Global Battery Materials Corp. has released positive results from a Preliminary Economic Assessment for its Kearney Graphite Project in northeastern Ontario, revealing a post-tax internal rate of return of 67% and a payback period of just 1.3 years. The brownfield redevelopment of the prior-producing Kearney Mine is expected to deliver a post-tax net present value (discounted at 8%) of USD $183 million, according to the PEA prepared by WSP Canada Inc.
Strong Economics Driven by Existing Infrastructure
The PEA, which complies with NI 43-101 standards, highlights the advantages of restarting a mine with existing historical infrastructure. This includes transportation access and a previously disturbed industrial footprint, which reduce capital intensity and accelerate development timelines. The after-tax cumulative undiscounted cash flows over the 20-year mine life are estimated at USD $421 million.
Initial capital expenditures are estimated at CAD $65.9 million, with sustaining capital of CAD $30.9 million. Operating costs are projected at CAD $31.35 per tonne milled during the diesel phase and CAD $25.50 per tonne milled once grid power (44 kV) is connected.
Product Focus on Battery and Industrial Markets
The project's economics are based on the sale of graphite concentrate (approximately 95% Cg), industrial graphite products, and upstream battery materials. These products serve growing demand across North American industrial, defence, energy storage, and battery supply chain markets. The company, Global Battery Materials, is a vertically integrated critical minerals and technology company focused on developing secure North American graphite and advanced anode material supply chains.
Qualified Persons and Technical Oversight
The scientific and technical information in the news release was reviewed and approved by several Qualified Persons independent of Global Battery Materials Corp. These include Benjamin Berson, P.Eng., PMP (mining and infrastructure), Brian Thomas, P.Geo. (mineral resource estimate), Amir Maleki Ghahfarokhi, P.Geo. (geology and exploration), Kerry Salvatori Lee, P.Eng. (tailings management), Oliver Peters, P.Eng., M.Sc., MBA (metallurgical processing), William Stiebel, M.Sc., P.Geo., FGC (environmental and water management), and Piers Wendlandt, PE (economic analysis).
Mineral Resource Estimate
The Kearney Graphite Project hosts indicated mineral resources of 29.2 million tonnes grading 2.10% Cg and inferred mineral resources of 33.8 million tonnes grading 1.90% Cg. The PEA assumes an exchange rate of CAD $1.40 per US $1.00.
