Zentek Ltd. has reported the results of a new Preliminary Economic Assessment for its Albany Graphite Project in Northern Ontario, prepared by Micon International Limited. The study evaluates an integrated open-pit operation and fluidized bed reactor purification pathway, projecting an after-tax net present value at a 5% discount rate of US$3.85 billion and an after-tax internal rate of return of 27.4%.

The PEA outlines a three-year pre-production period, a 30-year operating life, and a two-year closure period, resulting in a total project life of 35 years. Initial capital expenditure is estimated at US$817.0 million, with life-of-mine sustaining capital of US$1,161.6 million and total life-of-mine operating costs of US$6,645.2 million, or US$7,989.4 per tonne of finished product. Average annual operating costs are estimated at US$221.5 million. At an 8.0% discount rate, the after-tax NPV is US$2.29 billion, and the after-tax payback period is 4.4 years.

The economic analysis uses an average realized product price of US$23,485 per tonne, reflecting Albany's target markets in nuclear, defence, and aerospace applications. Nominal annual production is modelled at 30,000 tonnes of finished ultra-high-purity graphite, supported by an average flotation recovery of 86% from mill feed grading 3.9% graphitic carbon. Gross annual revenue is estimated at US$651.3 million, or US$639.3 million net of transport, insurance, and royalties.

Micon updated the mineral resource estimate using drill hole data available as of June 30, 2026. Total Indicated Mineral Resources are estimated at 23.1 million tonnes grading 4.14% graphitic carbon, containing 957,075 tonnes. Total Inferred Mineral Resources are estimated at 13.3 million tonnes grading 2.88% graphitic carbon, containing 382,130 tonnes. Compared to the previous 2023 estimate by SLR Consulting (Canada) Ltd., Indicated resources increased from 22.9 million tonnes at 4.07% graphitic carbon, and Inferred resources increased from 13.1 million tonnes at 2.87% graphitic carbon. The production schedule processes approximately 25.9 million tonnes of mill feed via open-pit extraction.

The processing flowsheet utilizes crushing, grinding, and flotation—requiring no lime or acid pH modifiers—followed by thermal purification in a fluidized bed reactor. The thermal route operates without hydrofluoric acid at any stage, achieving bench-scale purity levels of 99.9992% carbon with a boron equivalent content of 2.60 parts per million.

Zentek intends to file the technical report supporting the PEA on SEDAR+ within 45 days of the August 10, 2026 press release. Subject to the results of the next phase of work and financing, Zentek expects to advance the Albany Graphite Project to a Pre-Feasibility Study.

Read the full announcement: Zentek Announces New PEA for Albany Graphite: US$3.85 Billion After-Tax NPV at a 5% Discount Rate, 27.4% After-Tax IRR, on an Acid-Free Route to 99.9992% Purity Graphite