Neo Lithium Corp. (TSXV: NLC) has obtained positive results of a National Instrument 43-101 Feasibility Study (FS) for the production of lithium carbonate from its wholly owned Tres Quebradas lithium brine project (3Q Project) in Catamarca Province, Argentina.
The Technical Report, which is currently on QP review stage, was prepared by Worley, a leading global provider of professional project and asset services in the energy, chemicals and resources sectors with extensive experience in the design and construction of some of the largest and lowest cost lithium brine processing facilities in Chile and Argentina.
The resource and reserve estimate was completed by brine resource and reserve experts Groundwater Insight Inc.
“In a very short time since its discovery in December 2015, we have achieved every significant milestone at the 3Q Project on time and on budget. We have identified, defined, and confirmed one of the most valuable lithium resources in the world with one of the lowest projected operating costs and capital costs in the industry,” President and CEO, Waldo Perez, said.
“Our teams in Argentina and Canada have done an excellent job in driving this project forward. We now deliver a project ready to be built to Zijin Mining Group Co., Ltd. at a significant premium to the prevailing trading price immediately prior to announcement of the transaction that provides significant value to our shareholders.
The FS represents a comprehensive study of the technical and economic viability of the 3Q Project and has advanced to a stage where a preferred processing route has been established, and an effective method of lithium extraction has been determined.
- $1.129 billion after-tax NPV with 8% discount rate and a 39.5% IRR at an average price $12,321 /t LCE with a 50-year life of mine and payback of 2 years and 3 months from commencement of production
- Measured and indicated resources of 1.747 Mt of LCE with an average 923 mg/L Lithium with 800 mg/l cut off and 5.369 Mt of LCE with 637 mg/L Lithium with 400 mg/l cut off
- Proven and probable reserves of 1,671,900t of LCE with an average 786 mg/L Lithium for life of mine production of 50 years and 769,613 t of LCE with an average 912 mg/L Lithium for the first 20 years of production
- Average annual production of 20,000t of LCE (battery grade) for the first 20 years with significant potential to expand, with 50year life of mine reserves being only 31% of entire resource
- Low pre-production capital cost of $370.5 million (excluding deferred and sustaining capital costs) and low operating costs of $2,954/t of LCE
- Industry proven processing, using conventional evaporation pond operations followed by concentrated brine purification and precipitation of lithium carbonate
Capacity for the feasibility study remains at 20,000 tonnes per year, but the design footprint for ponds and plant already considers an expansion to 40,000 tonnes per of LCE per year since the resource and reserve is large enough to justify larger production by shortening the mine life.
For further information please visit: https://www.neolithium.ca