Northern Graphite Provides Update on Lac des Iles Mine Development Plans
Northern Graphite Corporation (TSXV: NGC; OTCQB: NGPHF; FSE: 0NG; XSTU: 0NG) has placed its Lac des Iles mine and mill (LDI) into temporary care and maintenance to address an unexpected mill bearing failure and to accelerate critical maintenance and development work in advance of the Company’s planned 2026 pit expansion.
Maintenance Acceleration
A bearing failure at the mill requires a replacement part with an estimated lead time of four to six weeks. With the mill temporarily offline, Northern is bringing forward maintenance and repair projects originally scheduled for January, aligning all work to minimize disruptions and support the transition to mining from the new pit. According to Chief Executive Hugues Jacquemin, advancing the program now avoids two separate shutdowns and positions the operation for a smoother restart.
Operations and Expansion
LDI, located about 150 km northwest of Montreal, Quebec, produces approximately 15,000 tonnes of graphite concentrate annually and has installed capacity of 25,000 tonnes per year. Pre-stripping for Phase 1 of the expansion is underway on a continuous 24-hour schedule over an estimated two-month period. The Regional Economic Growth Through Innovation Program, provided by Natural Resources Canada and delivered by the Economic Development Agency of Canada for Quebec Regions, is financing 75% of eligible costs through an interest-free, repayable contribution of up to $6.2 million.
Mining Update and Permitting
Phase 1 permitting requires a Certificate of Authorization from Quebec’s Ministère de l’Environnement, de la Lutte contre les changements climatiques, de la Faune et des Parcs (MELCCFP) to mine to the 203 m elevation (above sea level). Northern expects to submit the application by month-end and currently anticipates initiating production from the expanded pit in the second quarter of next year. Deepening the pit below 203 m (Phase 2) will require a separate authorization process to be initiated in due course.
The Company is presently authorized to mine to 209 m in the current pit, roughly 10 m above the water table. Having now reached that depth, a small amount of material was inadvertently mined and blasted slightly below 209 m. As a precaution, mining has been temporarily paused while the Company confirms there have been no adverse impacts. Northern will request a minor amendment to its existing Certificate of Authorization to mine the remaining ore in the current pit to 203 m. This may result in a production gap of approximately two to three months between the end of current operations and the start of production from the expanded pit.
Mr. Jacquemin noted that Northern will work closely with regulatory authorities to address the situation, extend the life of this strategic Canadian asset, and help build a secure, sustainable North American graphite supply chain to meet rapidly growing battery market demand.
About Northern Graphite
Northern Graphite is a Canadian company listed on the TSX Venture Exchange and the only flake graphite producer in North America. The Company aims to become a global leader in natural graphite production and in upgrading graphite into high-value products essential to the green economy, including anode material for lithium-ion batteries and EVs, fuel cells, graphene, and advanced industrial technologies. Its Battery Materials Group operates a fully equipped, state-of-the-art laboratory in Frankfurt.
Northern’s asset portfolio includes the producing Lac des Iles mine in Quebec, where output is planned to increase to meet growing industrial demand and anticipated needs from North American battery manufacturers. The Company also owns the advanced-stage Bissett Creek graphite project in Ontario and the fully permitted Okanjande graphite mine in Namibia, currently on care and maintenance, which presents an opportunity to significantly increase production at lower cost and on a shorter timeline than many competing projects. All projects host battery-quality graphite and are located near infrastructure in politically stable jurisdictions.
Qualified Person
Gregory Bowes, B.Sc., MBA, P.Geo., Chairman of Northern, is a qualified person as defined under NI 43-101 and has reviewed and approved the technical information contained in this news release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements, including statements regarding permitting timelines, production targets, mine life extension at LDI, expansion plans, and development strategies for other projects. These statements are based on management’s assumptions and expectations and are subject to risks and uncertainties that could cause actual results to differ materially. Such risks include changes in laws or their enforcement, counterparties failing to perform, social or labour unrest, commodity price volatility, infrastructure failures, financing availability, and outcomes of ongoing or planned studies. Readers should not place undue reliance on forward-looking information. Northern does not assume any obligation to update forward-looking statements except as required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
