Lithium Ionic Files Technical Report for Preliminary Economic Assessment and Updated Mineral Resource Estimate for the Bandeira Lithium Project, Minas Gerais, Brazil
December 01 2023 - 6:00AM
Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE: H3N) (“Lithium
Ionic” or the “Company”) reports that it has filed the independent
technical report (the “Technical Report”) related to the
Preliminary Economic Assessment ("PEA") and Mineral Resource
Estimate announced on October 19, 2023, for its 100%-owned Bandeira
lithium Project (“Bandeira”), located in Minas Gerais State,
Brazil.
The Technical Report, titled
“Preliminary Economic Assessment for the Bandeira Lithium
Project, Minas Gerais State, Brazil” was prepared by GE21
Consultoria Mineral Ltda. (“GE21”) in accordance with National
Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI
43-101") and has an effective date of August 30, 2023.
The PEA results support a long-life and low-cost
spodumene concentrate mining project. Highlights include:
- Post-tax Net
Present Value (“NPV”)8% of $1.6 billion (approximately C$2.2
billion)
- Post-tax
Internal Rate of Return (“IRR”) of 121%
- Underground mine
scenario processing 1.3Mtpa of ore over a 20-year mine life
- After-tax
payback of 14 months
- Avg. LOM annual
production of 217,700t of high-quality spodumene concentrate at
5.5% Li2O (“SC5.5”) equivalent (187,230 tpa SC5.5, in addition to
56,860 tpa of spodumene tails concentrate at 3% Li2O, or
“SC3”)
- Total capital
expenditure (“CAPEX”) of $233 million (including a 25%
contingency)
- Pre-tax annual
average free cash flow of $243 million
- All-in LOM
operating costs (“OPEX”) of $349/t of spodumene concentrate
SC5.5
- The PEA results
were based on an updated mineral resource estimate for Bandeira of
13.72Mt grading 1.40% Li2O, containing 474,892 tonnes of Lithium
Carbonate Equivalent (“LCE”) in the Measured and Indicated
(“M&I”) category, as well as Inferred resources of 15.79Mt
grading 1.34% Li2O, or 523,118 tonnes of LCE
Note: Base case parameters assume SPO 5.5% Li2O
price of $1,859/t and exchange rate of US$5.00 /R$. All currencies
are reported in US dollars unless otherwise specified.
The Company is currently undertaking an
independent NI 43-101 compliant Feasibility Study (“FS”), including
an updated MRE, for Bandeira which is expected to be completed in
early 2024.
On November 21, 2023, the Company submitted the
application for the Concomitant Environmental and Installation
License (“LAC”, or Licença Ambiental Concomitante in Portuguese) to
the State of Minas Gerais. The LAC approval would result in the
environmental and social license, together with an authorization to
begin construction of the Bandeira lithium Project.
About Lithium Ionic Corp.
Lithium Ionic is a Canadian mining company
exploring and developing its lithium properties in Brazil. Its
Itinga and Salinas group of properties cover 14,182 hectares in the
northeastern part of Minas Gerais state, a mining-friendly
jurisdiction that is quickly emerging as a world-class hard-rock
lithium district. Its Feasibility-stage Bandeira Project is
situated in the same region as CBL’s Cachoeira lithium mine, which
has produced lithium for +30 years, as well as Sigma Lithium
Corp.’s Grota do Cirilo project, which hosts the largest hard-rock
lithium deposit in the Americas.
Qualified Persons
The technical information in this news release
regarding the PEA and MRE has been reviewed and approved by Carlos
José Evangelista Silva (MAIG Membership Number 7868) for the MRE,
and Guilherme Gomides Ferreira (MAIG Membership Number: 7586) for
the PEA, both from GE21 and are “qualified persons” as defined in
NI 43-101. All other scientific and technical information in this
news release has been reviewed and approved by Carlos Costa, Vice
President Exploration of Lithium Ionic and Blake Hylands, CEO and
director of Lithium Ionic, who are both “qualified persons” as
defined in NI 43-101.
Investor and Media
Inquiries:
+1 647.316.2500info@lithiumionic.com
Cautionary Note Regarding
Forward-Looking Statements
This press release contains statements that
constitute “forward-statements.” Such forward looking statements
involve known and unknown risks, uncertainties and other factors
that may cause the Company’s actual results, performance or
achievements, or developments to differ materially from the
anticipated results, performance or achievements expressed or
implied by such forward-looking statements. Although the Company
believes, in light of the experience of its officers and directors,
current conditions and expected future developments and other
factors that have been considered appropriate that the expectations
reflected in this forward-looking information are reasonable, undue
reliance should not be placed on them because the Company can give
no assurance that they will prove to be correct. When used in this
press release, the words “estimate”, “project”, “belief”,
“anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or
“should” and the negative of these words or such variations thereon
or comparable terminology are intended to identify forward-looking
statements and information. The forward-looking statements and
information in this press release include information relating to
the prospectivity of the Company’s mineral properties, the economic
viability of the Bandeira, the mineralization and development of
the Company’s mineral properties, the Company’s exploration program
and other mining projects and prospects thereof, the Company’s
ability to complete a Feasibility Study, the Company’s ability to
complete an environmental impact assessment and obtain the
requisite permitting and approvals and the Company’s future plans.
Such statements and information reflect the current view of the
Company. Risks and uncertainties that may cause actual results to
differ materially from those contemplated in those forward-looking
statements and information. By their nature, forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause our actual results, performance or
achievements, or other future events, to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. The forward-looking
information contained in this news release represents the
expectations of the Company as of the date of this news release
and, accordingly, is subject to change after such date. Readers
should not place undue importance on forward-looking information
and should not rely upon this information as of any other date. The
Company undertakes no obligation to update these forward-looking
statements in the event that management’s beliefs, estimates or
opinions, or other factors, should change.
The PEA is considered preliminary in nature and
includes Inferred Mineral Resources that are considered too
speculative, geologically, to have the economic considerations
applied that would enable classification as Mineral Reserves. There
is no certainty that the conclusions within the PEA will be
realized. The PEA is based on the material assumptions outlined in
the Technical Report. These include assumptions about the
availability of funding. While the Company considers all of the
material assumptions to be based on reasonable grounds, there is no
certainty that they will prove to be correct or that the range of
outcomes indicated by the PEA can be achieved. No mineral reserves
have been estimated for Bandeira. Mineral Resources are not Mineral
Reserves and do not have demonstrated economic viability.
Information and links in this press release
relating to other mineral resource companies are from their sources
believed to be reliable, but that have not been independently
verified by the Company.
Neither the TSXV nor its Regulation
Services Provider (as that term is defined in the policies of the
TSXV) accepts responsibility for the adequacy or accuracy of this
press release.
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