Name and Location
Cauchari-Olaroz lithium project, Jujuy, Argentina.
Client
Sociedad Química y Minera de Chile (SQM) in a 50:50 joint venture (JV) with Lithium Americas Corp (Lac).
The JV will come into effect following a capital contribution of $25-million by SQM in exchange for a 50% ownership stake in Minera Exar, a wholly owned subsidiary of Lac.
SQM’s contribution includes $15-million to repay intercompany loans between Minera Exar and Lac; the remaining $10-million will be allocated to project development.
Project Description
Cauchari-Olaroz is believed to be the world’s third-largest lithium brine resource and is fully permitted for immediate construction and development.
The JV is targeting a production capacity of about 40 000 t/y of lithium equivalent in its upcoming development plan investigations.
Since its inception in 2009, Lac has invested more than C$80-million in a resource exploration and project development programme, which includes resource definition, advanced modelling, about 10 000 m of drilling, testing and pumping wells and National Instrument 43-101 technical studies, including a definitive feasibility study (DFS) completed in 2012.
The 2012 DFS was based on a production capacity of 20 000 t/y lithium carbonate.
Net Present Value/Internal Rate of Return
The 2012 DFS estimated a post-tax net present value of $464-million.
Value
Not stated.
Duration
Not stated.
Latest Developments
SQM and Lac intend to immediately advance a work and engineering plan, which considers completion of an updated DFS based on an existing study for Cauchari that was completed by Minera Exar in 2012.
The updated study will evaluate economic feasibility for a project with a nameplate production capacity of about 40 000 t/y of lithium carbonate equivalent.
Depending on the results of the study, the project may be executed in stages.
Key Contracts and Suppliers
None stated.
On Budget and on Time?
None stated.
Contact Details for Project Information
Lac investor relations, tel +1 778 656 5820 or email ir@lithiumamericas.com.