NextSource completes equipment upgrade for Molo graphite mine

Staff Writer | August 7, 2024 | 10:11 am Battery Metals Suppliers & Equipment Africa Graphite

NextSource applies to build graphite plant in Mauritius

Construction of the Molo graphite mine in Madagascar was completed in February 2023. (Image courtesy of NextSource Materials.)

NextSource Materials (TSX: NEXT) said on Wednesday it has completed the planned screening equipment upgrades for improving the recoveries and grades of concentrates produced at its Molo graphite mine.

Located in southern Madagascar, the Molo mine entered production in June of 2023 and delivered its first graphite product, the patented SuperFlake, the same year. It is expected to reach its full production capacity of 17,000 tonnes per year for Phase 1 this summer.

The new equipment is designed to sort the SuperFlake graphite concentrate into individual size fractions to meet customer specifications. With the upgrade, the Molo mine is now meeting or exceeding recovery and grade expectations, consistently producing concentrate at a carbon content of between 95%-97%, the company said.

Nextsource said it is now transporting these saleable SuperFlake concentrates from the Molo mine to the Port of Tulear in preparation for export.

“The team have delivered on the opportunity to capitalize on the quality of the Molo graphite deposit by improving recoveries and grades,” CEO Craig Scherba said in a news release. “Having previously shipped test material for qualification, we are now producing high-quality, saleable graphite concentrate.”

During the screen installation, additional process plant upgrades were also carried out at the Molo mine, which the company believes will further enable sustainable and enhanced recoveries going forward. As a result, plant stability has been optimized, and the operation is well positioned ahead of its planned Phase 2 expansion, NextSource said.

Phase 2 is anticipated to begin from the third year of production, with a nameplate capacity of 150,000 tonnes per annum, according to a 2023 feasibility study.

The production profile is based on measured resources of 23.6 million tonnes grading 6.32% Cg, indicated resources of 76.8 million tonnes grading 6.25% Cg and inferred resources of 40.9 million tonnes grading 5.78% Cg for the Molo deposit.

Shares of NextSource Materials were up 2.6% by 1:00 p.m. ET following Wednesday’s announcement, giving the company a market capitalization of C$123.1 million ($89.6m).