ASX- and Nasdaq-listed Elevra Lithium confirms in a prefeasibility study (PFS) that an expansion project at the North American Lithium (NAL) mine, in Québec, can significantly expand yearly spodumene concentrate volumes and reduce unit operating costs.

Elevra plans to deliver a three-stage brownfield expansion development, with Stage 1 increasing plant throughput to the currently permitted rate of 4 500 t/d from mid-2027, Stage 2 increasing milling capacity to 6 500 t/d from mid-2028 and Stage 3 delivering a permanent crushing solution aligned with increased milling capacity by mid-2029.

On a post-expansion basis, Elevra's yearly spodumene production can average 373 000 t/y, which is nearly double a no-expansion scenario.

"The staged development approach allows us to bring additional production online from mid-2027, by progressively increasing throughput and capturing operating efficiencies while managing project execution and prudent capital deployment," says Elevra CEO and MD Lucas Dow.

NAL's life-of-mine C1 cost of $649/t, or C$876/t, can reduce to $630/t, or C$851/t, while post-expansion all-in sustaining costs can total $680/t, or C$918/t.

The total initial capital expenditure required for the NAL expansion project is C$366-million, or $271-million.

Notably, the PFS confirms that the NAL expansion can deliver an after-tax net present value (NPV) of C$3.2-billion, or $2.3-billion, for the mine. On an expansion-only basis, its NPV is C$943-million, or $699-million, its internal rate of return is 49.9% and payback period is 34 months.

The company's existing ore reserves of 47.2-million tonnes grading 1.12% lithium oxide underpin the NAL expansion production profile over 20 years.

Elevra says the PFS has ultimately demonstrated that the NAL expansion can increase production, reduce unit costs and generate significant incremental value from an existing operating asset and established infrastructure.

The expansion also remains fully funded through Elevra's strategic financing package that was announced in May.