Name of the Project
Grota do Cirilo project dense-media separation (DMS) production plant.

Location
Minas Gerais, Brazil.

Project Owner/s
Sigma Lithium Resources.

Project Description
An updated feasibility study has demonstrated that Phase 1 of the project is financially robust, even as a standalone project.

The project has proven and probable reserves of 54.8-million tonnes at 1.44% of lithium oxide, and measured and indicated resources of 85.6-million tonnes grading 1.43% lithium oxide. Inferred mineral resources are estimated at 8.6-million tonnes grading 1.43% lithium oxide.

Phase 1 will involve material from the Xuxa deposit (the Phase 1 mine) to be processed by Sigma Lithium’s green tech production plant (the Phase 1 plant), which, in turn, will produce battery-grade sustainable lithium, creating a fully integrated lithium operation.

Phase 1 is expected to produce 270 000 t/y of high-purity 5.5% lithium concentrate over an eight-year mine life.

Phase 2 will double output to 531 000 t/y of high-purity 5.5% lithium concentrate. This phase will also leverage infrastructure built for Phase 1, and dense-media separation testing results validate that Phase 2 material can be processed in a similar way as Phase 1.

Potential exists to expand the project beyond the Phase 1 and 2 mines being developed. Phase 3 will expand production to about 766 000 t/y.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $15.3-billion and an internal rate of return of 1 282%.

Capital Expenditure
Phase 1 will cost an estimated $123.1-million to implement. Phase 1 capital expenditure includes key items to ensure a seamless transition to Phase 2.

Planned Start/End Date
The first shipment from Phase 1 is planned for May 2023. Construction of Phase 2 could start as early as 2023.

Latest Developments
Sigma Lithium has produced its first lithium at the Grota do Cirilo mine.

The Sigma technical team will now turn its attention to ramping up throughput to full production capacity, which it expects to achieve by July.

The company aims to send its first shipment of 15 000 t of lithium in May.

Sigma is continuing with detailed engineering work on the Phase 2 and 3 Greentech plant expansion, targeting the triple production of green lithium, from 270 000 t/y to 766 000 t/y, if supported by a feasibility study currently being conducted.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Sigma Lithium Resources, tel +55 11 2985 0089 or email contact@sigmaca.com/Investors: ir@sigmaca.com.