Abasca Resources has released the results of the Preliminary Economic Assessment (PEA) for the Loki Flake Graphite deposit, located within the Key Lake South (KLS) project in northern Saskatchewan, Canada. The verdict is clear: an after-tax net present value of USD 130 million and an internal rate of return of 16.7% — figures that move the deposit from exploratory asset to a credible development prospect.
The deposit is wholly owned by Abasca, which acquired a 100% interest in the KLS project through a reverse takeover. The project comprises 12 contiguous mineral claims covering approximately 23,977 hectares, located less than 15 km south of the Key Lake mill — the processing facility that currently handles ore extracted from Cameco’s McArthur River mine. That location is no minor footnote: proximity to existing infrastructure reduces development costs and streamlines logistics. Provincial Highway 914 runs through the project, ensuring year-round access.
Current resources at the Loki deposit stand at 6.99 million indicated tonnes grading 8.27% graphite carbon (Cg), plus 15.83 million inferred tonnes at 6.93% Cg. These figures represent a substantial increase over the initial April 2025 estimate of 11.31 Mt inferred at 7.65% Cg. Drilling campaigns conducted in 2025 and 2026 extended the strike length of the mineralized structure from approximately 500 metres to nearly 1,400 metres — almost three times the original footprint. These updated figures were incorporated into the mineral resource estimate (MRE) underpinning the PEA, completed by Tetra Tech Canada.
The geological setting adds a dimension of particular relevance to the nuclear sector. The graphite deposit overlies rocks of the Wollaston-Mudjatik Transition Zone (WMTZ), the same geological corridor that hosts some of the world’s highest-grade uranium deposits. Athabasca Basin uranium mineralisation typically occurs at the unconformity between the sedimentary basin and the WMTZ crystalline basement, frequently associated with strongly graphitic fault zones. The KLS project sits within the same regional low-magnetic anomaly structure and, as the company notes, “hosts over 50 km of prospective conductors for potential uranium mineralization.” Graphite and uranium here share not only the same geography, but the same underlying geological architecture.
The PEA was developed under the strategic oversight of High Grade Mining Consulting and covers the conceptual mine plan, the metallurgical flowsheet for producing high-quality flake graphite concentrate, and infrastructure analysis. The supporting technical report will be filed on SEDAR+ within 45 days of the results announcement. Abasca had already flagged material news releases in July and August 2026, confirming a development timeline that continues to advance on schedule.
Should the PEA progress to a full feasibility study, the Loki deposit could become a strategic supplier of natural graphite for battery supply chains while simultaneously opening the door to uranium exploration at depth within the KLS project. For countries increasingly focused on critical raw material security, tracking developments in the Athabasca Basin is far from an academic exercise — it is precisely in regions like this that the supply chains of the next decade are being shaped.
