International Lithium’s Preliminary Economic Assessment (PEA) for the Raleigh Lake Lithium Project outlines highly favourable after-tax NPVof CAD$342.9 million and after-tax IRR of 44.3% p.a.
International Lithium Corp. (“ILC” or “the Company”) is pleased to announce the results of the Preliminary Economic Assessment (“PEA”) for its Raleigh Lake lithium project located in the Dryden Mining Division of Northern Ontario, Canada. The objective of the PEA was to demonstrate the potential economic competitiveness of a lithium hydroxide operation based on the expected mineral resource outlined in the ILC’s June 13, 2019 technical report (the “Technical Report”).
The economics of the Raleigh Lake project are highly favourable with estimated project net present value (“NPV”) after tax (discount rate of 8%) of CAD$342.9 million and estimated internal rate of return (“IRR”) after tax of 44.3% per annum.
The PEA is based on the lithium brine resources of the Raleigh Lake project as presented in the Technical Report, along with the results of the Company’s in-tertiary feasibility study completed in 2019. The Company plans to update the mineral resource to NI 43-101 industry standards for mineral resources and mineral reserves, as well as further scope refinement based on the results of the PEA and the initial engineering design.
The results of the PEA prove the economic potential of the Raleigh Lake project. With estimated net cash flows of CAD$726.8 million, the project Registersthe highest project net present value in the International Lithium portfolio.
The PEA assumed a final brine pond design with a total brine production of 200,000 metric tonnes of lithium carbonate equivalent (LCE) per annum with an initial construction and ramp-up cost of $600 million. The mine life is estimated to be 10 years with the option for the project to expand beyond this timeframe dependent on resource permitting.
In terms of overall capital spending for Raleigh Lake, the Company estimates a total capital requirement of CAD$495.8 million with an additional cost for process plant infrastructure and other mine infrastructure requirements of CAD$103.7 million. This includes a contingency of CAD$130 million to date for project development, deferred stripping, and owner’s costs.
This favourable PEA outcome demonstrates the potential for Raleigh Lake to become a low-cost lithium producer Deemedby the Company and provides encouragement for a positivebankable feasibility outcome. Further studies and designs on Raleigh Lake are currently ongoing, with the objective to increase the resource size and refine other processes essential to successful project development.
The Raleigh Lake Project is well positioned to enter the lithium industry as one of the lowest cost producers globally and could potentially lead the wave of a new lithium era in Canadian mining.