TSX-V-listed Plateau Energy Metals this week shared its Falchani project preliminary economic assessment (PEA), which finds that the project can become a large, long-life producer of low cost and battery-grade lithium carbonate (Li2CO3).
The PEA envisions an average production capacity of about 63 000 t/y over 33 years, with steady state production being able to reach 85 000 t/y of Li2CO3.
The company highlighted that the initial capital expenditure on the project would be about $587-million, with an internal rate of return of 19.7% and a 4.7-year payback period.
At a base case of $12 000/Li2Co3, the project has a net present value of $1.55-billion.
The project has low second-quartile operating costs of an average of $3 958/t of Li2CO3 over its mine life.
“The battery supply chain is evolving and growing rapidly and as a result, significant amounts of lithium chemical supplies for batteries are required to meet the over $450-billion of capital committed by vehicle manufacturers and battery plants.
“What we have at Falchani is a project that has the potential to respond as the market grows, with a low impurity battery grade lithium chemical product, a long mine life set to last through cyclical price environments, and importantly, the potential to be one of the greener lithium projects in the future,” said Plateau CEO Alex Holmes.