The key attractions of the Authier lithium project, include:
Advanced, near term development potential – the Company is targeting completion of a Definitive Feasibility Study in early 2018, and first production in 2019 to capitalise on the high price lithium concentrate pricing forecast over the next five years. In parallel, studies on producing a premium value-added lithium carbonate product are progressing.
Pre-Feasibility Study demonstrating technical and economic viability – PFS completed in February 2017 demonstrating strong investment case for a low capital expenditure and operating cost project selling lithium concentrates. PFS results include pre-tax NPV8 of C$140 million, IRR 39% and payback 2.2 years, based on a start capital expenditure of C$66 million.
Maiden Ore Reserve – JORC Ore Reserves totalling 10.2Mt @ 1.02% Li20 based on a JORC Mineral Resource of 13.75Mt @ 1.07% Li20 at 0.5% Li20 cut-off grade.
JORC Resource expanded – In May 2017, based on 4,100 metres of new drilling, the JORC Mineral Resource was expanded to 17.4Mt @ 1.02% Li20.
PFS optimisation program underway – an updated PFS is being prepared based on the expanded JORC Resource, and metallurgical and geotechnical optimisations programs.
Simple deposit and processing – resources defined in one spodumene bearing pegmatite based on 20,000 metres of diamond drilling. Deposit amenable to low-cost open pit mining techniques. Processing based on a conventional crush, grind and flotation flowsheet.
Excellent infrastructure – situated in close proximity to mining support services, low-cost electricity, gas, and road networks to export ports.
SYA Price at posting:
2.0¢ Sentiment: Buy Disclosure: Held
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