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Sonora Lithium Project - Pre-Feasibility Study
Sonora Lithium Project - Pre-Feasibility Study.
About this update from Cadence Minerals Plc
[{"type":"text","content":"\n \nRNS Number : 9052Q Rare Earth Minerals PLC 03 March 2016 \n\nRare Earth Minerals Plc\n(\"Rare Earth Minerals\", \"REM\" or \"the Company\")\nPre-Feasibility Study estimates a U$776m net present value at the Sonora Lithium Project\nRare Earth Minerals Plc (AIM: REM; OTC REMMY) is pleased to announce that Bacanora Minerals Ltd ('Bacanora') has today published a summary of the Pre-Feasibility Study (\"PFS\") for the Sonora Lithium Project (the\"Project\") in northern Mexico. The results confirm REM's belief that the Sonora Lithium Project could represent a significant low cost lithium producer supplying a rapidly growing market.\nREM holds an interest in the Project though its 17.19% holding in Bacanora and the joint venture interests of 30% in each of Megalit S.A. de CV and Mexalit S.A. de CV as fully described below.\nFollowing the results of the PFS, Bacanora will immediately commence a Feasibility Study with an aim to bring the Project into production, with indicative timetable of the commencement of commissioning in Q4 of 2018. The full news release from Bacanora is shown below. \nA technical report on the PFS will be available within forty-five days of the date of this news release.\nHighlights:\nPFS confirms the Sonora Lithium Project as a strategic asset in the future global lithium market based on:\n· Phased production approach: from 17,500 tonnes per year of battery grade lithium carbonate product increasing to 35,000 tonnes per year of battery grade lithium carbonate representing approximately 20% of current global lithium production\n· Robust project economics:\no Payback period of 5 years\no Average EBITDA of US$ 134 million per annum\no Pre-tax net present value estimated at US$776 million (based on 8% discount rate)\no Pre-tax internal rate of return estimated at 29%\no Average life of mine (\"LOM\") operating cost per tonne (US$/t Li2CO3 net of K2SO4 credits) at US$2,100\n· Long-term mine life:\no 20 year mine life with an annual average production capacity of 35,000 of lithium carbonate\no Probable Mineral Reserves of 2.1 million tonnes (\"Mt\") of lithium carbonate equivalent (\"LCE\")\no Indicated Mineral Resource estimate of 5.0 Mt of LCE and an Inferred Mineral Resource of 3.9...