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Critical Elements Announces a Positive Feasibility Study for the Rose Lithium Project Generating an After-Tax NPV at 8% of US$1.9 B and an After-Tax IRR of 82.4%
MONTRÉAL, QC / ACCESSWIRE / June 13, 2022 / Critical Elements Lithium Corporation (TSXV...
About this update from Critical Elements Lithium Corporation
[{"type":"text","content":"Critical Elements Announces a Positive Feasibility Study for the Rose Lithium Project Generating an After-Tax NPV at 8% of US$1.9 B and an After-Tax IRR of 82.4%MONTRÉAL, QC / ACCESSWIRE / June 13, 2022 / Critical Elements Lithium Corporation (TSXV:CRE)(OTCQX:CRECF)(FSE:F12) (\"Critical Elements\" or the \"Corporation\") is pleased to announce results of a new Feasibility Study on the Rose Lithium-Tantalum project (\"Rose\" or the \"Project\") in Eeyou-Istchee - James Bay, Québec. Unless otherwise stated, all figures are quoted in American dollars (\"US$\") and are reported on a 100% equity project basis.HighlightsAverage production, Year 2 to Year 16 of 173,317 tonnes of chemical grade 5.5% spodumene concentrateAverage production, Year 2 to Year 16 of 51,369 tonnes of technical grade 6.0% spodumene concentrateAverage production, Year 2 to Year 16 of 441 tonnes of tantalum concentrateExpected life of mine of 17 yearsAverage operating costs of US$74.48 per tonne milled, US$540 per tonne of concentrate (all concentrate production combined)Estimated initial capital cost $US$357 million before working capital100% equity basis for projectAverage gross margin of 68.3%After-tax NPV of US$1,915 million (at 8% discount rate), after-tax IRR of 82.4% and average price assumptions of US$4,039 per tonne technical grade lithium concentrate, US$1,852 per tonne chemical grade lithium concentrate, US$130 per kg tantalum pentoxide (Ta2O5)Anticipated construction time to start of production of 21 monthsThe Rose Lithium-Tantalum Project is 100% owned by Critical Elements. The Corporation's market strategy is to enter the lithium market with a low-risk approach. The completion of the feasibility on the spodumene plant is the first step to enter the market and establish the Corporation as a reliable high quality lithium supplier. The low-risk approach is characterized by simple open-pit mining and conventional lithium processing technologies.Critical Elements has consistently sought to advance the wholly owned Rose Lithium-Tantalum Project in a low-risk manner. To this end, the Corporation has completed a new Feasibility Study with a conservative spodumene concentrate price deck, as well as capital and operating cost estimates reflective of current market conditions. The new Feasibility Study incorporates a standard truck and shovel open-pi...