Mine Construction On Schedule Molo Graphite Project In Madagascar

TORONTO - NextSource Materials Inc. reported that its mine construction schedule is on track and on budget for its Molo Graphite Project in Madagascar. Progress development highlights include: Construction is on track, with all major equipment fabricated and ready to be received by the EPC; Overall project progress exceeds 25% completion; Personnel have been mobilized to site in Madagascar; Site works are on schedule to commence in Q3/Q4 2021; Plant equipment installation at site is on schedule to begin in Q1/Q2 2022; and Mine is fully funded and on schedule to commission in Q2 2022.

The Company's engineering, procurement, and construction management (EPCM) contractor, Erudite Strategies Ltd., reports that the attrition and ball mills, crushers, flotation columns, screeners, feeders, mixing tanks, bagging and drying systems have been fabricated and are ready for assembly. These comprise the major components of the Molo mine processing plant.

This equipment will shortly be received by the Company's engineering, procurement, and construction (EPC) firm, in order to begin assembling the modules. The EPC firm specializes in the design, engineering, construction and assembly of fully modular processing plants, and is the reason that the Company's Molo mine is able to have a very low mine capital cost ("CAPEX") versus its competition and can reach the commissioning stage inside of 12 months from initiation of construction.

Company personnel have been mobilized to Madagascar to begin preparations for site works, which are on schedule to commence in Q3/Q4 2021. Plant equipment is on track to be delivered to site in Q1 2022, with plant equipment module installation at site on schedule to begin in Q1/Q2 2022.

The various challenges associated with the construction of a mine during a global pandemic have been mitigated through the fabrication and assembly of the processing plant as a modular, ‘turn-key' facility. This construction philosophy has enabled small, nimble technical teams to work on their components of the Molo mine in isolation, while minimizing the personnel and time required throughout the construction process.

The Molo Graphite Project is expected to be the next graphite mine to enter production outside of China.

Craig Scherba, CEO, said, “Constructing a mine during ‘normal' times is fraught with challenges, and these challenges are exacerbated in the midst of a global pandemic. The construction philosophy we have adopted has mitigated these challenges, and the project is on-track due to the extremely hard work and perseverance of the various people involved. Their hard work and flexibility in adapting to ever-changing circumstances have been instrumental in bringing the mine closer to fruition.”