LSC Lithium Corporation (“
LSC” or together with
its subsidiaries, the “
Company”) (TSXV:LSC) is
pleased to announce that it has filed the technical report for the
Preliminary Economic Assessment (“
PEA”) for its
Pozuelos-Pastos Grandes (“
PPG”) Project titled
“Preliminary Economic Assessment – Pozuelos-Pastos Grandes Project
NI 43-101 Technical Report, Salta, Argentina” which can be found on
Sedar (www.sedar.com) and the Company’s website
(www.lsclithium.com).
PEA HIGHLIGHTS
US$2,994/t Li2CO3 |
US$338m |
US$1,036m |
34 |
% |
Avg Operating Costs (incl. 5% contingency) |
Initial Capital (incl. $59m contingency) |
NPV8% (Pre-tax) |
IRR (Pre-tax) |
US$125m |
20,000 tpa |
US$762m |
30 |
% |
After Tax Annual Free Cash Flow |
Production of Battery Grade Li2CO3 |
NPV8% (Post tax) |
IRR (Post tax) |
- US$762 million after-tax
NPV at 8% discount rate and IRR of 30%
- CAPEX estimate of US$338m,
with 34% of estimate at PFS level accuracy
- OPEX of US$2,994/t of
lithium carbonate over life of mine
- Mine life of at least 20
years with initial production in 2021 and steady state in
2024
- Designed for production of
20,000tpa of battery grade lithium carbonate
- Combined PPG Project
Resource of 2,617,000 tonnes LCE in Measured and Indicated category
and 938,500 tonnes LCE in the Inferred category1
- Process development
supported by benchscale test work. Pozuelos brine chemistry, in
particular is amenable to excellent process
performance
LSC’s President and CEO, Ian Stalker, noted,
“The filing of this technical report is another important
milestone. These results support our view that PPG is one of the
most advanced and economically viable lithium projects in
Argentina. Operating costs are in the lowest quartile globally, the
capital requirements are manageable, and we are excited by the
large resource, which leaves room for future upsizing.”
The PEA is based upon brine grades across LSC’s
Measured, Indicated and Inferred Mineral Resources only. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability. There is no certainty that the PPG Project
envisioned by the PEA will be realized. The PEA is preliminary in
nature and includes inferred mineral resources that are considered
too speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves.
Unique Project Advantages
The PPG Project enjoys certain unique
advantages, which support a rapid development schedule, and low
capital and operating costs:
- LSC controls over 90% of the area
of the Pozuelos salar and its surroundings. This advantageous
position makes siting of infrastructure, extraction of fresh water
and preparation of brine-extraction models extremely simple. In
this way, sustainable pumping of brine can be ensured.
- Geotechnical conditions in the
mature portion of the Pozuelos salar are such that construction of
evaporation ponds can occur on the salar surface at low cost.
- For the two reasons above, it was
decided to locate all infrastructure at Pozuelos, with only
extraction wells and a pipeline located at Pastos Grandes.
- Pozuelos’ proximity to the existing
Fenix gas pipeline ensures that only a 26km connection needs to be
constructed. LSC has been allocated gas capacity on this pipeline
by the gas supply company.
- At least three separate sources of
fresh water have been identified and road access is readily
available.
- The brine chemistry of the Pozuelos
and Pastos Grandes salars complement each other. Test work has
shown that an efficient evaporation path can be pursued to produce
a high grade and high purity concentrate for feeding into the
lithium plant ensuring high recovery rates.
- The Argentine fiscal regime is very
supportive of mining projects. A reduced corporate tax rate of 25%
will be effective for the industry from 2020. A royalty of 3% is
applied to all exported products. Salta Province in particular, is
actively encouraging mining investment and therefore requires no
additional royalties or government participation in the
project.
- Pozuelos hosts no communities in
the immediate vicinity or environmentally sensitive flora or fauna.
This increases the likelihood of a fast and efficient project
approval and implementation.
- LSC has developed a processing
method that is based on conventional and proven unit operations for
lithium brines.
Qualified Person
The information contained in this news release
relating to the PEA has been reviewed and is approved by Lawrence
D. Henchel, P.Geo., of Stantec Consulting International LLC. Mr.
Henchel is a qualified person as the term is defined in NI 43-101
and is independent of LSC. GHD of Santiago, Chile, has also
reviewed and approved the presentation of the PEA information in
this news release.
ABOUT GHD:
GHD is one of the world’s leading professional
services companies operating in the global markets of energy and
resources, water, environment, property and buildings, and
transportation. Established over ninety years ago and privately
owned by its employees, GHD delivers engineering, architecture,
environmental and construction services to public and private
sector clients across five continents and the Pacific region.
Committed to creating lasting community benefit, GHD connects the
knowledge, skill and experience of nearly 10,000 diverse people
with innovative practices, technical capabilities and robust
systems. www.ghd.com
ABOUT LSC LITHIUM
CORPORATION:
LSC Lithium has amassed a large portfolio of
prospective lithium rich salars and is focused on developing its
tenements located in five salars: Pozuelos, Pastos Grandes, Rio
Grande, Salinas Grandes, and Jama. All LSC tenements are located in
the “Lithium Triangle,” an area at the intersection of Argentina,
Bolivia, and Chile where the world’s most abundant lithium brine
deposits are found. LSC Lithium has a land package portfolio
totaling approximately 300,000 hectares, which represents extensive
lithium prospective salar holdings in Argentina.
For further information please
contact:
LSC Lithium Corporation Ian StalkerPresident
& Chief Executive Officer40 University Avenue, Suite 605,
TorontoON Canada M5J 1T1+416 306 8382Email:
info@lsclithium.comWeb: lsclithium.com
Forward-Looking
StatementsCertain statements contained in this news
release constitute forward-looking information. These statements
relate to future events or future performance, including statements
as results and use of data from the pump test work on Pozuelos,
ability, timing and successful completion of the drill program and
seismic survey at the PPG Project, timing and likelihood of
relocating accommodation to Pozuelos, timing of completing
engineering work on the PPG Project, LSC’s overall contained
lithium inventory, and ability to produce more results on the
Company’s properties. The use of any of the words “could”,
“anticipate”, “intend”, “expect”, “believe”, “will”, “projected”,
“estimated” and similar expressions and statements relating to
matters that are not historical facts are intended to identify
forward-looking information and are based on LSC's current belief
or assumptions as to the outcome and timing of such future events.
Whether actual results and developments will conform with LSC's
expectations is subject to a number of risks and uncertainties
including factors underlying management's assumptions, such as
risks related to: title, permitting and regulatory risks;
exploration and the establishment of any resources or reserves on
the LSC properties; volatility in lithium prices and the market for
lithium; exchange rate fluctuations; volatility in LSC’s share
price; the requirement for significant additional funds for
development that may not be available; changes in national and
local government legislation, including permitting and licensing
regimes and taxation policies and the enforcement thereof;
regulatory, political or economic developments in Argentina or
elsewhere; litigation; title, permit or license disputes related to
interests on any of the properties in which the Company holds an
interest; excessive cost escalation as well as development,
permitting, infrastructure, operating or technical difficulties on
any of the Company's properties; risks and hazards associated with
the business of development and mining on any of the Company's
properties. Actual future results may differ materially. The
forward-looking information contained in this release is made as of
the date hereof and LSC is not obligated to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
applicable securities laws. Because of the risks, uncertainties and
assumptions contained herein, investors should not place undue
reliance on forward-looking information. The foregoing statements
expressly qualify any forward-looking information contained herein.
For more information, see the Company's filing statement on SEDAR
at www.sedar.com.
Neither the TSX Venture Exchange Inc. 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 release.The TSX Venture Exchange
Inc. has neither approved nor disapproved the contents of this
press release.
1 See Technical Report titled “Mineral Resource Estimate and
Technical Report on the Salar de Pastos Grandes Project, Salta
Province, Argentina” with an effective date of October 28, 2018
filed on the Company’s SEDAR profile. Also Technical Report titled
“Mineral Resource Estimate and Technical Report on the Salar de
Pozuelos Project, Salta Province, Argentina” with an effective date
of November 22, 2018
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