# Abasca Announces Positive Preliminary Economic Assessment for the Loki Flake Graphite Deposit: After-Tax NPV of US$130 Million and 16.7% IRR Canonical Atlas analysis: https://atlas-extractions.minestarters.com/news/abasca-announces-positive-preliminary-economic-assessment-for-the-loki-flake-gra--cefe43c7-051b-4248-a692-a41b305c7387 Original source: https://money.tmx.com/en/quote/ABA/news/4738641922212918/abasca-announces-positive-preliminary-economic-assessment-for-the-loki-flake-gra Publisher: tmx Original announcement: 2026-08-19T11:00:00.000Z Analysis by Minestarters Atlas Atlas analysis published: Unknown date Atlas analysis updated: Unknown date - Company: Abasca Resources Inc. - Ticker: ABA - Exchange: TSX - Region: Saskatchewan - Primary commodity: Graphite - Secondary commodities: None reported - Document categories: Economic study, Resource update, Metallurgy - Extracted: 2026-09-19 06:19:08 UTC Narrative sentiment: 0.60 · Bullish ## Minestarters Atlas summary Abasca Resources Inc. announced positive results from a Preliminary Economic Assessment \(PEA\) for its Loki Flake Graphite Deposit, projecting an after-tax NPV of US$130 million and an IRR of 16.7%. The study outlines a 19-year open-pit operation producing 66,500 tonnes of 95% Cg concentrate annually, based on an updated mineral resource estimate. The company plans to advance the project towards a Feasibility Study and secure necessary permits. Reasoning: Abasca announced positive results from a Preliminary Economic Assessment \(PEA\) for its Loki Flake Graphite Deposit, showing an after-tax NPV of US$130 million and an IRR of 16.7%. The study projects a 19-year mine life with strong metallurgical recovery and is based on an updated mineral resource estimate. While the economics are positive, the PEA nature and reliance on a significant inferred resource component introduce inherent uncertainty. The company plans to advance towards a Feasibility Study. - Positive factor: Positive after-tax NPV and IRR for the PEA, indicating economic viability. - Positive factor: Long mine life of 19 years, providing exposure to multiple price cycles. - Positive factor: High metallurgical recovery of 92.3% to concentrate, achieved with conventional flotation. - Positive factor: Updated Mineral Resource Estimate forms the basis of the study, with a significant indicated component. - Positive factor: Project benefits from existing infrastructure and proximity to power and road access. - Negative factor: The study is a Preliminary Economic Assessment \(PEA\), which is conceptual in nature and includes inferred resources, carrying higher uncertainty. - Negative factor: IRR of 16.7% is moderate, suggesting sensitivity to price fluctuations or cost increases. - Negative factor: Payback period of 4.7 years is moderate, indicating a longer capital return time. - Negative factor: The PEA is based on an updated MRE, but the MRE itself includes a substantial inferred component \(15.83 Mt Inferred vs 6.99 Mt Indicated\). Low confidence — this extraction should be reviewed alongside the original source. Facts used in scoring: 5 ## Classification and evidence **PEA Only** Polarity: neutral Definition: Only Class 4 / Initial Assessment economics available. Not bankable. Why it applies: The document explicitly states that the results are from a Preliminary Economic Assessment \(PEA\). Evidence · text > announces positive results from an independent Preliminary Economic Assessment \(the "PEA"\) **High IRR** Polarity: positive Definition: Post-tax real unlevered IRR in the strong tier or better. Why it applies: The after-tax IRR of 16.7% falls within the moderate tier for economic studies. Evidence · table > 16.7% Context: After-Tax Internal Rate of Return \(IRR\) **Fast Payback** Polarity: positive Definition: Payback in the strong tier or better, on the required basis. Why it applies: The after-tax simple payback period is 4.7 years, which is within the moderate tier. Evidence · table > 4.7 Context: After-Tax Simple Payback **Inferred Heavy Feed** Polarity: negative Definition: Material Inferred share of LOM mill feed, or the share is undisclosed. Why it applies: The PEA includes Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them, and the MRE has a significant inferred component \(15.83 Mt Inferred vs 6.99 Mt Indicated\). Evidence · text > It includes Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. **NI 43-101 Compliant** Polarity: positive Definition: Resource estimate prepared in compliance with NI 43-101 \(Canada\) — high reporting standard. Why it applies: The PEA and MRE were prepared in accordance with National Instrument 43-101. Evidence · text > The PEA was prepared by Tetra Tech Canada Inc. \("Tetra Tech"\) in accordance with National Instrument 43-101 **QP/CP Signed** Polarity: positive Definition: Qualified Person \(QP\) or Competent Person \(CP\) named and signed off — a member of a recognized professional association \(e.g., AusIMM, SME, AIG, P.Geo\) with relevant experience. Why it applies: Multiple Qualified Persons are named and responsible for the PEA and MRE. Evidence · text > The scientific and technical information contained in this news release has been reviewed and approved by Brian McEwan, P.Geo., who is a Qualified Person \("QP"\) as defined by National Instrument 43-101 **Resource Update** Polarity: neutral Definition: Revised estimate for an existing resource — compare to prior to assess progress. Why it applies: The document announces an updated Mineral Resource Estimate for the Loki Flake Graphite Deposit. Evidence · text > On July 14, 2026, Abasca announced an updated Mineral Resource Estimate \(the "MRE"\) for the Loki Flake Graphite Deposit. **Maiden Resource** Polarity: neutral Definition: First formal MRE for the project — establishes baseline but typically exploration-stage with high Inferred component. No prior estimate exists, so every change band is not applicable. Why it applies: The PEA is based on an updated MRE, but the company's 'About' section refers to the Loki Flake Graphite Deposit as 'hosting' resources, implying it's not a maiden resource for the project, but rather an update. Evidence · text > Abasca announced an updated Mineral Resource Estimate \(the "MRE"\) for the Loki Flake Graphite Deposit. **High Recovery** Polarity: positive Definition: Recovery at or above the exceptional band for the commodity and processing route. Why it applies: Graphite recovery to concentrate is 92.3%, which is strong for flotation. Evidence · table > 92.3 Context: Graphite Recovery to Concentrate **Mill Route** Polarity: neutral Definition: Processing via mill or concentrator \(CIL, CIP, tank leach, flotation\). Why it applies: The processing flowsheet uses conventional flotation with staged regrinding. Evidence · text > The flowsheet uses separate flotation with staged regrinding for coarse and fine fractions respectively. **Pilot Scale Complete** Polarity: positive Definition: Pilot or demonstration plant testing completed under continuous operation. Why it applies: A preliminary test program was conducted by SGS Lakefield, including flotation testing, indicating bench-scale work. Evidence · text > A preliminary test program for recovering the graphite from the Abasca deposit was conducted by SGS Lakefield during 2025 and 2026. **Cut-off Disclosed** Polarity: positive Definition: Cut-off grade used for resource reporting is clearly stated, enabling like-for-like comparison. Why it applies: A current resource fact retains the disclosed cut-off grade **Single Domain Only** Polarity: negative Definition: Testing limited to one composite or domain — representativeness not established. Why it applies: only one composite was tested ## Extracted facts Stored fact records: 3. Some facts used in scoring do not have a stored record. ## Resource Estimates (2) ### indicated [Link to this fact](https://atlas-extractions.minestarters.com/news/abasca-announces-positive-preliminary-economic-assessment-for-the-loki-flake-gra--cefe43c7-051b-4248-a692-a41b305c7387#fact-resource-facts-2) Loki Flake Graphite Deposit · graphite #### Identity - Project: Loki Flake Graphite Deposit - Commodity: graphite - Region: canada\_sk - Reported Region: Saskatchewan - Ticker: ABA #### Resource scope - Estimate type: resource - Effective date: 2026-04-23T00:00:00.000Z - Reporting standards: ni\_43\_101 - QP Signed: Yes - Qualified person names: Matt Batty - Resource group id: resource:1306d64140f21f45d4ab - Deposit or zone: Loki Flake Graphite Deposit - Mining method: open\_pit - Ownership percent: 100 % #### Resource Data - Category: indicated - Tonnes: 6990000 - Grade: 8.27 - Grade Unit: % Cg - Contained Metal: 0.58 - Contained Unit: mt - Cutoff Grade: 2.3 - Cutoff Unit: % Cg #### Prior Estimate - Resource Date: 2026-04-23 #### Review - Needs Review: No - Historical: No #### Dates - Event date: 2026-08-19T00:00:00.000Z Reasoning: The updated MRE includes 6.99 Mt of Indicated resources at 8.27% Cg, which is a positive for project de-risking and supports the economic assessment. The estimate is compliant with NI 43-101 standards. - Positive factor: Significant indicated resource tonnage and grade, providing a solid base for economic studies. - Positive factor: Resource estimate is NI 43-101 compliant and signed off by a Qualified Person. - Positive factor: Updated MRE forms the basis of the PEA, indicating current geological understanding. Evidence · table > 6.99 Context: Indicated #### Tags used in scoring **Indicated Resource** Polarity: positive Definition: Reasonable geological confidence based on adequate drilling; continuity can be assumed. Basis for Probable Reserves. Why it applies: category is "indicated" **Cut-off Disclosed** Polarity: positive Definition: Cut-off grade used for resource reporting is clearly stated, enabling like-for-like comparison. Why it applies: cutoff\_grade is stated **QP/CP Signed** Polarity: positive Definition: Qualified Person \(QP\) or Competent Person \(CP\) named and signed off — a member of a recognized professional association \(e.g., AusIMM, SME, AIG, P.Geo\) with relevant experience. Why it applies: qp\_signed is true **NI 43-101 Compliant** Polarity: positive Definition: Resource estimate prepared in compliance with NI 43-101 \(Canada\) — high reporting standard. Why it applies: reporting\_standards includes ni\_43\_101 **Resource Update** Polarity: neutral Definition: Revised estimate for an existing resource — compare to prior to assess progress. Why it applies: the release compares against a previous estimate **PEA-Supporting** Polarity: neutral Definition: Resource estimate prepared to support a Preliminary Economic Assessment — early-stage study. Why it applies: the release names the study this estimate supports **DFS-Supporting** Polarity: neutral Definition: Resource estimate prepared to support a Definitive Feasibility Study — requires high M&I confidence. Why it applies: the release names the study this estimate supports ### inferred [Link to this fact](https://atlas-extractions.minestarters.com/news/abasca-announces-positive-preliminary-economic-assessment-for-the-loki-flake-gra--cefe43c7-051b-4248-a692-a41b305c7387#fact-resource-facts-3) Loki Flake Graphite Deposit · graphite #### Identity - Project: Loki Flake Graphite Deposit - Commodity: graphite - Region: canada\_sk - Reported Region: Saskatchewan - Ticker: ABA #### Resource scope - Estimate type: resource - Effective date: 2026-04-23T00:00:00.000Z - Reporting standards: ni\_43\_101 - QP Signed: Yes - Qualified person names: Matt Batty - Resource group id: resource:b82c63ca1fa4335a298f - Deposit or zone: Loki Flake Graphite Deposit - Mining method: open\_pit - Ownership percent: 100 % #### Resource Data - Category: inferred - Tonnes: 15830000 - Grade: 6.93 - Grade Unit: % Cg - Contained Metal: 1.1 - Contained Unit: mt - Cutoff Grade: 2.3 - Cutoff Unit: % Cg #### Prior Estimate - Resource Date: 2026-04-23 #### Review - Needs Review: No - Historical: No #### Dates - Event date: 2026-08-19T00:00:00.000Z Reasoning: The updated MRE includes a large inferred resource of 15.83 Mt at 6.93% Cg, which offers future growth potential. However, its inferred nature means it carries higher geological and economic uncertainty, impacting the overall confidence of the PEA. - Positive factor: Large inferred resource provides significant exploration upside and potential for future conversion to higher confidence categories. - Positive factor: Resource estimate is NI 43-101 compliant and signed off by a Qualified Person. - Negative factor: Inferred resources are considered too speculative for economic considerations and cannot be converted to reserves. - Negative factor: The PEA's reliance on a substantial inferred component introduces higher risk and uncertainty. Evidence · table > 15.83 Context: Inferred #### Tags used in scoring **Inferred Resource** Polarity: negative Definition: Speculative category — limited drilling, geological continuity assumed but not confirmed. Cannot support economic studies alone. Why it applies: category is "inferred" **Cut-off Disclosed** Polarity: positive Definition: Cut-off grade used for resource reporting is clearly stated, enabling like-for-like comparison. Why it applies: cutoff\_grade is stated **QP/CP Signed** Polarity: positive Definition: Qualified Person \(QP\) or Competent Person \(CP\) named and signed off — a member of a recognized professional association \(e.g., AusIMM, SME, AIG, P.Geo\) with relevant experience. Why it applies: qp\_signed is true **NI 43-101 Compliant** Polarity: positive Definition: Resource estimate prepared in compliance with NI 43-101 \(Canada\) — high reporting standard. Why it applies: reporting\_standards includes ni\_43\_101 **Resource Update** Polarity: neutral Definition: Revised estimate for an existing resource — compare to prior to assess progress. Why it applies: the release compares against a previous estimate **PEA-Supporting** Polarity: neutral Definition: Resource estimate prepared to support a Preliminary Economic Assessment — early-stage study. Why it applies: the release names the study this estimate supports **DFS-Supporting** Polarity: neutral Definition: Resource estimate prepared to support a Definitive Feasibility Study — requires high M&I confidence. Why it applies: the release names the study this estimate supports ## Metallurgical Results (1) ### flotation [Link to this fact](https://atlas-extractions.minestarters.com/news/abasca-announces-positive-preliminary-economic-assessment-for-the-loki-flake-gra--cefe43c7-051b-4248-a692-a41b305c7387#fact-metallurgical-facts-4) Loki Flake Graphite Deposit · graphite #### Identity - Project: Loki Flake Graphite Deposit - Commodity: graphite - Region: canada\_sk - Reported Region: Saskatchewan - Ticker: ABA #### Test Work - Program Status: preliminary - Test Type: flotation - Processing Route: conventional flotation circuit with staged regrinding - Sample: samples from Abasca deposit #### Recovery - Recovery: 92.3 % - Recovery Basis: to\_concentrate - Conc. Grade: 95 - Conc. Grade Unit: % #### Lab - Laboratory: SGS Lakefield #### Review - Needs Review: No - Historical: No #### Dates - Event date: 2026-08-19T00:00:00.000Z Reasoning: Preliminary test work by SGS Lakefield demonstrated a strong graphite recovery of 92.3% to a 95% Cg concentrate using conventional flotation. This indicates favorable metallurgical characteristics for the Loki deposit, supporting the economic viability outlined in the PEA. - Positive factor: High graphite recovery of 92.3% to concentrate, indicating efficient processing. - Positive factor: Achieved with conventional flotation, suggesting a proven and scalable method. - Positive factor: High concentrate grade of 95% Cg, suitable for market requirements. - Positive factor: Test work conducted by a reputable laboratory \(SGS Lakefield\). - Negative factor: The test program is described as 'preliminary', suggesting further optimization may be needed. - Negative factor: Specific grind size and other process parameters are not detailed in the summary, limiting full assessment. Evidence · table > 92.3 Context: Graphite Recovery to Concentrate #### Tags used in scoring **Mill Route** Polarity: neutral Definition: Processing via mill or concentrator \(CIL, CIP, tank leach, flotation\). Why it applies: processing\_route matches the flotation signal ## How Atlas produces this analysis Minestarters Atlas uses automated extraction to summarize mining announcements, identify reported measurements, and classify supporting evidence. Sentiment reflects the extracted narrative and classification rules; it is an interpretation, not a reported measurement. Evidence quotes and context are provided where available. Missing data, low-confidence results, and review flags indicate limitations. Check the original publisher announcement before relying on an interpretation.