VANCOUVER, BC, Nov. 15,
2022 /CNW/ - Rock Tech Lithium Inc. (TSXV:
RCK) (OTCQX: RCKTF) (FWB: RJIB) (WKN: A1XF0V) (the "Company" or
"Rock Tech") is pleased to announce the results of a
Pre-Feasibility Study ("PFS") completed for its 100%-owned Georgia
Lake spodumene project located in the Thunder Bay Mining District
of Ontario, Canada (the "Georgia
Lake Project"). The PFS strengthens and further substantiates
previous engineering studies and supports an open pit and
underground mine operation and the construction of a 1,000,000
tonne-per-annum spodumene concentrator. The positive results
indicate a pre-tax internal return rate of 47.8% and a pre-tax net
present value of US-Dollars 223
million for the Georgia Lake Project. They also support Rock
Tech's decision to further deepen and shape the vertically
integrated strategy connecting its mining, concentration, and
conversion operations. The Company is also pleased to announce an
initial Mineral Reserve and updated Mineral Resource estimates for
the Georgia Lake Project.
PRE-FEASIBILITY STUDY
HIGHLIGHTS
- Estimated pre-tax net present value at an 8% discount rate
("NPV") of USD 223 million at an
average life of mine ("LOM") price of USD
1,500/t, 6% spodumene concentrate ("SC6").
- Estimated pre-tax internal rate of return ("IRR") of 47.8%
at an average LOM price of USD 1,500/t, SC6.
- LOM of 9 years, with low-cost open pit mining for the first
4 years and underground mining for the last 5 years.
- Pre-tax payback of 2.9 years.
- Update to Mineral Resource estimate: Total Indicated Mineral
Resources of 10.6mt at grading 0.88% Li2O and total
Inferred Mineral Resources of 4.2mt at grading of 1.00%
Li2O.
- Declaration of Mineral Reserves: Total Probable Mineral
Reserves of 7.33mt at grading of 0.82% Li2O.
- Pre-production costs estimated at USD
192.2 million and sustaining capital costs of USD 98.5 million (including closure
costs).
- Average annual spodumene concentrate production of
approximately 100,000 t of SC6.
- Total LOM average cash costs of USD
719/t concentrate.
The objective of the PFS was to assess the technical and
economic viability of achieving spodumene concentrate production at
the Georgia Lake Project. The PFS evaluated the construction and
operation of a 1,000,000 tonne-per-annum concentrator (the "Georgia
Lake Concentrator") with open pit and underground mining operations
over a 9-year LOM. The Company is pleased that the positive results
of the PFS support the viability of lithium mining activities and
the concentration of spodumene at the Georgia Lake Project.
The economics associated with the construction of a lithium
hydroxide converter and refinery facility (a "Converter") at the
Georgia Lake Project were not considered as part of the PFS.
Accordingly, the results of the PFS may not be directly comparable
to the results of the 2021 PEA (as defined below), which
contemplated the construction and operation of an integrated 15,000
tonne-per-annum Converter for refining a portion of the production
from the Georgia Lake Project.
The Company continues to evaluate refining opportunities for
future production from the Georgia Lake Project in light of
industry and global socio-economic factors and competencies
developed in connection with the ongoing development of the
Company's proposed Converter in Guben, Germany. Such refining opportunities include
utilizing a vertically integrated strategy for the Georgia Lake
Project, whereby future production from the Georgia Lake Project is
refined at the proposed Converter in Guben or a Company
owned-and-operated Converter in North
America or selling such production to existing third-party
refiners.
The metallurgical testwork completed on sample feedstock from
the Georgia Lake Project positively demonstrates the suitability of
the spodumene concentrate for conversion into battery-grade lithium
hydroxide. Rock Tech's CEO, Dirk
Harbecke, commented on the encouraging developments, "These
results support the integration of Georgia Lake with the downstream
conversion industry, where we have been building strong
partnerships and extensive know-how. The encouraging results also
demonstrate that we are well positioned to explore potential fields
of collaboration in the North American and European EV supply
chain".
The PFS and Mineral Reserve and Resource estimates have further
increased the confidence level of bringing the Georgia Lake Project
towards feasibility level, which will provide the basis for a
construction decision. The Company intends to undertake a
feasibility study for the Georgia Lake Project as part of its
efforts to optimize and advance the Georgia Lake Project.
These efforts are expected to include upgrading the Mineral
Resource and Mineral Reserve estimates through exploration
drilling, optimizing mining operations with the opportunity to
become owner-operated, and enhancing infrastructure detail through
support from the Company's indigenous partners to reduce capital
costs and increase operational efficiency.
SUMMARY OF PFS RESULTS
The PFS and Mineral Reserve and Mineral Resource estimates have
been prepared in accordance with the National Instrument 43-101 –
Standards of Disclosure for Mineral Projects ("NI 43-101") by AMC
Consulting (Canada) Ltd. ("AMC")
with specialist contributions from Wave International Pty ("Wave"),
Knight Piesold Consulting ("KP"), Pinchin Ltd. ("Pinchin"),
Environmental Resources Management ("ERM"), and Environmental
Applications Group ("EAG").
The PFS evaluates the planned production of spodumene
concentrate from an average of 2,800 tonne-per-day ("tpd") open pit
and underground operation, with a process plant that will include
crushing, grinding, density media separation (DMS) and flotation,
estimated to produce a combined 6% Li2O grade spodumene
concentrate.
The PFS incorporates the recent results from the Company's
drilling program at the Georgia Lake Project, as well as recent
metallurgical test work to determine key process criteria and
operational recovery. Metallurgical testing programs were
undertaken at commercial laboratories SGS Canada Inc. ("SGS") and
Nagrom Mineral Processors ("Nagrom") simulating and improving the
process flowsheet to maximize ore grade and recovery.
KEY METRICS
KEY METRICS AND
ASSUMPTIONS (1) (2)
|
Pre-Tax
NPV(3)
|
USD 223m
|
After-Tax
NPV(3)
|
USD 146m
|
Pre-Tax IRR
|
47.8 %
|
After-Tax
IRR
|
35.6 %
|
Pre-Tax Payback
Period
|
2.9 years
|
After-Tax Payback
Period
|
3.3 years
|
Pre-Production Capital
Costs
|
USD 192m
|
Life-of-Project Capital
Costs(4)
|
USD 291m
|
Life-of-Project
Revenue
|
USD 1,175m
|
Life-of-Project Total
Operating Costs(5)
|
USD 536m
|
Life-of-Project Total
Cash Costs(5)
|
USD 576m
|
AISC USD/t
concentrate(5)
|
USD 1,082
|
Average LOM 6%
Spodumene Concentrate price USD/t(6)
|
USD 1,500
|
Notes:
|
1. See
"Key Assumptions and Sensitivity Analysis" section below for
further details.
|
2. Key
metrics are calculated on nameplate annual production of 1,000,000
tpa of spodumene pegmatite feed over 9-year life of
project.
|
3. Discount rate of 8%.
|
4. Includes pre-production, sustaining
capital, and closure costs.
|
5. Refer to
""Non-IFRS and other Financial Measures".
|
6. Source: derived
using Benchmark Mineral Intelligence and Wood
Mackenzie.
|
The PFS estimated a pre-tax NPV of the Georgia Lake Project of
USD 223 million compared to the
USD 289 million pre-tax NPV estimated
in the Company's technical report titled, "Preliminary Economic
Assessment for an Integrated Lithium Hydroxide Operation from the
Georgia Lake Lithium Project, Northwest
Ontario, Canada" (the "2021 PEA"), while the PFS estimates
an after tax NPV of USD 146 million
compared to the USD 230 million
estimated in the 2021 PEA. Additionally, the PFS estimates an IRR
of 48% and 36%, pre-tax and after-tax respectively, compared to 22%
and 20% estimated in the 2021 PEA.
Differences in key metrics between the 2022 PFS and the 2021 PEA
are primarily attributable to the exclusion of an integrated
Converter in the PFS, an increased level of confidence in the
engineering details, a change in the mineral resource categories
and updated cost estimates based on 2022 market conditions.
Additional differences include a more complex recovery flowsheet,
which includes the process of DMS; the addition of an on-site camp
and subsequent accommodation service; and a closure plan that is
more closely aligned with similar operations.
CAPITAL COST ESTIMATES
The mine site project covered in the PFS is based on the planned
construction of a green field facility having an estimated nominal
annual feed of 1 Mtpa for open pit and underground mining. The
capital and operating cost estimates were completed by the
following parties:
COMPANY NAME
|
AREA OF
RESPONSIBILITY
|
AMC Consultants
(Canada) Ltd.
|
Mining
|
Wave International
Pty.
|
Processing and
Infrastructure
|
Knight Piesold
Ltd.
|
Tailings Storage
Facility
|
Pinchin Ltd.
|
Water
Management
|
The capital cost estimate for this project is considered to an
expected accuracy level of +25% / -25%, carrying a contingency of
20%.
The capital costs for the LOM are estimated to be a total of
USD 290.7 million, which consist of
pre-production capital costs of USD 192.2
million and sustaining capital costs of USD 98.5 million, including closure costs of
USD 10.6 million. The LOM capital
costs summary and its distribution by area is shown in the table
below.
LOM CAPITAL COST
SUMMARY
|
Capital
costs
|
Pre-Production (USD
m)
|
Sustaining (USD
m)
|
Total (USD
m)
|
Mine
|
5.8
|
70.2
|
76.0
|
Process and surface
infrastructure
|
168.8
|
13.4
|
182.2
|
TSF
|
12.9
|
4.3
|
17.2
|
Water Management
Plan
(WMP)
|
4.7
|
-
|
4.7
|
Closure
costs
|
-
|
10.6
|
10.6
|
Total capital
costs
|
192.2
|
98.5
|
290.7
|
OPERATING COST ESTIMATES
The average unit operating cost over the LOM are estimated at
USD 73.16/t processed. The unit
operating costs include contractor quoted costs for open pit of
USD 4.45/t open pit mined material
and underground mining of USD 50.78/t
underground ore mined, which equates to an estimated weighted
average LOM mining cost of USD
40.04/t processed. The mineral processing costs are
USD 20.58/t processed and the general
and administration (G&A) costs are USD
12.54/t processed. Operating cost estimates for the project
are summarized below.
LOM AND UNIT OPERATING
COSTS
|
Operating
costs
|
USD m
|
USD/t processed
(1)
|
Mining
|
293.4
|
40.04(2)
|
Processing, WMP, and
TSF
|
150.9
|
20.58
|
Processing
|
148.0
|
20.19
|
TSF
|
1.7
|
0.22
|
WMP
|
1.2
|
0.17
|
G&A
|
91.9
|
12.54
|
Total
|
536.2
|
73.16
|
Note:
|
1. Overall tonnage
processed of 7.3 Mt is used to calculate the unit rate for USD/t
processed.
|
2. Weighted average
unit rate including underground mining cost (USD 50.78/t) and open
pit mining cost (USD 4.45/t)
|
KEY ASSUMPTIONS AND SENSITIVITY
ANALYSIS
The discount rate for financial analysis is 8%. The weighted
average price of spodumene concentrate is USD 1,500(1) per tonne over the life
of mine, reducing from a peak price of USD
2,722 per tonne in 2024. The following exchange rates were
considered: C$1.00 = US$0.77, C$1.00 =
A$1.10; C$1.00 = €0.73.
As part of the PFS, a sensitivity analysis was conducted on the
Project's NPV and IRR for key variables, which include spodumene
concentrate price, capital costs, and operating costs. Using the
base case as a reference, the key variables were changed between
+/-20% at 10% intervals while holding other variables constant. The
Project is most sensitive to spodumene concentrate prices, capital,
and operating costs. Spodumene concentrate price, capital costs and
operating cost sensitivities are presented in the tables below.
SENSITIVITY
RANGES
|
Parameters
|
Unit
|
-20 %
|
-10 %
|
Project
case
|
10 %
|
20 %
|
SC6 Price
|
USD/t conc.
|
1,200
|
1,350
|
1,500
|
1,650
|
1,800
|
Results
|
Pre-tax NPV
8%
|
USD M
|
54
|
139
|
223
|
308
|
392
|
Pre-tax IRR
|
%
|
21 %
|
36 %
|
48 %
|
59 %
|
69 %
|
Post-tax NPV
8%
|
USD M
|
19
|
83
|
146
|
208
|
270
|
Post-tax IRR
|
%
|
13 %
|
26 %
|
36 %
|
44 %
|
52 %
|
SENSITIVITY
RANGES
|
Parameter
|
Units
|
-20 %
|
-10 %
|
Project
case
|
10 %
|
20 %
|
LOM capital
costs
|
USD M
|
233
|
262
|
291
|
320
|
349
|
Results
|
Pre-tax NPV
8%
|
USD M
|
273
|
248
|
223
|
198
|
173
|
Pre-tax IRR
|
%
|
65 %
|
56 %
|
48 %
|
41 %
|
35 %
|
Post-tax NPV
8%
|
USD M
|
196
|
171
|
146
|
121
|
97
|
Post-tax IRR
|
%
|
51 %
|
43 %
|
36 %
|
30 %
|
24 %
|
SENSITIVITY
RANGES
|
Parameter
|
Units
|
-20 %
|
-10 %
|
Project
case
|
10 %
|
20 %
|
LOM operating
costs
|
USD/t milled
|
58.52
|
65.84
|
73.16
|
80.47
|
87.79
|
Results
|
Pre-tax NPV
8%
|
USD M
|
294
|
259
|
223
|
188
|
152
|
Pre-tax IRR
|
%
|
56 %
|
52 %
|
48 %
|
44 %
|
39 %
|
Post-tax NPV
8%
|
USD M
|
198
|
172
|
146
|
120
|
92
|
Post-tax IRR
|
%
|
42 %
|
39 %
|
36 %
|
32 %
|
28 %
|
|
|
|
|
|
|
|
|
|
MINERAL RESOURCE AND MINERAL
RESERVE ESTIMATES
The updated Mineral Resource estimate of the Georgia Lake
Property outlined 10.60 million tonnes (mt) of Indicated Mineral
Resource at a grade of 0.88% Li2O and 4.22 mt of
Inferred Mineral Resource at a grade of 1.0% Li2O, and
are effective as of July 31 2022. The
Mineral Resource estimate, prepared by AMC Consulting, is based on
312 core drillholes during the period of 1955 to 2022, and 858
meters of trenching over the same period.
Changes in the Mineral Resource estimate are attributable to,
among other things:
- 23,490 metres surface drilling.
- 1,164 metres additional sampling of mineralization.
- New interpretation of mineralized domains.
- Updated classification.
- Reduced cut off grades calculated from preliminary economic
assumptions.
2022 MINERAL
RESOURCE
|
Classification
|
Mining
|
Cut-off grade
Li2O (%)
|
Zone
|
Tonnes
|
Li2O
(%)
|
Indicated
|
Open pit
|
0.3
|
NSPA OP
Indicated
|
4,242,618
|
0.88
|
Indicated
|
Underground
|
0.6
|
NSPA UG
Indicated
|
6,358,650
|
0.89
|
Total
Indicated
|
|
|
|
10,601,268
|
0.88
|
Inferred
|
Open pit
|
0.3
|
NSPA OP
Inferred
|
245,933
|
0.78
|
Inferred
|
Underground
|
0.6
|
NSPA UG
Inferred
|
2,073,069
|
0.91
|
Inferred
|
Underground
|
0.6
|
SSPA UG
Inferred
|
1,903,274
|
1.12
|
Total
Inferred
|
|
|
|
4,222,276
|
1.00
|
Notes:
|
a.
|
CIM Definition
Standards (2014) were used for reporting the Mineral
Resources.
|
b.
|
The Qualified Person
is Dinara Nussipakynova, P.Geo. of AMC.
|
c.
|
Cut-off grade for
open pit Mineral Resources is 0.30% Li2O.
|
d.
|
Open pit Mineral
Resources are constrained by the optimization pits shell at a
lithium concentrate price of USD 1,100/t with metallurgical
recovery of 80% and concentrate grade of 6%. Both cut off use same
parameters.
|
e.
|
The pit optimization
was based on following cost assumptions:
|
i.
Mill feed mining costs of USD 4.5/t and waste mining cost
of USD 4.5/t.
|
ii.
Processing costs of USD 25/t and General and
Administration costs of USD 15/t.
|
iii.
Slope angle 45-48 degrees.
|
f.
|
Cut-off grade for
underground Mineral Resources is 0.60% Li2O based on a
USD 45/t mining cost and processing and G&A the same as the
open pit.
|
g.
|
Underground Mineral
Resources are not constrained.
|
h.
|
Mineralized Density
used as 2.69 t/m3.
|
i.
|
Waste Density used
as 2.75 t/m3.
|
j.
|
Drilling results up
to 31 July 2022.
|
k
|
The numbers may not
compute exactly due to rounding.
|
The initial Mineral Reserve estimates, prepared by AMC, are
effective as of July 31, 2022 and
conform to CIM Definition Standards (2014). All design and
scheduling have been completed using the block model generated
during the updated Mineral Resource estimate.
The cut-off values supporting the estimation of underground
Mineral Reserves were generated using a spodumene concentrate price
of USD 1,100 per tonne. The cost
assessment indicated that a cut-off grade of 0.3% Li2O
for open pit and 0.6% Li2O for underground was
appropriate.
2022 MINERAL
RESERVE
|
Type of
Reserves
|
Tonnage
(mt)
|
Li2O
(%)
|
Cut off
Li2O (%)
|
Probable open
pit
|
4.05
|
0.80
|
0.3
|
Probable
underground
|
3.28
|
0.84
|
0.6
|
Total Probable
Reserve
|
7.33
|
0.82
|
|
Notes:
|
a. The
Company's Mineral Reserve estimates are effective as of July
31st, 2022 and are reported in accordance with CIM
Definition Standards (2014).
|
b. The
Qualified Persons are David Warren, P.Eng of AMC for the Open Pit
and Gary Methven, P.Eng of AMC for the Underground.
|
c. Cut-off
value applied, Open pit: 0.3% Li2O; Underground: 0.6%
Li2O.
|
d. Spodumene
concentrate price of US$1,100/t concentrate at a grade of 6%
Li2O used to calculate
reserves.
|
e.
Metallurgical recovery of 80% and payability 100%
|
f.
Mining Recovery, Open pit: 95%; Underground:
95%.
|
g. Mining
Dilution, Open pit: 10%; Underground: 10%
|
h. Numbers
may not compute exactly due to rounding.
|
i. Exchange
rate of 1US$ to 1.3C$.
|
j. Numbers
may not compute exactly due to rounding.
|
Readers are cautioned that Mineral Resources are reported
inclusive of Mineral Reserves and that Mineral Resources that are
not Mineral Reserves do not have demonstrated economic
viability. Areas of uncertainty that may materially impact the
Mineral Reserve and/or Mineral Resource estimates or the
development thereof include, among others, prices of spodumene
concentrate, lithium chemicals, changes to resource modelling
methods, geotechnical assumptions and metallurgical recovery
assumptions.
Please see the section titled "Risk Factors" in the Company's
2021 annual information form available on SEDAR at
www.sedar.com for further details regarding such risks.
Additional information, including key assumptions, parameters and
methods used to estimate the Mineral Reserves and Mineral
Resources, will be provided in the new technical report on the
Georgia Lake Project to be published within 45 days of this press
release.
ABOUT THE PLANT DESIGN
The Georgia Lake Concentrator is proposed to be constructed
within the Nama Creek property approximately 160 km northeast of
Thunder Bay, Ontario and 16 km
south of Beardmore and accessed by
the historic Nama Creek Road. It is designed to convert spodumene
pegmatite ore into spodumene concentrate via crushing, DMS, and
flotation. The basic process flowsheet was developed and
subsequently optimised using data derived from a number of
metallurgical test work campaigns completed on drill core samples.
The drill core samples were taken from five spodumene bearing
pegmatite veins from the resource called Main Zone North (MZN),
Conway (CON), Main Zone Southwest
(MZSW), Harricana (HAR), and Line60 (L60).
It is expected that the Georgia Lake Concentrator will consist
of a three-stage crushing circuit to reduce feed to below 9.5mm.
The first DMS stage is used to reduce the feed mass with a high
rejection of low-grade coarse material improving the overall plant
feed grade. The second DMS stage is used to produce a coarse and
fine DMS concentrate product via re-crushing. The floats and fines
material are milled and prepared for the flotation circuits.
A standard rougher / cleaner spodumene flotation circuit follows
the mica flotation stage, and will produce a spodumene concentrate,
ready for dewatering.
The process flowsheet for the Georgia Lake Concentrator has
been designed to incorporate process unit operations typical to
spodumene concentrators using DMS and flotation, taking advantage
of specific properties of the Georgia lake deposit. Proven technology within
the lithium industry was used to minimise technical risk and time
to market.
It is expected that the Georgia Lake Concentrator will be
designed for a feed capacity of 150 t/h or 1,000,000 tpa. Key
aspects of the Georgia Lake Concentrator are expected to
include:
- Li2O content in feed of approximately 0.82 %
Li2O
- Li2O content in concentrate approximately 6.0%
Li2O
- Li2O overall recovery 80%
METALLURGICAL REMARKS
The test parameters for the PFS were based upon and designed to
provide continuity and compatibility with earlier results. Nagrom
was engaged to carry out a three-phase metallurgical test program.
Approximately 66 kilograms (kg) of ore composite from MZN deposit
was selected for head assay sampling.
Both Heavy Liquid Separation (HLS) and Flotation were tested to
produce a spodumene concentrate of target grade 6.0%
Li₂O. Variability testwork was also undertaken on samples from
the satellite ore bodies (MZSW, HAR, LIN60, and CON). For the PFS,
a constant metal recovery of 80% is assumed with a concentrate
grade of 6%.
PERMITTING & OUTLOOK
Rock Tech will continue to advance the Georgia Lake Project
towards feasibility level. Based on the positive results of the
PFS, the Company intends to undertake a definitive feasibility
study in respect of the Georgia Lake Project, with a production
decision expected to be made in 2023. Permitting activities for the
Georgia Lake Project are progressing and expected to be concluded
in a timely manner supporting the next phase of development of the
Georgia Lake Project.
On behalf of the Board of Directors,
Dirk Harbecke
Chairman & CEO
QUALIFIED PERSONS AND NI 43-101
TECHNICAL REPORT
The PFS for the Georgia Lake Project summarized in this press
release will be incorporated in a NI 43-101 technical report that
will be filed on the Company's SEDAR profile at www.sedar.com
within 45 days of this press release. The affiliation and areas of
responsibility for each of the independent qualified persons (as
defined in NI 43-101) involved in preparing the PFS, upon which the
technical report will be based, are as follows:
NAME
|
COMPANY
|
AREA OF
RESPONSIBILITY
|
Gary Methven, P. Eng,
Principal Mining Engineer and
Underground Manager
|
AMC Consultants
(Canada) Ltd.
|
Underground Mining,
Cost
Estimation and Economics
|
Dinara Nussipakynova,
P.Geo, Principle Geologist
|
AMC Consultants
(Canada) Ltd.
|
Geology Mineral
Resource
Estimation
|
David Warren, P.Eng,
Principal Mining Engineer
|
AMC Consultants
(Canada) Ltd.
|
Open Pit
Mining
|
Mo Molavi, P.Eng,
Principal Mining Engineer
|
AMC Consultants
(Canada) Ltd.
|
Underground
Infrastructure
|
Sean Supanz, P. Eng
(PEO Temporary Licensed),
Principal Mechanical Engineer
|
Wave International
Pty.
|
Processing and
Mechanical
|
Alex Sneyd, P.Eng (PEO
Temporary Licensed),
Electrical Engineering Manager
|
Wave International
Pty.
|
Process and Site
Electrical
|
Craig Murrell, P.Eng
(PEO Temporary Licensed),
Senior Civil Engineer
|
Wave International
Pty.
|
Process and Site Civil
Works
|
James Schloffer, P.Eng
(PEO Temporary Licensed),
Senior Process Engineer
|
Wave International
Pty.
|
Processing
|
Alex McIntyre, P. Eng,
Senior Engineer
|
Knight Piesold
Ltd.
|
Tailings Storage
Facility
|
Byron O'Connor, P. Eng,
Vice President - Mining
|
Pinchin Ltd.
|
Hydrogeology and
Water
Management
|
Rolf Schmitt, P. Geo,
Technical Director
|
Environmental
Resources
Management
|
Environmental and
Permitting
|
Each of the foregoing qualified persons has reviewed and
approved the contents of this press release. In addition, the
scientific and technical disclosure included in this press release,
including the information on the 2021 PEA, has also been reviewed
and approved by Robert MacDonald,
P.Eng, General Manager of the Georgia Lake Project, a qualified
person under NI 43-101.
The qualified persons responsible for the preparation of the PFS
and the technical report in respect thereof have verified the data
disclosed in this press release, including sampling, analytical and
test data underlying the information contained herein. Geological,
mine engineering and metallurgical reviews included, among other
things, reviewing drill data and core logs, review of geotechnical
and hydrological studies, environmental and community factors, the
development of the life of mine plan, capital and operating costs,
transportation, taxation and royalties, and review of existing
metallurgical test work. In the opinion of the qualified persons,
the data, assumptions, and parameters used to estimate Mineral
Resources and Mineral Reserves, the metallurgical model, the
economic analysis, and the PFS are sufficiently reliable for those
purposes.
ABOUT ROCK TECH
Rock Tech is a cleantech company on a mission to produce lithium
hydroxide for EV batteries. The Company plans to build lithium
converters at the door-step of its customers, to guarantee
supply-chain transparency and just-in-time delivery. To close the
most pressing gap in the clean mobility story, Rock Tech has
gathered one of the strongest teams in the industry. The Company
has adopted strict ESG standards and is developing a proprietary
refining process aimed at further increasing efficiency and
sustainability. Rock Tech plans to source raw material from its own
mineral project in Canada as well
as procuring it from other responsibly producing mines. In the
years to come, the Company expects to also source raw material from
discarded batteries. Rock Tech's goal: to create a closed-loop
lithium production system.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
CAUTIONARY NOTE CONCERNING
FORWARD-LOOKING INFORMATION
The following cautionary statements are in addition to all other
cautionary statements and disclaimers contained elsewhere in, or
referenced by, this press release.
Certain information set forth in this press release constitutes
"forward-looking information" (collectively, "forward-looking
information") within the meaning of applicable Canadian securities
laws, which information is based on Rock Tech's current
expectations, estimates, and assumptions in light of its experience
and perception of historical trends. All statements other than
statements of historical facts may constitute forward-looking
information. Often, forward-looking information can be identified
by the use of words or phrases such as "estimate", "project",
"anticipate", "expect", "intend", "believe", "hope", "may" and
similar expressions, as well as "will", "shall" and all other
indications of future tense. All forward-looking information set
forth in this press release is expressly qualified in its entirety
by the cautionary statements referred to in this section.
In particular, this press release contains forward-looking
information pertaining to: the estimated amount and grade of
Mineral Resources and Mineral Reserves at the Georgia Lake Project;
expectations regarding the PFS, including statements regarding the
results of the PFS and interpretations thereof; expectations
concerning the Georgia Lake Project, including the development and
design and features thereof, related actions and the expected
timing and outcomes thereof; the expected economic performance of
the Georgia Lake Project, including capital costs, operating costs,
NPV, IRR, life of mine estimates and future production therefrom;
statements regarding the Company's strategy for the development of
the Georgia Lake Project and refining opportunities available for
production therefrom; statements regarding the Company's future
plans, estimates, and schedules relating to the Georgia Lake
Project, including future actions taken in support of the
development of the project and the timing thereof; Rock Tech's
expectations regarding the continued development of the Georgia
Lake Project, including the timing and completion of permitting
activities and a definitive feasibility study for the Georgia Lake
Project, as well as the related activities, findings and uses
thereof; the anticipated timing and outcomes of a final investment
decision, construction activities and commissioning of the Georgia
Lake Project; Rock Tech's opinions, beliefs and expectations
regarding the Company's business strategy, development and
exploration opportunities and projects; and plans and objectives of
management for the Company's operations and properties.
The forward-looking information contained in this press release
also includes financial outlooks and other forward-looking metrics
relating the Company and the Georgia Lake Project, including
references to financial and business prospects, future results of
operations, performance and cash follows (including estimated NPV
and IRR). Such information, which may be considered future oriented
financial information or financial outlooks within the meaning of
applicable Canadian securities laws (collectively, "FOFI"), has
been approved by management of the Company as of the date hereof.
Such FOFI is based on assumptions which management believes is
reasonable as of the date hereof, having regard to the industry,
business, financial conditions, plans and prospects of Rock Tech,
including the PFS. These projections are provided to describe the
prospective performance of the Georgia Lake Project and readers are
cautioned that such information may not be appropriate for other
purposes. Further, such information is highly subjective and should
not be relied on as necessarily indicative of future results and
actual results may differ significantly from such projections. FOFI
constitutes forward-looking statements and is subject to the same
assumptions, uncertainties, risk factors and qualifications as set
forth below.
Forward-looking information is based on certain assumptions,
estimates, expectations and opinions of the Company and in certain
cases, third party experts, that are believed by management of Rock
Tech to be reasonable at the time they were made. This
forward-looking information was derived utilizing numerous
assumptions regarding, among other things: estimates of Mineral
Resources and Mineral Reserves, including that the geology of the
area of Mineral Resources and Mineral Reserves will conform to that
set out in the PFS; that construction and operation costs,
schedules and completion dates will conform to the PFS; access to
capital markets and other sources of financing for the development
of the Georgia Lake Project and the Company's other projects and
developments; the supply and demand for, deliveries of, and the
level and volatility of prices of, intermediate and final lithium
products; future exchange and interest rates; general business and
economic conditions; the costs and results of development,
exploration and operating activities; Rock Tech's ability to
procure supplies and other equipment necessary for its business;
and the accuracy and reliability of technical data, forecasts,
estimates and studies, including the PFS. The foregoing list is not
exhaustive of all assumptions which may have been used in
developing the forward-looking information. While Rock Tech
considers these assumptions to be reasonable based on information
currently available, they may prove to be incorrect.
Forward-looking information should not be read as a guarantee of
future performance or results. In addition, forward-looking
information involves known and unknown risks and uncertainties and
other factors, many of which are beyond Rock Tech's control, that
may cause actual events, results, performance and/or achievements
to be materially different from that which is expressed or implied
by such forward-looking information. Risks and uncertainties that
may cause actual events, results, performance and/or achievements
to vary materially include: variations in the mineral content
within the materials identified as Mineral Resources and Mineral
Reserves from that predicted; the cost and availability of, and
inflationary pressure on, labour, equipment and materials for the
development of the Georgia Lake Project; the Company's ability to
access funding required to invest in available opportunities and
projects (including the Georgia Lake Project) and on satisfactory
terms; the current and potential adverse impacts of the COVID-19
pandemic and ongoing geopolitical hostilities; the risk that Rock
Tech will not be able to meet its financial obligations as they
fall due; adverse changes in commodity prices, exchange rates and
market prices of Rock Tech's securities; Rock Tech's ability to
attract and retain skilled staff and to secure refining
arrangements for future production, either internally or
externally; unanticipated events and other difficulties related to
construction, development and operation of the Georgia Lake
Project, the cost of compliance with current and future
environmental and other laws and regulations; title defects; Rock
Tech's history of losses; adverse impacts of climate change and
other risks and uncertainties described from time to time in Rock
Tech's public disclosure documents available on the Company's SEDAR
profile at www.sedar.com, including those discussed under the
heading "Risk Factors" in Rock Tech's most recently filed
Management Discussion and Analysis and Annual Information Form,
respectively. Such risks and uncertainties do not represent an
exhaustive list of all risk factors that could cause actual events,
results, performance and/or achievements to vary materially from
the forward-looking information. We cannot assure you that actual
events, results, performance and/or achievements will be consistent
with the forward-looking information and management's assumptions
may prove to be incorrect.
Forward-looking information reflects Rock Tech management's
views as at the date the information is created. Except as may be
required by law, Rock Tech undertakes no obligation and expressly
disclaims any responsibility, obligation or undertaking to update
or to revise any forward-looking information, whether as a result
of new information, future events or otherwise, to reflect any
change in Rock Tech's expectations or any change in events,
conditions or circumstances on which any such information is based.
Given these uncertainties, readers are cautioned not to rely on the
forward-looking information set forth in this press release.
NON-IFRS AND OTHER FINANCIAL
MEASURES
In this press release, Rock Tech has disclosed certain non-IFRS
financial measures and ratios that are not defined in accordance
with IFRS and which are not disclosed in the Company's financial
statements, including total operating costs, total operating costs
per tonne, total cash costs, total cash costs per tonne, all-in
sustaining costs, and all-in sustaining costs per tonne. Non-IFRS
financial measures either exclude an amount that is included in, or
include an amount that is excluded from, the composition of the
most directly comparable financial measure specified, defined and
determined in accordance with IFRS. Such financial measures do not
have any standardized meaning under IFRS and may not be comparable
to similar financial measures disclosed by other issuers.
Accordingly, non-IFRS financial measures should not be considered
in isolation or as a substitute for, or superior to, measures and
ratios of Rock Tech's financial performance or prospects specified,
defined or determined in accordance with IFRS. Management expects
to use such measures to set objectives and as a key performance
indicator and believes that such information may be useful to
investors and analysts in understanding and assessing the estimated
financial performance of the Georgia Lake Project.
Certain Non-IFRS financial measures used in this news release
and common to the mining industry are defined below.
Total operating costs and operating costs per tonne: Total
operating costs are reflective of the cost of production. Total
operating costs reported in the PFS include mining costs,
processing costs, tailings storage facility costs, water &
waste management costs, and on-site general & administrative
costs. Operating costs per tonne is calculated as total LOM
operating costs divided by total LOM mill feed tonnes.
Total cash costs and cash costs per tonne: Total cash costs are
reflective of the cost of production. Total cash costs reported in
the PFS include mining costs, processing costs, tailings storage
facility costs, water & waste management costs, on-site general
& administrative costs, transportation costs and royalties.
Cash costs per tonne is calculated as total LOM cash costs divided
by total LOM mill feed tonnes.
All-in Sustaining Costs ("AISC") and AISC per tonne: AISC is
reflective of all of the expenditures that are required to produce
spodumene concentrate from operations. AISC reported in the PFS
includes total cash costs, pre-production capital, sustaining
capital (including closure costs). AISC per tonne is calculated as
AISC divided by total LOM mill feed tonnes.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/rock-tech-lithium-completes-pre-feasibility-study-for-its-georgia-lake-project-301679567.html
SOURCE Rock Tech Lithium Inc.