SECOND QUARTER ACHIEVEMENTS
- During a transformative second quarter, Sigma Lithium
significantly increased the scale of the Project:
-
- Doubled its planned near-term production to 531,000 tonnes
per year of Battery Grade Sustainable Lithium
- Increased by ~50% the Project's NI 43-101
total mineral resource estimate to 86 Mt with increased average
resource grade of 1.43% of high purity spodumene lithium
oxide
- Received an extension of its environmental license to allow
for increased production levels, with simultaneous mining from the
north and south pit of the Project's Phase 1 deposit licensing
additional areas for dry stacked tailings
- Sigma Lithium continued to achieve construction milestones,
advancing towards production:
-
- General progress of project construction is ~32% compared to
a baseline of ~40%
- The critical path of project execution and projected project
commissioning remain unchanged, with commissioning expected to
begin in December
- Critical areas of detailed engineering including project
management, platework, process design and mechanical are 94%
complete or greater while other key areas of detailed engineering
including structural, electrical and concrete, are 76 - 80%
complete
- Commenced preparations for mining of the Phase 1 deposit
opening the mining pit ("pre stripping") to build a
mine
- Sigma Lithium reinforced its dedication to supporting local
communities:
-
- Established a landmark microcredit program initially
targeting 500 female entrepreneurs to support the disadvantaged
women in the region of Vale do Jequitinhonha, planned to increase
to 1,500 women in 2022
- Sigma Lithium appointed Brian
Talbot to the leadership team as Chief Operating Officer,
completing the key appointments in preparation for operational
readiness for production and for the final stage of construction
prior to commissioning:
-
- Mr. Talbot is one of the most experienced professionals
globally in the lithium industry
- He is a proven and experienced operator, having led the
technical and operational teams that implemented Allkem's Mt.
Cattlin Australian production commissioning and growth programs in
2017
- Mr. Talbot also played a key role in overseeing operational
improvements following initial commissioning and ramp-up,
establishing the consistent production profile for the Mt. Cattlin
operation. Therefore, paved the way for Galaxy's longer-term growth
initiatives culminating with the successful merger with Orocobre in
2021 at $5.3 billion, to form lithium
leader Allkem.
VANCOUVER, BC, Aug. 19,
2022 /CNW/ -- SIGMA Lithium
Corporation ("Sigma Lithium" or the
"Company") (NASDAQ: SGML, TSXV:
SGML), dedicated to powering the next generation of electric
vehicles with environmentally sustainable and high-purity lithium,
is pleased to provide a corporate update from a transformative
second quarter of 2022.
Sigma Lithium ended the quarter with C$123.3 million in cash and cash equivalents as
of June 30, 2022, providing
sufficient liquidity to advance the Grota do Cirilo Project (the
"Project") into production. Phase 1 construction at the
Project remains on track with commissioning expected to begin
December 2022.
COMMENTS FROM MANAGEMENT
From Ana Cabral-Gardner, Co-CEO
of Sigma Lithium. "We are delighted to have further
strengthened our operational team by adding industry-leading
executives, rounding out a world-class management team at Sigma
Lithium. Having achieved all of our execution
milestones to date, delivering a transformational quarter
demonstrates the ability of this team to drive us in our successful
trajectory to become a global protagonist in lithium minerals for
electric vehicle batteries"
From Calvyn Gardner, Co-CEO
of Sigma Lithium: "We are very enthusiastic to have
recruited Brian, an exceptional, high-caliber individual who
has already made his mark at Allkem (Galaxy Resources) over
the past ~6 years as COO. Brian has significant experience in
operating integrated lithium processing and mining companies. He
has a remarkable track record in driving production growth and
scalability, as Sigma Lithium prepares to deliver in rapid
succession Phase 1, Phase 2 and Phase 3".
Ana adds: "We are delighted that Brian Talbot has accepted the Board's offer to
become Sigma Lithium's next COO, following a comprehensive
international search process that yielded some outstanding
candidates. Calvyn and Brian have been working together
since October 2021, successfully
executing the design and detailed engineering of Sigma's
environmentally sustainable lithium processing plant. As COO, Brian
will now undertake a critical operational role in the Company,
moving permanently to Vale do Jequitinhonha in Brazil to the site of Sigma
Lithium operations and construction, physically sitting
side-by-side with Calvyn in order to further increase and
facilitate seamless interactions and collaboration."
UPCOMING EVENTS
- On September 14, Sigma Lithium
will host an Investor Day event at the NASDAQ headquarters in
New York City, followed by a
Closing Bell Ceremony in celebration of the Company's one year
anniversary of NASDAQ listing and 10-year anniversary since the
Company was founded by Co-CEO Calvyn
Gardner
-
- The Company continues to deliver on its strategic milestones
and is honored by the NASDAQ invitation to mark these two momentous
occasions. The Company has been one of the top performers on the
NASDAQ during 2022
- Sigma Lithium will also be a sponsor and panelist of the Brazil
Climate Summit hosted by Columbia
University in New York on
September 15-16
- The Company is very honored to have been invited to be a
speaker by the Financial Times for the Commodities Mining Summit to
be held in person in London on
October 20. Sigma Lithium co-CEO will
join prominent CEOs in the industry, including Anglo American, BHP, Vale, Antofagasta
PROJECT UPDATE
During the second quarter of 2022, Sigma Lithium made
significant strides in advancing the Grota do Cirilo Project,
including:
- Filing the National Instrument 43-101 ("NI 43-101")
Feasibility Study for Phase 1 and Pre-Feasibility Study for Phase 2
of the Project on May 25, 2022, which
outlined a combined after-tax NPV of US$5.1
billion.
- Announcing the NI 43-101 Phase 3 mineral resource estimate,
which increased the Project's total mineral resource estimate by
~50% to 86 Mt (comprised of 73.6 Mt of measured and indicated
resources grading at 1.43% Li2O and 12.1 Mt of inferred
resources grading at 1.45% Li2O).
- Receiving the extension of an environmental license on
June 27, 2022 to allow for the
simultaneous mining of the north and south pit at Phase 1 of the
Project:
-
- Extensive additional land surface areas for storage of dry
stacking waste piles.
- Areas located in areas of former pastures without vegetation
coverage, reinforcing Sigma Lithium's paramount commitment
to environmental sustainability.
- Commencing pre-stripping of the Phase 1 north pit on
June 20, 2022.
Additionally, the Company continued to advance social
programs to foster the sustainable development of the local
communities where we operate, progressing the following initiatives
during the quarter:
- Establishing a microcredit program targeted for 500 local
female entrepreneurs.
- Delivering 6,000 food baskets as part of its "Zero Hunger
Action" initiative (7,000 food baskets pledged to be donated during
2022).
- Continuing to deliver on its "Homecoming Employment Program"
initiative with ~70% of the >350 person workforce coming from
the Vale do Jequitinhonha region where we operate.
- Further developing the "Education Program for Mining
Technicians" program with 40 slots being offered.
- Continuing to provide support for two childcare centers in the
municipalities where we operate that serve ~560 children, with 217
liters of liquid soap, 543 liters of shampoo, 490 toothbrushes,
29,700 diapers, and 62,600 napkins delivered.
MANAGEMENT UPDATE
Sigma Lithium was delighted to appointed Brian Talbot to the leadership team as Chief
Operating Officer, completing the key appointments in preparation
for operational readiness for production and for final stage of
construction prior to commissioning.
- Mr. Talbot is a proven and experienced operator, who exceled in
metallurgical processing, mine operations and development in his
previous roles. having held leadership roles at successful lithium
pioneer producers for over a decade, including Galaxy Resources
(now Allkem) and Bakita (now Sinomine Resource Group).
- He holds a bachelor's degree in chemical engineering with
Honours from University of Witwatersrand.
As the Company rapidly prepares for operational readiness
and quickly advances towards the initiation of commissioning of the
Phase 1 plant, Brian Talbot joins
the team of executives working with the co-CEOs in the
management committee at Sigma Lithium, as follows:
- Maria Salum, Chief
Sustainability Officer
Remarkable 40-year technical career in prominent public and
private ESG-centric roles in Brazil including Director of Sustainable
Development in Mining at the Ministry of Mines and Energy and
Senior Representative for the Ministry at the National Council for
the Environment. In the private sector, Mrs. Salum was
a leading consultant, advising some of the largest global mining
companies on environmental matters in Brazil.
- Felipe Peres, Chief
Financial Officer
An expert in international accounting and financial
performance management with over 20 years of experience working in
senior corporate positions at globally recognized multinational
companies in the oil, steel and mining sectors including Vale,
Shell and CSN.
- Jamie Flegg, Chief
Development Officer
Experienced mining capital markets executive with a
background in private equity and investment banking. Most recently,
led deal origination, structuring and execution from investment to
exit at Waterton Global, a leading global mining private
equity platform with $1.75B in
AUM.
- Rodrigo Roso, Chief Legal
Officer
A career spanning over 14 years at a prestigious law firm
in Brazil, culminating as co-head
of the Energy & Infrastructure transactional practice. Most
recently, a senior executive of a high-growth venture company, from
inception to ultimately reaching unicorn status, a portfolio
company of General Atlantic.
- Marina Bernardini, Chief
Commercial Officer (Interim)
A manager in the commercial department since 2018, working
alongside Ana Cabral-Gardner
and instrumental in designing Sigma Lithium's innovative
chemical refining commercial tolling structure, which has become
the new paradigm for commercial relationships in the lithium supply
chain. A lawyer with nearly a decade of hands-on legal and
management experience which includes M&A,
contracts, regulatory, corporate & government affairs, natural
resources, agribusiness, and oil & gas.
- Germano Vieira, Senior
Advisor to the Board for Environmental & Sustainability
Affairs
A lawyer with over 10 years of technical legal and
environmental roles including prominent positions such as Chief
Prosecutor of the Minas Gerais Water Management Institute and
Chief of Staff of the State Foundation for the Environment.
Germano has been leading the environmental department since
October 2021, working alongside
Maria Jose Salum. On
that role, he has been instrumental in designing Sigma Lithium's
environmental policies and practices and has been leading the
technical execution of the Company environmental
licensing.
Sigma Lithium has also conducted key hires of directors and
managers in the critical departments of project management,
metallurgy, processing and mining operations to support the COO and
co-CEO. These experienced executives have stellar track record with
professional experience in large companies such as: SNC Lavalin,
Nexa Resources and Ausenco
CONSTRUCTION UPDATE
Sigma Lithium continued to advance construction of the Phase 1
production plant and mine during the second quarter of 2022,
maintaining its target of initiating commissioning by the end of
2022 and achieving the following significant milestones:
- General progress of project construction is ~32% compared to a
baseline of ~40%.
-
- The critical path of project execution and projected project
commissioning remain unchanged, with commissioning expected to
begin in December.
- Critical areas of detailed engineering including project
management, platework, process design and mechanical are 94%
complete or greater, as per figure 1 below.
- Other key areas of detailed engineering including structural,
electrical and concrete, are 76 - 80% complete.
- Commenced activities to prepare for mining of the Phase 1
deposit, opening the pit ("pre stripping"). The lithium ore to be
produced from the mine will be the feedstock of the greentech
lithium processing production plant.
- Initiated electromechanical assembly and plant pre-fabrication
offsite, with parts arriving for assembly on site in August 2022.
In addition, the construction team is currently focused on
completing the following key workstreams:
- Civil construction of foundations for the installation of the
equipment components of the Production Plant (crushing plant area,
dense media separation plant).
- Civil construction of the run of mine ("ROM") pad and
ROM wall.
- Construction of the Company's own high voltage substation on
site.
- Fabrication of platework and steel structure at vendors
sites.
QUALIFIED PERSONS
Mr. Wes Roberts, P.Eng., a member
of the technical committee of the Company, is the "qualified
person" under NI 43-101 who reviewed and approved the other
technical information included in this news release.
ABOUT SIGMA LITHIUM CORPORATION
Sigma Lithium (NASDAQ: SGML, TSXV: SGML) is a Canadian company
dedicated to powering the next generation of electric vehicle
batteries with environmentally sustainable and high-purity
lithium.
Sigma Lithium is currently in construction at its wholly owned
Grota do Cirilo Project in Brazil,
the largest lithium hard rock project in the Americas and one of
the largest and highest purity lithium projects in the world.
The lithium will be processed in a state-of-the-art, green-tech
processing plant that uses 100% renewable energy, 100% recycled
water and 100% dry-stack tailings. Since inception, Sigma Lithium
has devoted itself to strong ESG practices, from its ongoing
support of local communities to its goal of achieving net zero by
2024. For more information about Sigma Lithium, visit
https://www.sigmalithiumresources.com/
Sigma Lithium
Sigma Lithium
@sigmalithium
@SigmaLithium
FORWARD-LOOKING STATEMENTS
This news release includes certain "forward-looking
information" under applicable Canadian and U.S. securities
legislation, including but not limited to statements relating to
the timing of commissioning of the Project, the general business
and operational outlook of the Company, and other forward-looking
information. All statements that address future plans, activities,
events, estimates, expectations or developments that the Company
believes, expects or anticipates will or may occur is
forward-looking information, including statements regarding the
potential development of mineral resources and mineral reserves
which may or may not occur. Forward-looking information contained
herein is based on certain assumptions regarding, among other
things: general economic and political conditions; the stable and
supportive legislative, regulatory and community environment in the
jurisdictions where the Company operates (including that the
Company will obtain all licenses and approvals required);
anticipated trends and effects in respect of the COVID-19 pandemic
and post-pandemic; the military conflict in Ukraine and related sanctions; demand for
lithium, including that such demand is supported by growth in the
electric vehicle market; the Company's market position and future
financial and operating performance; the Company's estimates of
mineral resources and mineral reserves, including whether mineral
resources will ever be developed into mineral reserves; and the
Company's ability to develop and achieve production at its mineral
projects. Although management believes that the assumptions and
expectations reflected in the forward-looking information are
reasonable, there can be no assurance that these assumptions and
expectations will prove to be correct. Forward-looking information
inherently involves and is subject to risks and uncertainties,
including but not limited to that the Company may not develop its
mineral projects into a commercial mining operation; the market
prices for lithium may not remain at current levels; and the market
for electric vehicles and other large format batteries currently
has limited market share and no assurances can be given for the
rate at which this market will develop, if at all, which could
affect the success of the Company and its ability to develop
lithium operations. There can be no assurance that such statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking information. The Company disclaims any intention or
obligation to update or revise any forward-looking information,
whether because of new information, future events or otherwise,
except as required by law. For more information on the risks,
uncertainties and assumptions that could cause our actual results
to differ from current expectations, please refer to the current
annual information form of the Company and other public filings
available under the Company's profile at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
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SOURCE Sigma Lithium