Focus Graphite in Quebec boasts world’s fifth-largest resource

An updated resource for Focus Graphite’s (TSXV: FMS) Lac Tetepisca project in central Quebec ranks it in the top five largest graphite resources in the world, and almost doubles its contained graphite over the initial estimate.

The update boosts the global contained graphite to 14.7 million tonnes over the 2022 resource, an 86% increase, while the total grade of 10.2% graphitic carbon (Cg) is just slightly lower than the 10.7% Cg in the original estimate, Focus reported Thursday. Lac Tetepisca is about 800 km northeast of Montreal.

“To be a credible and serious alternative source of supply to China, particularly in building a secure domestic North American supply chain, projects must demonstrate scale, size, and grade. Lac Tetepisca delivers on all three,” Focus CEO Dean Hanisch said in a release. “While operating costs in Canada are inherently higher than in China, grade is the key equalizer, and the grade and scale we are demonstrating here are critical differentiators.”

Focus shares gained 5% to C$0.39 apiece on Friday morning in Toronto, for a market capitalization of C$42.2 million ($30.8 million).

Canada’s graphite hotspot

The resource milestone further positions Quebec as one of the world’s top emerging graphite development hubs. Northern Graphite (TSXV: NGC) hosts Lac des Iles, Lac North America’s sole producing graphite mine, about 260 km northwest of Montreal.

Nouveau Monde Graphite (TSXV: NOU; NYSE: NMG) is developing the Matawinie mine – 120 km north of Montreal. It’s expected to become the continent’s largest graphite operation.

No. 5 in world

The resource update places Lac Tetepisca in fifth place globally for total contained graphite. Triton Minerals’ (ASX: TON) Balama North/Nicanda Hill project in Mozambique leads the pack with 41.7 million tonnes contained graphite, Sarytogan Graphite’s (ASX: SGA) namesake project in Kazakhstan is second with 36.3 million tonnes.

Black Rock Mining’s (ASX: BKT) Mahenge project in Tanzania is third with 16.6 million tonnes. And Graphite One’s (TSXV: GPH) Graphite Creek project in Alaska, with 16.3 million tonnes contained graphite, is fourth.

‘Exceeds typical grades’

“Grades at [Focus’] Lac Knife (15.4%) and Tetepisca (10.7%) far exceed the typical 3–5% of most graphite mines, primarily in China,” Fundamental Research analyst Sid Rajeev said in a March 19 note. “Both are open-pit deposits, with favorable strip ratios (easy to mine, low waste-to-ore ratio). We note that these features are highly appealing, as they can potentially support higher production at lower costs.”

In December, Focus received C$14 million in government funding to build a plant producing ultra-high-purity graphite (>99.9%), suitable for high-performance applications in military, defence, aerospace, and advanced technologies, Rajeev noted. And the projects benefit from Quebec’s low hydro-power costs when electricity typically accounts for 10–20% of a graphite mine’s operating costs.

“Despite having high-grade projects in a prime location, with relatively low projected capital and operating costs, we estimate Focus is trading at just $4 per tonne vs the sector average of $21 per tonne, an 81% discount, suggesting the market has yet to fully recognize its project potential,” Rajeev said. “We view Focus as an attractive target for mining and technology companies seeking stable, long-term North American graphite supply.”

North America’s second

In North America, Lac Tetepisca ranks second, ahead of Nouveau Monde’s Matawinie project, with 6.5 million tonnes of contained graphite. The company envisions Matawinie as supplying feedstock to its planned anode material plant in Bécancour, Quebec, towards an integrated North American supply chain for lithium-ion batteries. Matawinie was referred to the federal government’s Major Projects Office in November.

By contained measured and indicated resources alone, Lac Tetepisca ranks number one on the continent, with 12.3 million tonnes inside a bulk 120.1 million tonnes grading 10.27% Cg. Inferred resources total 24.1 million tonnes at 9.88% Cg for 2.3 million contained tonnes.

Focus’ resource update is based on 26,095 metres drilled across 150 holes. Lac Tetepisca sits on the Manicouagan-Ouest Graphitic Corridor (MOGC) and South-West MOGC graphitic prospect that stretches across northeastern Quebec.