Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) ("Lithium
Americas" or the "Company") is pleased to announce the
publication of the Notice of Intent (“
NOI”) to
prepare an Environmental Impact Statement (“
EIS”)
for the Thacker Pass lithium claystone project (“
Thacker
Pass” or the “
Project”) located in
northwestern Nevada. Thacker Pass is 100% owned by Lithium
Nevada Corp. (“
Lithium Nevada”), a Nevada
corporation that is a wholly-owned subsidiary of Lithium Americas.
The NOI formally commences the National Environmental Policy Act
(“
NEPA”) EIS preparation and public engagement
process by the U.S. Department of the Interior Bureau of Land
Management (“
BLM”).
The NEPA process is designed to help public
officials complete permitting decisions that are protective of the
environment and includes a public engagement process. The
12-month NEPA period is scheduled to include the BLM’s Record of
Decision (“ROD”), representing the BLM’s final
decision on Lithium Nevada’s application for an approved Plan of
Operations. In October 2019, the BLM engaged ICF Jones &
Stokes, Inc. (“ICF”), an experienced NEPA
consultant, to prepare the EIS. The BLM, Lithium Nevada and
ICF have entered into Memorandums of Understanding that define the
timeline and support the overall management of the EIS-development
process.
“The initiation of the EIS process by the BLM is
a major accomplishment and milestone toward developing Thacker Pass
as a low-cost and environmentally responsible source of lithium
chemicals in the US,” commented Jonathan Evans, Lithium Americas’
President and CEO. “This achievement, which commences a mandated
12-month process to complete the EIS, was a team effort that
required the coordination and commitment from the Bureau of Land
Management, local and state government agencies, our partners and
the team at Lithium Nevada.”
“The Thacker Pass Project is being engineered to
produce low-cost, battery-quality lithium products reliably and at
scale, however, the environmental design is a point of pride for
the project team. Our goal is to produce the first carbon
neutral lithium products, representing an innovative benchmark in
the industry,” commented Alexi Zawadzki, CEO of Lithium
Nevada. “Our vision is for a more sustainable battery supply
chain in the US, with cathode and cell manufacturing located in
close proximity to the proposed Thacker Pass mine site.”
The publication of the NOI on January 21, 2020,
follows the final Plan of Operations which was accepted by the BLM
in September 2019. The Plan of Operations includes production of
battery-grade lithium hydroxide and lithium carbonate, lithium
metal (up to 60,000 tons per annum (“tpa”) of
lithium carbonate equivalent (“LCE”)), and battery
manufacturing. The Company is targeting an initial phase
(“Phase 1”) production capacity of approximately
20,000 tpa of battery-quality lithium hydroxide, in addition to
approximately 2,000 tpa of battery-quality lithium
carbonate. The anticipated timing of key permitting milestones
to begin construction in early 2021 are highlighted in Figure
1.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/52fcc9bb-f6b5-409b-894a-64ae45696b4a
The Company’s engagement with government, the
Fort McDermitt Tribe and local stakeholders is planned to continue
over the next year in anticipation of the ROD being issued by early
2021. The ROD will include the agency’s decision, alternatives
considered and the plans for mitigation and monitoring, if
required.
Environmental & Social
Responsibility
Carbon AccountingThe proposed Thacker Pass
mining and metallurgical process is being designed to achieve or
exceed carbon-neutral scope 1 emissions status as defined by the
Greenhouse Gas Protocol (“Scope 1”). The low
carbon footprint is expected due to 1) the unique nature of the
ore, which requires low energy to extract, beneficiate and process,
and; 2) heat from the exothermic process which is designed to be
captured to generate carbon-free electricity and steam. The
cogeneration facility is expected to provide enough electricity to
operate the plant and mine with the potential for excess
electricity to be sold to the grid. Carbon-free steam is expected
to be used in the plant (no natural gas or other fuel is required
to make steam). Furthermore, solar power generation and electric
trucks are also being evaluated to further reduce carbon emissions
beyond Scope 1.
Through innovative design, Thacker Pass is being
developed as a potential model of sustainability in the extraction
and processing of critical minerals required for a low-carbon
economy. Many years of environmental monitoring data was collected
and used to locate project infrastructure in areas of lowest
environmental impact. The sound and air emissions control systems
have been engineered to use the best available technology,
resulting in a design that exceeds regulatory requirements. Within
the proposed processing facility, water recycling is expected to be
employed throughout the facility to minimize consumption (Phase 1
requires approximately the same amount of water as 2-3 alfalfa
irrigation pivots).
Lithium Americas made the decision in 2018 to
move the Project south of the Montana Mountains in order to avoid
disturbance in sensitive ecological areas located within the
mountains. The Company has collected baseline environmental data
over a seven-year period and has provided a full set of baseline
reports to the BLM. The data and related modeling indicate that
there will not be any adverse impact to local streams or related
wildlife habitat, either directly or indirectly, and these data are
being used to draft the EIS.
Community EngagementLithium Americas engaged
with local stakeholders throughout the project definition and
design process in a transparent consultation process. Several
open houses have been held since 2017, with more scheduled in
2020. A Project Engagement Agreement with the local Fort
McDermitt Tribe continues to be in place to ensure that tribal
members are fully engaged and informed of the project, including
employment and training opportunities prior to proposed
construction and operations.
Great Basin Sagebrush Restoration FundThe Great
Basin Sagebrush Restoration Fund founded by Lithium Americas and
the University of Nevada, Reno Foundation is now the largest
research fund of its kind in the US. Progress continues in 2020 on
developing innovative sagebrush restoration technologies in
including coated seeds, genetics and restoration
modeling.
Winnemucca OfficeIn anticipation of construction
commencing, pending permits and financing, a project office in
Winnemucca was established in December 2019. The office is staffed
full time to respond to public questions about the project,
including employment and contracting opportunities.
EmploymentDuring the proposed two-year
construction and commissioning period, it is anticipated that
approximately 1,000 jobs would be created. Approximately 350
high-paying jobs are anticipated during Phase 1 operations.
Northern Nevada has limited career opportunities, which emphasizes
the potential for the Project to provide a positive impact on the
local economy.
Scalability
The lithium deposit hosted in the McDermitt
Caldera has been drilled extensively by Lithium Americas and
heritage owners of the claims.
However, the full extent of the deposit has not
been defined. To this end, Lithium Americas has also submitted a
Plan of Operations for exploration in parallel to mine Plan of
Operations. Approval of this plan would allow Lithium Americas to
explore other areas within Thacker Pass that have potential for
lithium enriched sediments, including areas south of Highway 293
and areas east of the proposed pit (Figure 2).
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/0264d8a3-c499-4bb6-81d8-98e2aa25e3ac
Process Research Facility
Lithium Americas has successfully produced over
5,000 kg of high-quality lithium sulphate, the precursor for
lithium hydroxide and lithium carbonate, at the Company’s process
testing facility in Reno, Nevada. Lithium sulphate has been
sent to crystallization vendors to make battery quality lithium
hydroxide samples and provide the process flow sheet and cost
estimates.
Additional mineralized material from the Thacker
Pass deposit was collected in 2019 from numerous areas of the
proposed pit. These samples, totaling approximately 60 tonnes of
material, represent the various ore types predicted to be
encountered across the proposed pit area. The samples continue to
be processed at the facility to optimize and further increase
confidence in the flow sheet.
Feasibility Study
Building on the results of the National
Instrument 43-101 (“NI 43-101”) Technical Report
on the Pre-Feasibility Study for the Thacker Pass Project, dated
August 1, 2018, Lithium Americas is currently working with
Sawtooth Mining LLC (exclusive mining contractor for Thacker Pass),
TIC-The Industrial Company, a division of Kiewit Corporation, and
professional services firms to produce a feasibility study. The
Company is targeting a Phase 1 production capacity of approximately
20,000 tonnes per annum of battery-quality lithium hydroxide, in
addition to approximately 2,000 tonnes per annum of battery-quality
lithium carbonate. Lithium Americas expects to release a NI 43-101
feasibility study on Thacker Pass by mid-2020.
Financing Strategy
Lithium Americas continues to evaluate a variety
of strategic financing options, including the possibility of a
joint venture partner for the development of Phase 1 of Thacker
Pass. The Company expects to begin a formal financing process
in 2020, which will include the shipment of samples of lithium
hydroxide to potential customers and partners.
Qualified Persons
The scientific and technical information in this
news release has been reviewed and approved by Dr. Rene LeBlanc and
Randal Burns, Qualified Persons for purposes of NI 43-101. Dr.
LeBlanc is the Chief Technical Officer for the Company and Mr.
Burns is a VP Exploration at Lithium Nevada Corp., a wholly-owned
subsidiary of the Company.
Further information about the Project, including
a description of the key assumptions, parameters, description of
sampling methods, data verification and QA/QC programs, methods
relating to resources and factors that may affect those estimates
are contained in the technical report entitled “Technical Report on
the Pre-Feasibility Study for the Thacker Pass Project, Humboldt
County, Nevada, USA” with an effective date of August 1, 2018,
which is available on SEDAR and on the Company’s website.
About Lithium
Americas:
Lithium Americas owns a 50% interest in the
Caucharí-Olaroz lithium project under construction in Jujuy,
Argentina. Lithium Americas through a wholly owned subsidiary,
Lithium Nevada, owns 100% of the Thacker Pass lithium project
located in Nevada and the largest known lithium deposit in the
United States. The Company trades on both the Toronto Stock
Exchange and on the New York Stock Exchange, under the ticker
symbol “LAC”.
For further information contact:
Lithium Americas
Corp. Investor Relations Suite 300 – 900 West
Hastings Street Vancouver, BC, V6C 1E5Telephone:
778-656-5820 Email: ir@lithiumamericas.comWebsite:
www.lithiumamericas.com
Forward-Looking Statements &
Information
This news release contains “forward-looking
information” and “forward-looking statements” (which we refer to
collectively as forward-looking information) under the provisions
of applicable securities legislation. Forward-looking information
can be identified by the use of words such as “seek”, “anticipate”,
“plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”,
“predict”, “propose”, “potential”, “target”, “intend”, “could”,
“might”, “should”, “believe”, “scheduled”, “implement” and similar
words or expressions. All statements, other than statements of
historical fact, are forward-looking information. Examples of
forward-looking information in this news release include, without
limitation, the expected outcome and timing of EIS and permit
applications and other environmental, timing and results of
community engagement and other social matters; the timing and
results of the proposed feasibility study on the Thacker Pass
project; timing, cost, quantity, capacity and product quality of
production at the Thacker Pass Project; addition of a joint venture
partner or other financing options; sufficiency of water rights and
regulatory approvals in connection therewith; estimates of mineral
resources and underlying assumptions related thereto, future
exploration activities and results thereof; development of mineral
resources and mineral reserves; processing and engineering
technology; and patent applications.
Forward-looking information may involve known
and unknown risks, assumptions and uncertainties which may cause
the Company’s actual results or performance to differ materially.
This information reflects the Company’s current views with respect
to future events and is necessarily based upon a number
of assumptions that, while considered reasonable by the
Company today, are inherently subject to significant uncertainties
and contingencies, and accordingly, the Company can give no
assurance that these assumptions and expectations will prove to be
correct. With respect to forward-looking information included in
this news release, the Company has made assumptions regarding,
among other things: reliability of government permitting processes
and stated deadlines, current technological trends; ability to
fund, advance and develop the Project; the ability to operate in a
safe and effective manner; uncertainties relating to receiving and
maintaining mining, exploration, environmental and other permits or
approvals; demand for lithium; impact of increasing competition in
the lithium business, including the Company’s competitive position
in the industry; general economic conditions; stability and support
of legislative, regulatory and community environment in the
jurisdiction where it operates; estimates of and changes to market
prices for lithium and commodities; exploration, development and
construction plans and costs for the Project; estimates of mineral
resources and mineral reserves, including whether mineral resources
will ever be developed into mineral reserves; reliability of
technical data; anticipated timing and results of exploration,
development and construction activities; the ability to achieve
commercial production; and accuracy of budget and construction
estimates.
Forward-looking information also involve known
and unknown risks that may cause actual results to differ
materially, these risks include, among others: the Project may not
be developed as planned, and there is uncertainty as to whether
there will ever be production at the Project; cost overruns; market
prices affecting development of the Project; risks with ability to
successfully secure adequate financing or addition of a joint
venture partner; risks to the growth of the lithium markets;
lithium prices; inability to obtain required governmental permits
and that operations may be limited by government-imposed
limitations; technology risk; inability to achieve and manage
expected growth; political risk associated with foreign operations;
risks associated with not having production experience; operational
risks; changes in government regulations; changes in environmental
requirements; failure to obtain or maintain necessary licenses,
permits or approvals; insurance risk; receipt and security of
mineral property titles and mineral tenure risk; changes in project
parameters; uncertainties associated with estimating mineral
resources and mineral reserves, including uncertainties regarding
assumptions underlying such estimates; whether mineral resources
will ever be converted into mineral reserves; opposition to
development of the Project; surface access risk; geological,
technical, drilling or processing problems; liabilities and risks;
health and safety risks; unanticipated results; unpredictable
weather; unanticipated delays; reduction in demand for lithium;
inability to generate profitable operations; intellectual property
risks; dependency on key personnel; currency and interest rate
fluctuations; and volatility in general market and industry
conditions. Additional risks, assumptions and other factors are set
out in the Company’s management discussion analysis and most recent
annual information form, copies of which are available on SEDAR at
www.sedar.com.
Although the Company has attempted to identify
important risks and assumptions, given the inherent uncertainties
in such forward-looking information, there may be other factors
that cause results to differ materially. Forward-looking
information is made as of the date hereof and the Company does not
intend, and expressly disclaims any obligation to, update or revise
the forward-looking information contained in this news release,
except as required by law. Accordingly, readers are cautioned not
to place undue reliance on forward-looking information.
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