Northern Graphite halts Lac des Iles operations for repairs

Northern Graphite (TSXV: NGC) says it has temporarily halted its Lac des Iles (LDI) mine and mill to address an unexpected equipment issue, and to bring forward the planned maintenance and development work ahead of its pit expansion next year.The decision follows a bearing failure at the mill, a long-lead-time component with a replacement window of approximately four to six weeks, the Canadian graphite developer said in a press release Thursday, adding that a replacement part has already been ordered.While it completes the repair, the company will also advance other maintenance and repair projects at LDI that had originally been scheduled for January, designed to support the transition to mining from the new pit.“Rather than stopping the plant now and again in January, we decided to start the maintenance program immediately in order to avoid having two separate shutdowns,” said Northern Graphite’s chief executive Hugues Jacquemin.Expanding graphite mineLocated approximately 150 km northwest of Montreal, Quebec, LDI has been in operation for 35 years, serving primarily industrial clients in the US, from refractories for steelmaking to heat management in electronics and friction materials for the global automotive sector.Presently the only graphite mine in North America, it produces around 15,000 tonnes of concentrates per year, but has the installed capacity to produce up to 25,000 tonnes annually. Pre-stripping activity is now underway as part of Phase 1 of an expansion program that could potentially add eight years to the mine life by opening a new pit.The Canadian government is covering 75% of the expansion costs by providing around C$6.22 million in interest-free, repayable contribution. The funding, announced in late August, also allowed Northern Graphite to keep LDI in operation. Before that, the company had considered shutting it down by year-end without sufficient funding for the planned expansion.The pit extension is based on the mine’s resource published in January 2024 which outlined 3.3 million indicated tonnes at an average grade of 6.4% graphitic carbon (Cg), containing around 213,000 tonnes of Cg, plus 1.4 million inferred tonnes averaging 7.4% Cg containing approximately 106,000 tonnes Cg.Permit being finalizedFirst production from the expanded pit could come as soon as the second quarter of 2026, Northern Graphite said, noting that it is now in the final stages of permitting with the Quebec environmental ministry for the Phase 1 expansion.The Phase 1 permit, if received, would allow the company to mine to 203 metres above sea level. It is currently authorized to mine to 209 metres in the current pit, which is approximately 10 metres above the water table.However, Northern Graphite said in its press release that mining has already reached that depth, and a relatively small amount of material has inadvertently been mined and blasted slightly below 209 metres. As a result, mining operations have been temporarily halted until the company confirms there have been no adverse impacts and will request a minor amendment to its existing certificate of authorization to mine remaining ore in the current pit to 203 metres.This could result in a production gap of approximately two to three months between existing operations and production from the expanded pit, it warned.Shares of Northern Graphite fell by 9.3% to C$0.20 on the latest update, bringing its market capitalization down to C$28 million ($19.9 million).Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com