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Northern Graphite (TSXV: NGC) has temporarily halted its Lac des Iles mine and mill to address a bearing failure at the mill and to expedite maintenance work, which will support a pit expansion planned for next year. The equipment failure involves a long-lead-time component with a replacement time frame of four to six weeks; a replacement part has already been ordered. Located 150 km northwest of Montreal, Lac des Iles is the only operating graphite mine in North America, producing approximately 15,000 tonnes of concentrates annually.
The mine has been operational for 35 years and has plans to expand its capacity from 15,000 to 25,000 tonnes per year, with a Canadian government grant covering 75% of the expansion costs, totaling around C$6.22 million. The Phase 1 expansion competition is based on a resource report published in January 2024, which indicated 3.3 million tonnes of indicated resources with an average grade of 6.4% graphitic carbon and 1.4 million tonnes of inferred resources at 7.4% grade.
Northern Graphite is currently awaiting a minor amendment to its mining permit to resume operations, which could temporarily affect production for approximately two to three months. Following this update, shares fell by 9.3% to C$0.20, reducing its market capitalization to C$28 million.
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