Name and Location
Rose tantalum/lithium project, Quebec, Canada.

Client
Critical Elements.

Project Description
The Rose project comprises an indicated resource of 26.5-million tonnes, grading 0.98% lithium oxide and 163 parts per million (ppm) tantalum pentoxide. Inferred mineral resources total 10.7-million tonnes, grading 0.86% lithium and 145 ppm tantalum pentoxide. The development of a 1.5-million-tonne-a-year openpit mine using diesel hydraulic equipment and the construction of a concentrator at the mine site, including crushing, grinding, flotation circuits, with a nominal capacity of 4 600 t/d of ore at 90% availability are proposed.

The construction of a lithium carbonate plant at the mine site is also proposed. A flotation process will be used to concentrate the lithium and tantalum minerals into a high-grade mixed concentrate. The tantalite will be separated from this concentrate by high-gradient magnetic separation. The nonmagnetic fraction containing the lithium mineral (spodumene) will be treated to produce pure lithium carbonate.

A preliminary economic assessment (PEA) was completed on the project in November 2011, estimating total production of 452 306 t of lithium carbonate and 1.59-million pounds of tantalum pentoxide over a 17-year mine life.

Value
The PEA on the project estimated preproduction costs at $268.6-million.

Duration
The project was originally slated to begin production in 2015, but will probably only start in 2016.

Latest Developments
Critical Elements has postponed the expected first production from its flagship Rose project by about a year, as it focuses on securing a deal with an offtake partner, which, in turn, will enable the junior to better negotiate financing to construct the mine.

According to CEO Jean-Sébastien Lavallée, the tough financial markets have set the project back “a bit”.

In October 2012, Critical Elements reported that it expected to finalise a bankable feasibility study (BFS) for the Rose project by the first quarter.

However, this study is now only expected late in the fourth quarter, which means that production, originally slated for 2015, will probably start only in 2016. The company had so much confidence in its resource that it progressed the project to a BFS after completing a PEA in November 2011.

Critical Elements plans to use the C$1.6-million it recently raised through an unbrokered private placement to construct a trial plant at the project site this year, with which it aims to produce larger samples of high-purity lithium carbonate and tantalum, and engage potential offtake partners with.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Critical Elements, tel +1 514 904 1496 or fax +1 514 904 1597.