(Kitco News) – Noram Lithium (TSX – Venture: NRM) today announced positive results of a Preliminary Economic Assessment (“PEA”) for the high-grade lithium deposit at its wholly-owned Zeus lithium project located in Nevada, USA.
The company said that the project, which is located less than 1 mile from Albermarle’s Silver Peak mine – the only lithium production facility in the United States – generates robust economics, with base case after-tax Net Present Value of $1.299 billion (8% discount rate), base case after-tax IRR of 31%; and estimated initial CAPEX of $528M, with after-tax payback period of 3.23 years.
The mine production rate during full operation is set at 17,000 tpd. The production schedule uses ore from the first 11 phases, which results in 40-year mine life.
Importantly, Noram pointed out that resources contained within the entire ultimate pit limits provide enough ore for over 190 years of production at 17,000 tpd.
The company added that the leaching and filtration flowsheet includes dry stack tailings, thus, eliminating the environmental risk and long-term management issues associated with tailings ponds.
Noram noted that the base case market price of $9500/tonne LCE is well below long term forecasted rate of $14,000/tonne and added that the after-tax NPV reaches $2.665 billion at $14,250/tonne LCE (8% discount rate).
“We are thrilled with the results of this PEA,” stated CEO Sandy MacDougall. “This study represents the most significant milestone to date for Noram and establishes us among limited peers as the newest low cost, high-grade, near-term lithium producer in North America.”
“This initial economic assessment is the most significant step to date towards our goal of lithium production and provides the market with a benchmark to evaluate our project’s viability and value compared with other lithium developers. We are excited as we enter 2022 pushing aggressively towards the completion of a Pre-Feasibility Study,” he added.
The Zeus project has a recently updated resource estimate of 363 million tonnes at 923 ppm lithium measured + indicated resources, and 827 million tonnes lithium at 884 ppm lithium inferred resources (400 ppm Li cut-off).