failing at the mill, a long-lead-time element with a substitute home window of roughly 4 to 6 weeks, the Canadian graphite programmer stated in a news release Thursday, including that a substitute component has actually currently been purchased.

While it finishes the repair service, the business will certainly additionally progress various other repair and maintenance tasks at Lac des Iles that had actually initially been set up for January, created to sustain the shift to mining from the brand-new pit.

” As opposed to quiting the plant from time to time in January, we determined to begin the upkeep program instantly to avoid having 2 different closures,” Northern Graphite’s president Hugues Jacquemin stated in a press release.

Situated 150 kilometres northwest of Montreal, Quebec, Lac des Iles is the only operating graphite mine in The United States and Canada.

Increasing graphite mine

The Lac des Iles mine has actually functioned for 35 years, offering largely commercial customers in the United States, from refractories for steelmaking to warmth monitoring in electronic devices and rubbing products for the worldwide auto market.

Presently, it generates about 15,000 tonnes of focuses annually, yet has actually the mounted ability to generate approximately 25,000 tonnes yearly. Pre-stripping task is currently underway as component of Stage 1 of a growth program that might possibly include 8 years to the mine life by opening up a brand-new pit.

The Canadian federal government is covering 75% of the development prices by supplying around C$ 6.22 million in interest-free, repayable payment. The financing, revealed in late August, additionally permitted North Graphite to maintain the mine in procedure. Prior to that, the business had actually taken into consideration closing it down by year-end without enough financing for the scheduled development.

The pit expansion is based upon the mine’s source released in January 2024 which described 3.3 million showed tonnes at an ordinary quality of 6.4% graphitic carbon (Cg), having around 213,000 tonnes of Cg, plus 1.4 million presumed tonnes balancing 7.4% Cg having roughly 106,000 tonnes Cg.

License being completed

Initial manufacturing from the increased pit might come as quickly as the 2nd quarter of 2026, Northern Graphite stated, keeping in mind that it is currently in the lasts of allowing with the Quebec ecological ministry for the Stage 1 development.

The Stage 1 license, if gotten, would certainly permit the business to extract to 203 metres over water level. It is presently accredited to extract to 209 metres in the existing pit, which is roughly 10 metres over the groundwater level.

Nevertheless, North Graphite stated in its news release that mining has actually currently gotten to that deepness, and a reasonably percentage of product has actually unintentionally been extracted and blown up a little listed below 209 metres. Because of this, mining procedures have actually been momentarily stopped till the business validates there have actually been no negative effects and will certainly ask for a small change to its existing certification of permission to extract staying ore in the existing pit to 203 metres.

This might cause a manufacturing void of roughly a couple of months in between existing procedures and manufacturing from the increased pit, it cautioned.

Shares of North Graphite dropped by 9.3% to C$ 0.20 on the most recent upgrade, bringing its market capitalization to C$ 28 million ($ 19.9 million).