Name of the Project
Sonora lithium project.

Location
Sonora state, Mexico.

Project Owner/s
Sonora Lithium, a subsidiary of Bacanora Minerals.

In November 2020, Ganfeng exercised its option to increase its stake in the holding company of the Sonora project from 22.5% to 50%.

Bacanora will remain as the project operator in Sonora, while Ganfeng will be responsible for leading the engineering, procurement and construction (EPC) of the project.

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
The joint venture partners are aiming to start production in 2023.

Latest Developments
Ganfeng has completed a flowsheet design for the production of battery-grade lithium at the Sonora. The Chinese group is now integrating this work into the final engineering design and remains on schedule to deliver its final engineering packages to Bacanora during the first half of 2021.

Key Contracts, Suppliers and Consultants
Ganfeng (EPC).

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