TSX-V-listed Manganese X has announced positive results from an independent preliminary economic assessment (PEA) for its Battery Hill project, near Woodstock, New Brunswick. The project is set to produce battery-grade high-purity manganese sulphate (HPMSM).
The study determined that Battery Hill will produce 3.2-million tonnes of HPMSM over its 40-year mine life, averaging at 68 000 t/y.
The PEA yielded positive results, with an aftertax net present value, using a 10% discount, of $486-million and an internal rate of return of 25%.
The project’s $350-million in capital costs would be paid back in 2.8 years.
CEO Martin Kepman says that the Battery Hill resource has the potential to be the most impressive manganese property in North America.
“The PEA represents the most significant milestone to date for Manganese X and makes us the forerunner of becoming the first publicly traded company in Canada and the US to commercialise high-purity electric vehicle (EV) quality compliant manganese.
“Thanks to our proprietary extraction process, we can develop a superior quality manganese product by eliminating selenium, considered a toxic pollutant and yet utilised by some of the HPMSM producers worldwide to reduce their costs of production. Given selenium is a highly toxic element, its use negatively impacts the environment and is known to affect the quality of downstream products, particularly for high-end applications such as lithium-ion-battery production. Our final product should be able to justify a premium to the market price,” he says.
Kepman states that the company has been working on corporate development beyond the PEA and is currently in discussion with a number of interested parties.
“This is a very exciting time in history for manganese as it relates to battery chemistry and the EV revolution, making it an equally exciting time for Manganese X. We intend to be at the forefront of a domestic supply as well as meeting the expectations of North American battery manufacturers.”