Abasca Announces Positive Preliminary Economic Assessment for the Loki Flake Graphite Deposit: After-Tax NPV of US$130 Million and 16.7% IRR
Abasca’s preliminary economic assessment confirms $130m graphite economics despite $307m capital expenditure and ongoing going concern risks.
Abasca Resources Inc. released a Preliminary Economic Assessment (PEA) for its 100%-owned Loki Flake Graphite Deposit in Saskatchewan on August 19, 2026. The assessment outlines a 19-year open-pit mine with an after-tax net present value (NPV) of US$130 million and an after-tax internal rate of return (IRR) of 16.7%, based on a base case graphite price of US$1,450 per tonne.
Capital costs total US$307 million, comprising US$216 million in initial capital, US$64 million in sustaining capital, and US$27 million in closure costs. Operating costs are estimated at US$46.34 per tonne processed.
The updated mineral resource estimate stands at 6.99 million tonnes of Indicated material at 8.27% Cg and 15.83 million tonnes of Inferred material at 6.93% Cg. Management plans to advance the project toward a Feasibility Study (FS), focusing on technical data acquisition, environmental impact assessments, and permitting.
Abasca Resources Inc. (ABA) announced the Preliminary Economic Assessment (PEA) on May 26, 2026, with the August 19 release aligning with the late summer 2026 target set in prior MD&A filings. The assessment confirms the project's technical viability and outlines a clear path to production, presenting solid economics for a pre-revenue explorer.
However, the project faces a significant funding gap. The total capital expenditure (capex) requirement stands at US$307 million, while the company’s cash position was just $1.5 million as of April 2026. The PEA validates the project but does not immediately resolve the capital raise requirement or the going concern risk. As the milestone was already priced in, the market reaction is expected to be muted.
Abasca Resources Inc. (TSXV: ABA) is a Canadian exploration and development company focused on critical minerals. Its flagship asset is the Loki Flake Graphite Deposit at the Key Lake South Project in northern Saskatchewan. The deposit is located 15 km south of historical Key Lake mill infrastructure, offering potential synergies with existing regional infrastructure. The project has completed a Preliminary Economic Assessment (PEA) and is transitioning to a Feasibility Study and permitting phase.