Tonopah Lithium Claims project, US

21st April 2023 By: Sheila Barradas - Creamer Media Research Coordinator & Senior Deputy Editor

Tonopah Lithium Claims project, US

Name of the Project
Tonopah Lithium Claims (TLC) project.

Location
Esmerelda lithium district, north-west of Tonopah, in Nevada, in the US.

Project Owner/s
American Lithium Corp.

Project Description
An independent preliminary economic assessment (PEA) has demonstrated that the TLC project has the potential to become a substantial, long-life producer of low-cost lithium carbonate with the potential to produce either battery-grade lithium carbonate equivalent or lithium hydroxide.

The project is highly amenable for development as a conventional openpit truck-and-shovel operation.

The PEA base case envisions an initial 4.4-million-tonne-a-year processing throughput expanding to 8.8-million tonnes a year. The project will produce 1.46-million tonnes of lithium carbonate equivalent over 40 years.

The PEA alternative case is identical, but with the added production of 1.68-million tonnes a year high-purity magnesium sulphate as a by-product over the life-of-mine.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
In the base case, the project has an estimated pretax net present value (NPV), at an 8% discount rate, of $3.64-billion at $20 000/t lithium concentrate equivalent and an internal rate of return (IRR) of 28.8%, with an initial payback of 3.6 years.

The alternative case has a pretax NPV, at an 8% discount rate, of $6.06-billion at $20 000/t lithium carbonate equivalent, and $150/t magnesium sulphate and an IRR of 38.6%, with a payback of 3.5 years.

Capital Expenditure
Total capital expenditure (capex) is estimated at $1.43-billion in the base case, with initial capital costs estimated at $819-million.

Total capex is estimated at $1.44-billion in the alternative case, with initial capital costs estimated at $763-million.

Planned Start/End Date
Not stated.

Latest Developments
None stated.

Key Contracts and Suppliers
DRA Global and Stantec Consulting (PEA).

Contact Details for Project Information
American Lithium, tel +1 604 428 6128 or email info@americanlithiumcorp.com.