Abasca Resources Inc. has delivered an after-tax net present value of US$130 million and a 16.7% internal rate of return for the Preliminary Economic Assessment on the 100%-owned Loki Flake Graphite Deposit in northern Saskatchewan.

The assessment outlines a 19-year open-pit mining and processing operation with a 2,750 tonnes-per-day facility. The project is designed to process 17.9 million tonnes of mill feed at an average life-of-mine grade of 7.27% Cg, producing an annual average of 66,500 dry tonnes of graphite concentrate at a 95% grade. Over 19 years, the operation is projected to yield 1.26 million dry tonnes of payable graphite and generate approximately US$477 million in cumulative after-tax free cash flow under base-case assumptions of US$1,450 per tonne.

Initial capital expenditures are estimated at US$216 million, with total life-of-mine capital costs reaching US$307 million, including US$64 million in sustaining capital and US$27 million for closure and reclamation. Operating costs are projected at US$46.34 per tonne processed.

The Loki Deposit is situated approximately 15 kilometres south of the Key Lake mill and is crossed by Provincial Highway 914, with the provincial power grid located 15 kilometres from the site. The study builds on an updated mineral resource estimate effective April 23, 2026, which upgraded a portion of the deposit to an indicated resource of 6.99 million tonnes at 8.27% Cg alongside an increased inferred resource of 15.83 million tonnes at 6.93% Cg. This compares to the previous estimate of 11.31 million tonnes of inferred flake graphite at 7.65% Cg from April 10, 2025.

“Loki has continued to exceed our expectations. We are pleased to reach this significant milestone in our fast‑track journey to develop the deposit and to vest the staged project value.”

— Dawn Zhou, President and CEO of Abasca

Abasca will now shift its focus toward preparing a feasibility study, obtaining an updated environmental impact assessment, and securing necessary permits. The company will file a National Instrument 43-101 technical report supporting the PEA on SEDAR+ and its website within 45 days of the August 19, 2026, release. Management also anticipates evaluating a targeted drilling program focusing on infill drilling, geotechnical investigations, metallurgical sample collection, and resource expansion.

Read the full announcement: Abasca Announces Positive Preliminary Economic Assessment for the Loki Flake Graphite Deposit: After-Tax NPV of US$130 Million and 16.7% IRR