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TORONTO (miningweekly.com) – Quebec-based lithium/tantalum project developer Critical Elements on Wednesday said that it had started shipping samples of lithium concentrate to a number of users for analysis and validation of the product specifications in its efforts to secure long-term offtake partners for its flagship Rose project.
The Montreal-based firm said that concentrate samples had a low iron content, which was specifically required by certain users.
At the same time, Critical Elements would launch a programme over the coming months to produce a number of lithium carbonate samples. These samples would be shipped to battery manufacturers that the company met with in the past year, for specification analysis and validation.
Further, the company said that it was also pursuing discussions with a number of potential users of lithium carbonate and tantalum with the goal of entering into long-term sales contracts.
Lithium is critical to the future growth of hybrid or electric car production and mobile consumer electronic devices.
As with a number of minor metals, new technologies, leading to the miniaturisation of electronic devices, have resulted in increased use of tantalum. Tantalum-based capacitors, in particular, are on the rise and are increasingly used in automotive electronics, mobile phones, personal computers and wireless devices.
It is understood that the management team will be in Japan later this month to personally follow up on validation testing with battery manufacturers.
ROSE GROWTH
Critical Elements on Tuesday said that it had completed the sale of its 50% interest in the Croinor property to Monarques Resources, in exchange for a 100% interest in the Amiral, Arques, Bourier, Caumont, Dumulon, Duval, Lemare, Nisk, Rosebay and Valiquette properties and 500 000 common shares of Monarques.
The James Bay properties cover a total area of 520 km2 near the Rose project, with some as them described as having “promising” exploration potential.
A recent financial analysis of the Rose project based on price forecasts of $260/kg for tantalum pentoxide (Ta2O5) contained in a tantalite concentrate and $6 000/t for lithium carbonate (Li2CO3) showed an estimated after-tax internal rate of return (IRR) of 25% for the Rose project, with an estimated net present value (NPV) of C$279-million at an 8% discount rate.
The payback period is estimated at 4.1 years. The pre-tax IRR was estimated at 33% and the NPV at $488-million at a discount rate of 8%.
The operation is expected to produce 26 606 t/y of high-purity (99.9% battery grade) Li2CO3 and 206 670 lb/y of Ta2O5 over a 17-year mine life.
The project hosts a current Canadian National Instrument 43-101-compliant indicated resource of 26.5-million tonnes of 1.30% lithium oxide (Li2O) equivalent or 0.98% Li2O and 163 parts per million (ppm) Ta2O5 and an inferred resource of 10.7-million tonnes of 1.14% Li2O equivalent or 0.86% Li2O and 145 ppm Ta2O5.