Name of the Project
Sonora lithium project.

Location
Sonora state, Mexico.

Client
Bacanora Minerals.

Project Description
A feasibility study on the project has confirmed the positive economics and favourable operating costs of 35 000 t/y of battery grade lithium carbonate (Li₂CO₃).

The project has measured and indicated mineral resources estimated at five-million tonnes, comprising 1.9-million tonnes of measured resources and 3.1-million tonnes of indicated resources of lithium carbonate equivalent (LCE) and an additional inferred mineral resource of 3.7-million tonnes of LCE.

The feasibility study envisages an openpit operation using continuous miners to mine the ore zones and a truck-and-shovel fleet to remove the waste material. An estimated 37.1-million tonnes of ore will be mined over the planned 19-year mine life, with a lithium grade of 4 151 parts per million and an average stripping ratio of about 3.4:1 over the life-of-mine.

The process plant has been designed to initially process 1.1-million tonnes a year of ore during Stage 1 of the project, subsequently increasing to an estimated 2.2-million tonnes a year at Stage 2, producing 17 500 t/y and 35 000 t/y of Li₂CO₃ respectively.

The plant design also includes a circuit to produce up to 30 000 t/y of potassium sulphate and/or sulphate of potash product through a series of evaporation and precipitation stages.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The feasibility study estimates a pretax net present value, at an 8% discount rate, of $1.25-billion and an internal rate of return of 26.1%, with a simple payback Stage 1 of four years.

Value
Stage 1 of the project is expected to cost about $419.62-million and Stage 2 $380.26-million.

Duration
Construction is expected to start in the first half of 2018, with production targeted for the first quarter of 2020.

Latest Developments
Bacanora has secured an in-principle undertaking from battery chemicals trader Hanwa to extend its lithium offtake agreement, which will underpin an expansion of the Sonora lithium project.

The offtake agreement will be extended by another five years at a rate of 17 500 t/y of Li₂CO₃ on the same terms as the initial five-year offtake, with formal documentation expected to be completed shortly.

Meanwhile, discussions for additional strategic partners for extra Stage 2 tonnages are continuing.

Construction of the Li₂CO₃ plant is set to start later this year, with commissioning set for 2020.

The company will update the project’s schedule at the end of the front-end engineering design (FEED) process, which is under way.

Bacanora has reported that the FEED of the roaster/kiln and the crystalliser/evaporation/IX, which accounts for about 75% of the total capital cost of the processing plant, are advancing, following the delivery of bulk lithium samples from Sonora to selected vendors.

Further, detailed discussions with engineering, procurement and construction groups for all other parts of the processing plant are also ongoing.

The current FEED schedule is to have designs, cost estimates and process guarantee scopes substantially completed by the end of June, with orders for long-lead items to be placed at the end of the FEED process in the third quarter.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Bacanora Minerals, tel +1 403 237 6122, fax +1 403 237 6144 or email info@bacanoraminerals.com.