Lithium exploration and development company Power Minerals has announced positive results from a preliminary economic assessment (PEA) completed for the Rincon salar – a key part of its Salta lithium project in the lithium triangle of Argentina.
The PEA results, the ASX-listed company says, confirm the Rincon salar’s potential to become a significant long-life supplier of high-purity, battery-grade lithium carbonate equivalent (LCE), producing 7 061 t/y of LCE over an initial 14 years.
The PEA forecasts a pretax net present value of $501.85-million, with a payback of three years, and an internal rate of return of 42%.
The assessment calculates capital expenditure of $216-million.
“The outcome of the PEA is outstanding validation of our demonstrated commitment to the rapid development of the Salta lithium project,” said MD Mena Habib.
The Salta project consists of five salars (salt lakes) that sit within seven mining leases, over a total project area of 147.07 km². The project’s Incahuasi salar is located immediately adjacent to Ganfeng Lithium’s project and the Rincon salar is adjacent to Rincon Mining, recently acquired by Rio Tinto, for $825-million.