NRG files PEA for Argentina lithium project
TSX-V-listed NRG Metals has filed its preliminary economic assessment (PEA) for the Hombre Muerto North (HMN) lithium project, which company president Adrian Hobkirk says “firmly establishes” the project as having “significant potential”.
The HMN project’s main attributes are its relatively small environmental footprint, a short build time and excellent grades, Hobkirk said in a media statement on Monday.
The PEA report, completed by Knight Piesold Consulting and JDS Energy and Mining, provides support for the company to proceed with development plans for a 5 000 t/y lithium carbonate plant in Salta province.
The operating expenditure cash operating costs are estimated to be $3 125/oz.
The study envisions a $93.4-million project, which will be paid back in less than three years.
HMN has an aftertax net present value, at an 8% discount rate, of $217-million and an aftertax internal rate of return of 28%.
NRG points out that the project is located with easy access to energy, and on a salar of development activity. Australia’s Galaxy Resources recently sold the land surrounding the HMN project to Korean conglomerate Posco for $280-million and is continuing to develop its remaining portion of the salar, referred to as the Sal da Vida project.
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