Name and Location
Pilgangoora lithium project, Pilbara, Australia.

Client
Altura Mining.

Project Description
The project has an estimated mineral resource of 25.2-million tons at 1.23% lithium oxide (Li₂O).

Following the completion of a project scoping study in 2012, Altura believes there is strong potential for the Pilgangoora deposit to be mined and for a highly saleable spodumene concentrate to be recovered.

The scoping study has targeted the establishment of a mine and processing plant to produce 830 000 t/y of ore to produce up to 150 000 t/y of spodumene concentrate at +6.0% Li₂O.

Net Present Value/Internal Rate of Return
The 2012 study estimated a net present value (NPV), at a discount rate of 12%, of A$93.2-million and an internal rate of return of 52%.

Value
The scoping study has estimated capital expenditure for the project’s development, including the processing plant and a 15% allowance for mine infrastructure, at A$96.3-million.

Duration
Not stated.

Latest Developments
Following Altura’s recent capital raising campaign, the company is now fully focused on fast-tracking the project and is formally starting the feasibility study.

Several stages of the study are planned to run concurrently for the remainder of the 2015 calendar year.

Proposals have been received for some parts and formal contracts are planned to be awarded to successful service providers in the coming weeks. The feasibility study and mining study will focus on indentifying discrete high-grade areas of the deposit that are amenable to mining in a low-cost and higher-grade scenario, and allow for a higher return on the project and a higher project NPV.

The aim of the mining study is to identify a high-grade feedstock for the initial years of mining production of 1.7% to 1.9% Li₂O.

Key Contracts and Suppliers
Mineral Engineering Technical Services (scoping study).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Altura Mining, tel +61 7 3814 6900, fax +61 7 3814 6911 or email cosec@alturamining.com.
Mineral Engineering Technical Services, tel +61 8 9421 9000, fax +61 8 9325 8311 or email info@metsengineering.com.