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Pure Energy Minerals Announces Positive Preliminary Economic Assessment and Plans for Pilot Plant at Clayton Valley Project
DENVER, June 26, 2017 (GLOBE NEWSWIRE) -- Pure Energy Minerals Limited (TSX-V:PE) (FRANKFURT:A111EG) (OTCQB:PEMIF) (the “Company” or “Pure Energy”) is pleased t
About this update from Pure Energy Minerals Ltd.
[{"type":"text","content":"DENVER, June 26, 2017 (GLOBE NEWSWIRE) -- Pure Energy Minerals Limited (TSX-V:PE) (FRANKFURT:A111EG) (OTCQB:PEMIF) (the “Company” or “Pure Energy”) is pleased to announce the results of a Preliminary Economic Assessment (“PEA”) for the production of lithium hydroxide monohydrate (“lithium hydroxide” or “LiOH∙H2O”) from its Clayton Valley Project (the “Project”) located in Esmeralda County, Nevada. The PEA was prepared jointly by an expert consulting group comprised of Tenova (“Tenova”), Montgomery & Associates (“Montgomery”), SRK Consulting (“SRK”), and Andeburg Consulting Services Inc. (“ACSI”). Preliminary Economic Assessment Highlights (All Currency in US $) The PEA forecasts average annual production of approximately 10,300 tonnes (“t”) of lithium hydroxide or 9,100 t lithium carbonate equivalent (“LCE”), using more efficient and sustainable new technologies that do not require evaporation ponds. Over its expected 20-year life, the proposed project has an estimated Net Present Value (“NPV”) of $264 million (after tax at 8% discount rate) and an estimated Internal Rate of Return (“IRR”) of 21% (after tax). The study projects an estimated average “steady-state” operating cost of $3,217 per tonne of lithium hydroxide monohydrate and product sale pricing ranging between $9,000 and $16,500 per tonne. Having these attractive margins and an estimated initial capital cost of $297 million, the project achieves pay-back in just over 4 years, even allowing for a ramp-up of more than one year. Some of the key economic parameters are summarized in the first table and chart below. The PEA incorporates Tenova Advanced Technologies’ (“TAT”), formerly Tenova Bateman Technologies, proprietary lithium recovery flow sheet (the “Process”) that is anticipated to provide improved operating benefits and flexibility while maintaining a balance between production and expense. Based on the mini-pilot plant and subsequent engineering studies, the Process achieves estimated lithium recoveries of greater than 91%. Traditional lithium brine processing using evaporation ponds typically struggles to achieve 50% lithium recovery. The PEA also includes an updated drainable mineral resource estimate, which estimate includes approximately 247,000 tonnes of LiOH∙H2O (218,000 tonnes of LCE) in the inferred category. Patrick Highsmith, Chief Executive Off...