The budget has been lifted by about C$3 million (US$2.34 million) to C$24 million plus an additional C$3 million for working capital.
The company noted the budget increase while announcing that the construction process for the solar and battery hybrid power plant for phase 1 has commenced.
The hybrid plant, being built, owned, and operated by CrossBoundary Energy, is to consist of a 2.6MW solar PV facility, a 1MWh battery energy storage system, or BESS, and a 3.1MW thermal facility with diesel generators.
NextSource says it will provide up to 33% of the mine's total phase 1 electricity needs from renewable solar energy, with the remainder coming from thermal generators.
"Over the life of the project, we will aim to further reduce our reliance on fossil fuels with the added benefit of lower costs and therefore better project economics," NextSource's president and CEO Craig Scherba said.
Earthworks and civil construction at the Molo mine are progressing to schedule and will be ready for the arrival of the processing plant and auxiliary buildings in June, the company said.
Completion of construction and plant commissioning is expected in Q3, followed by a ramp up period of up to three months to achieve nameplate capacity.
The Molo project has a total combined graphite resource of 141.28 million tonnes at 6.13% total graphite carbon, with a contained ore reserve of 22.44 million tonnes at 7.02%C.
A 2019 updated feasibility study outlined phase 1 producing 17,000 tonnes per annum over the first two years of production and phase 2 producing a total of 45,000tpa by year 3.
Last year, NextSource initiated a technical study aimed at expanded phase 2 porduction capacity to at least 150,000tpa.
The company's share price was quoted as C$2.38 on May 24, having risen 3% day on day. The company has a market capitalization of C$237.34 million.