(Kitco News) - Critical Elements Lithium (TSXV:CRE) today announced positive results of a new feasibility study on the Rose lithium-tantalum project in Eeyou-Istchee - James Bay, Québec.
The company said that the project’s feasibility study delivers an after-tax NPV of US$1,915 million (at 8% discount rate) and after-tax IRR of 82.4%, with average price assumptions of US$4,039 per tonne technical grade lithium concentrate, US$1,852 per tonne chemical grade lithium concentrate, US$130 per kg tantalum pentoxide (Ta2O5).
The study projects an average production (Year 2 to Year 16) of 173,317 tonnes of chemical grade 5.5% spodumene concentrate, average production of 51,369 tonnes of technical grade 6.0% spodumene concentrate, and average production of 441 tonnes of tantalum concentrate.
Expected life of mine is 17 years, with average operating costs of US$74.48 per tonne milled and US$540 per tonne of concentrate (all concentrate production combined).
The company said that estimated initial capital cost is $US$357 million before working capital, adding that anticipated construction time to start of production is 21 months.
The new feasibility study incorporates a standard truck and shovel open-pit mining operation and conventional lithium processing technologies.
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The company noted that the project will produce technical grade spodumene concentrate for the glass and ceramics industry and chemical grade spodumene concentrate for conversion for use in batteries for e-mobility, as well as a tantalite concentrate.
Critical Elements indicated it is advancing the wholly owned, high purity Rose lithium project in Québec. Rose is the corporation's first lithium project to be advanced within a land portfolio of over 700 square kilometers.
The project has received approval from the Federal Minister of Environment and Climate Change. The company is working to obtain similar approval under the Québec environmental assessment process.
