ASX-listed Wildcat Resources highlights in a definitive feasibility study (DFS) on the Tabba Tabba project its potential as Australia’s next large-scale lithium development project.

The DFS, which is based on production of spodumene concentrate grading 5.5% lithium from the Leia and Luke orebodies only, finds an after-tax net present value of A$1.5-billion, an internal rate of return of 28.4% and an accelerated ramp-up in production for early cash generation.

The DFS contemplates a ramp-up to 600 000 t/y of output in year three of operations, which is four years earlier than the ramp-up envisioned by the project's 2025 prefeasibility study (PFS).

The new study accelerates cash generation and brings forward about one-million tonnes of spodumene concentrate production, enabling about A$1-billion of additional after-tax free cashflow by 2035, compared with the 2025 PFS.

At a base case price of $1 500/t, Tabba Tabba can generate life-of-mine free cashflow of about A$3.53-billion, or A$309-million a year, for pre-production capital costs of A$774-million and a payback period of 3.8 years.

Wildcat's metallurgical testwork has confirmed the ability to produce a 5.5% lithium oxide spodumene concentrate at 75.7% recovery. The financial model in the DFS uses a conservative recovery of 74%.

Moreover, Tabba Tabba is envisioned to have a capital intensity of A$1 662/t for SC6-equivalent concentrate. The DFS is based on a probable ore reserve of 48.3-million tonnes grading 0.97% lithium oxide, comprising 79% from the Leia openpit and 21% from underground at the Luke and Leia deposits combined.

"The work completed as part of the DFS has significantly derisked key aspects of the project, including mining, metallurgy and processing, and has provided a clear pathway to develop Tabba Tabba.  Work has already started on detailed design and engineering to continue moving the project towards a final investment decision (FID)," says Wildcat project director James Dornan.

These compelling DFS results confirm that Tabba Tabba is a world-class project and position Wildcat as Australia’s next major lithium producer, Dornan adds.

MD AJ Saverimutto notes the DFS shows improvement across several important metrics compared to the 2025 PFS, including on the project's value, returns, payback period and cashflow generation.

"With a strong cash position of $76-million following our recent capital raise, we are fully funded through to a FID on this project and we look forward to moving into the next stages of development.”