Chile’s Next Sustainable Lithium Producer
Stock Code:
ASX: LPI
Company Exposure:
Lithium
Project Locations:
Chile
Lithium Power (ASX:LPI) is developing Chile’s next high-grade lithium mine, Maricunga, which LPI owns 100%. Maricunga is the highest quality pre-production lithium brine project in South America, and has one of the world’s highest-grade lithium resources at 1,160mg/l lithium and 8,500mg/l potassium for 2.15Mt LCE.
Investment Highlights
STRONG ASSET: MARICUNGA PROJECT
- The Maricunga project is located within the ‘Lithium Triangle’ in northern Chile, home to large and high quality lithium brine deposits
SUSTAINABILITY IN DESIGN
- Green credentials built in: 50% of water needs to be produced by the project and renewable solar energy used to supply power
SUPPLIES HAVE BEEN SECURED
- Water supply secured and port and logistics assessment has been completed
- MOU for the use of existing electricity infrastructure
- Existing international highway
HIGHEST QUALITY
- Test work has produced battery grade Li2CO3 samples, achieving 99.92% purity using brine from pilot evaporation ponds
PROGRESS ON STRATEGIC MILESTONES
- The project is low-risk, with significant expansion potential
- It has expansion potential
EXCELLENT LOCAL & INDIGENOUS RELATIONSHIPS
- New standard for relationships with Indigenous communities and other stakeholders
FULLY PERMITTED FOR STAGE ONE
- High technical environment standards reflected in environmental approvals received from the Chilean authorities in February 2020
SOLID TEAM
- Highly experienced and proven board, management and technical teams in mining, lithium exploration and strategic transactions
- The project is being developed with Tier-1 companies like GEA, Worley, Stantec, etc
MARICUNGA MINERAL RESOURCE ESTIMATE
- The updated resource estimate of 1,905,000t of lithium carbonate equivalent represents close to double the initial resource of 1,020,000t in the 2019 definitive feasibility study
OUTSTANDING ECONOMICS
- Maricunga will be among the most efficient producers, with an OPEX of US$3,718/t. The project is expected to produce 15,200tpa for 20 years with a pre-tax NPV of US$1.97