PERTH (miningweekly.com) – A scoping study has found that the San Jose lithium/tin project, in Spain, could deliver 15 000 t/y of battery grade lithium carbonate over an initial mine life of 24 years.
ASX-listed Plymouth Minerals on Wednesday reported that the project was expected to require a capital investment of $273-million, with life-of-mine (LoM) C1 cash costs estimated at $5 004/t, without credits.
The San Jose project could generate LoM revenues of up to $2.7-billion, and has a net present value of $401-million and an internal rate of return of 28%.
The battery grade lithium carbonate would be produced at about "half the current lithium price", Plymouth MD Adrian Byass said. The study assumed a life-of-mine sales price of $10 000/t, based on an assessment of price trends and market commentary. The current spot pricing in Europe for +99.5% lithium carbonate is trading between $16 000/t and $20 000/t.
“The scoping study demonstrates that the San Jose lithium/tin project has significant production scale, long mine life, high margins and further upside yet to be factored in through the potential to generate by-product credits, which would further enhance the already very attractive economics at conservative sales price assumptions,” said Byass.
He noted that the company had identified a number of potential upside opportunities for the project, which would allow for the optimisation of economic returns and positioned the company well to be a significant player in the European lithium market.
“Plymouth will now accelerate additional optimisation studies required before moving to a feasibility study over the coming months as outlined in the agreement with our project partner Sacyr.”
Under the terms of the agreement, now that Plymouth has acquired a 50% stake in the project, the company will elect to complete the feasibility study by spending a minimum of €2.5-million to earn a 75% interest in the San Jose project.
The feasibility study is being targeted for completion in the first half of 2018.