Name of the Project
Sonora lithium project.

Location
Sonora state, Mexico.

Project Owner/s
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.

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 lithium carbonate 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.

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

Planned Start/End Date
Production is targeted for 2021.

Latest Developments
Bacanora expects to complete the finance package for its Sonara project in the first half of next year, as it keeps its focus on starting production at the mine “at the earliest opportunity”.

“Thanks to the progress made over the last 12 months, Bacanora has a cash-rich balance sheet which enables us to invest in long-lead items and commence bulk earthworks. Our focus remains to start production at Sonora at the earliest opportunity, as we look to realise the project's potential and, in the process, generate value for all our shareholders,” chairperson Mark Hohnen has said.

In the past year, Bacanora has secured one of the world’s largest lithium producers, Ganfeng Lithium, as a 29.9% cornerstone investor, as well as a joint venture development partner with a 22.5% direct investment in the project. For the interest in the company and the project, Ganfeng paid Bacanora £21.96-million.

It also has two guaranteed offtake agreements with Ganfeng and Hanwa in place for 100% of the Stage 1 production and with Ganfeng for 75% of the Stage 2 production.

Bacanora also still has the continued support of its earliest institutional investor, M&G, which increased its investment in the company to 19.9%.

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.