Canada-focused lithium player Winsome Resources Ltd (ASX:WR1) has released a scoping study for its Adina project in Quebec which proposes 17 years of active production at a rate of 280,000 tonnes of spodumene per annum, and an overall life of mine (LOM) set at 21 years.
But Winsome maintains that it is the cost parameters which would make Adina – located in the Eeyou Istchee James Bay region – one of the most capital efficient new lithium projects in North America.
This begins with the fact that existing infrastructure connected to the Renard diamond mine 60 kilometres south of Adina is still in place, keeping start-up capital costs relatively low at US$260 million.
Additionally, Winsome says that C1 operating costs are expected to average US$598 per tonne /t across the active production period, while all-in sustaining costs across the same period should average US$693 per tonne.
This would set the estimated payback period at 1.8 years.
Managing director Chris Evan said this data provided high expectations for the project, outlining a clear path to production.
“The detailed inputs to this Scoping Study mean it provides a robust basis from which to advance the development of Adina,” he said.
“In particular the outcome that the existing and well-maintained Renard facility can be repurposed for a relatively modest Start Up Capital Cost to develop our hard-rock spodumene resource is a major benefit.
“Importantly it offers a significant commercial advantage that will see the facility operate
through market fluctuations and commodity cycles.
“The ease of mining mineralised material at Adina via an initial low strip open pit along with the simple DMS flowsheet results in a competitive operating cost estimate which optimisation may improve further.”
In April this year, Winsome told investors it had an exclusive option to purchase the Renard project, which includes a processing facility and associated infratructure.
Winsome shares have risen on the news. At 12:43 AEST, they were trading at 52.5 cents – a rise of 0.96% since the market opened.