International Lithium Corp. recently completed a Preliminary Economic Assessment (PEA) on their Raleigh Lake Lithium project in Clayton Valley, Nevada. Their results display a highly favorable after-tax Net Present Value (NPV) of CAD$342.9 million and an after-tax Internal Rate of Return (IRR) of 44.3% at a discount rate of 8%.
The Raleigh Lake Lithium project is a modern, lithium brine play that will be accessed to depths of up to 1500 metres. According to the PEA, the mine will operate for 29 years with a Mine Life of 17 years and a recovery period of 12 years.
The PEA outlines a total capital cost of US$5.55 billion, with significant operating cost savings attributed to the use of deep well pumping technology. Furthermore, the project has potential production of 8,300 tonnes per year of the mineral lithium carbonate over its life span.
The PEA also indicates that the Battery Grade Lithium Carbonate production will be valued at 56% lower than current market prices due to its location in a mining friendly environment. This significantly lower cost of production is expected to drive higher profitability for the project.
In addition, the project is relatively low risk with multiple mitigating factors already identified. These include strategic and technical studies, feasible mine and metallurgical designs, potential route for delivery of concentrate from the Clayton Valley to ports in Mexico, and a large domestic market in the U.S.
Overall, International Lithium has clearly outlined a highly favourable outcome for their Raleigh Lake Lithium project. With an after-tax NPV of CAD$342.9 million and an after-tax IRR of 44.3%, the project is expected to provide significant benefits to shareholders over the medium to long term.
