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Nevada Lithium Resources Announces Robust Preliminary Economic Assessment for the Bonnie Claire Lithium Project
NPV(8%) $1.5 BILLION AFTER-TAX AT $13,400/TONNE LCE VANCOUVER, BC, Oct. 13, 2021 /CNW/ - Nevada Lithium Resources Inc. (the "Company") (CSE: NVLH) is pleased to
About this update from Nevada Lithium Resources, Inc.
[{"type":"text","content":" NPV(8%) $1.5 BILLION AFTER-TAX AT $13,400/TONNE LCE VANCOUVER, BC, Oct. 13, 2021 /CNW/ - Nevada Lithium Resources Inc. (the \"Company\") (CSE: NVLH) is pleased to announce the results of a Preliminary Economic Assessment (PEA) for the Bonnie Claire Lithium Project, located in Nye County, Nevada. The PEA, completed in accordance with National Instrument 43-101 (NI 43-101) with Effective date of August 20, 2021, was carried-out by Global Resource Engineering Ltd. (GRE), of Denver, CO, USA. The PEA highlights are as follows: Average annual production of 32,300 tonnes of lithium carbonate equivalent (LCE) 23.8% after-tax Internal Rate of Return (IRR) $1.5 billion after-tax Net Present Value (NPV) at an 8% discount rate Upfront Capital costs of $547M, which includes $126M in contingency Lithium carbonate price assumption of $13,400/tonne Payback period of 6.7 years, after-tax 15,000 tonne per day processing rate over a 40 year mine-life Cash operating cost of $5,974/tonne LCE All-in sustaining cost of $6,057/tonne LCE Break-even price (0% IRR) of $6,545/tonne LCE Overall lithium recovery of 74.7% Stephen Rentschler, Company CEO comments, \"We are absolutely thrilled with the conclusions of the PEA on Bonnie Claire. The results demonstrate a very robust lithium Project, which is also one of the largest, if not the largest, lithium deposits in North America. The PEA also identified potential mining and recovery methods that we believe have ESG characteristics that will be attractive to lithium end-users. With current lithium prices significantly higher than the base case used in the PEA, the Project appears very well positioned to be a potentially significant and long-term contributor to the global lithium market. As evidenced by recent transactions, we believe the merger and acquisition environment in the lithium industry is very strong. Located in the world's #1 mining jurisdiction of Nevada, USA (2020 Fraser Institute Survey), we look forward to aggressively advancing Bonnie Claire through Prefeasibility and unlocking the value of this Project for our shareholders.\" The following table shows the after-tax IRR and NPV sensitivity to changes in various costs and lithium prices (Table 1): Table 1: Bonnie Claire Lithium Project Sensitivity Analysis Variable % of Base Case 50% 100% 150% NPV8 (million $) C...