Hearst-area graphite deposit estimated to last over 30 years
The Albany graphite deposit in Northern Ontario holds 23.1 million indicated tonnes with 4.14% graphitic carbon, suggesting over 30 years of mining potential.
Zentek Ltd. has released a preliminary economic assessment (PEA) for its Albany graphite deposit near Hearst, Ontario, indicating a potential 35-year mining operation. The assessment outlines plans for both open pit and underground mining to extract high-purity graphite, targeting premium markets such as nuclear, defense, and semiconductors.
The Albany deposit, located 70 kilometers northwest of Hearst, benefits from road access and proximity to rail, power, and natural gas infrastructure. The proposed mining cycle includes three years of pre-production, 30 years of full production, and a two-year closure period, with an estimated development cost of US$817 million.
Drilling data as of June 30 shows Albany contains 23.1 million indicated tonnes at 4.14% graphitic carbon and 13.3 million inferred tonnes at 2.88% graphitic carbon. The operation is expected to process 894,454 tonnes of ore annually, producing 30,000 tonnes of finished graphite.
Zentek aims to avoid federal environmental assessments by adhering to provincial permitting processes. The PEA updates a previous study from 2015, but no construction decisions or timelines for permitting and production have been finalized.
To finance the project, Zentek is exploring strategic partnerships, government funding, and capital markets, having recently raised $18 million. CEO Moe Jiwan emphasized the deposit's unique hydrothermal graphite, which naturally possesses high purity, reducing purification efforts.
Zentek, with support from Natural Resources Canada, has developed a fluidized bed reactor (FBR) technology to purify Albany's graphite. The company plans to scale this process and provide samples to potential customers.
If the project proceeds, Zentek commits to benefiting the Constance Lake First Nation, the nearest Indigenous community, through job creation and economic opportunities. The project is expected to generate 1,050 construction jobs and 230 full-time mining positions. Zentek describes its relationship with Constance Lake as integral, aiming for a new standard in benefit sharing once agreements are finalized.
The Albany deposit was initially discovered by Zenyatta Ventures in 2011, Zentek's predecessor.
Source: Graphite Feed