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News: Neo Lithium announces positive PFS results in its 3Q project

  • NPV $ 1.14 billion at eight% discount fee and 50% IRR average worth $ 11.882 per tonne LCE
  • Vital money flows generated over a 35-year lifetime obtain fast reimbursement 1 yr and 8 months supply totally different financing options
  • Confirmed and Possible Reserve for Nations at 1.three MB LCE with 790 mg / L Lithium
  • Low Manufacturing Capacity Earlier than Production was $ 319 Million (Excluding Calculating and Upkeep Capital Value) and Low Working Value $ 2,914 per Ton LCE [19659002] Average annual output of mine at 20,000 tonnes of LCE (battery), with vital potential for enlargement, as reserves are only 32% of complete useful resource
  • Properly-known remedy, the place typical evaporation lamps are then cleaned and precipitated by lithium carbonate
  • Vital prospects a. Improve the economic improvement of the project, similar to the rise of higher-level zone stock, by-products and step-by-step extensions

Neo Lithium Corp. The results of the “NFS 43-101” precompetitive research (“PFS”) are positive for the absolutely owned Tres Quebradas Lithium Saline Project (“3Q Project”) in the Catamarcan Province, Argentina.

A technical report summarizing PFS is ready by GHD Chile SA ("GHD") and Groundwater Perception Inc. NI 43-101 ("Technical Report"). GHD is a number one unbiased engineering service firm with in depth experience in project improvement, and part of the most important and least expensive lithium salt water remedy crops in Chile and Argentina. Pohjavesi Perception Oy is a technical consultancy with lithium saline experience in over 18 beams at the exploration or manufacturing stage. The evaluation of the technical report was made by the IHLLA analysis group at groundwater numerical specialists beneath the supervision of Pohjavesi Perception Oy. Groundwater Survey ”). Golder SA and G&T Ingenieria SA additionally collaborated in the investigation.

Waldo Perez, CEO of Neo Lithium, commented: “By finding a top-of-the-line kernel, we optimize the Preliminary Financial Assessment of the 3Q Project Development Plan. The new capex and opex, combined with the long life of the mine and the high quality saline solution, will allow a 50% better IRR value. In addition, we continue to drill a high-quality core and now we can confirm that the 3Q project still has significant high-quality resource growth potential. ”

PFS represents a complete research of the assessment of technical and financial viability. The 3Q Project has progressed to the stage where a most popular remedy technique has been created and an effective technique for mineral processing has been determined.

PFS Highlights

Until in any other case said, all greenback quantities in this press launch are reported in US Dollars ("$"). Foreign money Trade is predicated on current rates

Description PEA PFS Internet Submit-Tax Worth (“NPV”) @ eight% Discount Price $ 1,200 million € 1,144 Million. Inner Inner Fee of Return (IRR) 27.9% 49.9% Unique Capital Value $ 490.2 million $ 318.9 million Money Costs Tons of Lithium Carbonate ) $ 2791 $ 2.914 Average annual production (lithium carbonate) 35,000 20,000 Minivara 20 years 35 years 35 years 35 years [19659018] 35 years 35 years Time (from the start of production) 2 years 1 yr eight months

Notice: By-products (comparable to potassium chloride, calcium chloride and boric acid) are usually not included in the corporate's preliminary monetary Evaluation (PEA) 3Q Project NI 43-101 Technical Report, Catamarca, Argentina ”, ready by GHD with effective da 12.12.2017 (“ PEA ”) or PFS and will probably add worth to the 3Q project.

”We’re delighted with the results of PFS. We’ve got improved PEA results on all fronts and demanded a lower capital funding for the same NPV. The 3Q project is now easier to construct, to raised finance, and its larger measurement provides us the chance to think about attainable step-by-step extensions. The ultimate value of the project can be realized over time, says Carlos Vicens, CFO at Neo Lithium.

Mineral assets, mineral assets and mining plan

Mineral assets have been identified in the up to date Mineral Assets Evaluation Report of the third Water Lithium Project, Catamarcan Province, Argentina, manufactured by Groundwater Perception Inc., which was in pressure on 14 August 2018 and is summarized in the next table:

Top quality lithium core (minimize off at 800 mg / l) [19659043] Deposit excessive (minimize at 400 mg / l) Measured M & I Inferred Measured Indicated [Mm3] 45.4 93.eight 139 28.3 152 1070 1322 Common lithium content material (mg / l) 1006 1007 1239 701 602 614 584 lithium m Carbonate ton (rounded) 244,000 502,000 746,000 ] 186,000 569,000 3,336,000 four,005,000 2,917,000

Strategy to Maximize Value in a 3Q Project First, a high-quality core answer with 5 wells situated in a strategically measured and the high-quality element of the reported resource, and the screens have been 70 and 100 m. Early extraction of high-quality saline answer allows the design of small early-stage ponds. The grade is predicted to lower over time because the gradual decrease grade saline is extracted. Thus, the full area of ​​the pond area will grow through the years

The groundwater model was developed to help the 35-year mining plan reserve assessment and improvement. The mannequin predicts that the quality of salt water decreases over time and simulates the recovery of salt water in order to take care of manufacturing of about 20,000 tonnes of lithium carbonate equivalent all through the lifetime. The model simulates long-term saltwater restoration, based mostly on the tight composition of groundwater movement and the parameters of dissolved transport

The quantity, high quality and classification of mineral deposits taken inside the PFS mining plan are summarized under.

Yr ] Brine Quantity [Mm3] *** Common Li Content [mg/l] *** Li-Metallic [tonnes] LCE [tonnes] * Assets [%] Confirmed Possible Doubtless Probable 1 three.three 1177 1113 2542 5923 13526 zero 50% 10-Feb 73 1000 21549 44038 114642 234282 9% 20-Nov 20 Nov 101 ] 841 20211 53472 107524 [196590989284472 10% 21-35 183 670 18 694 18 694 18 694 18 694 433,651 13% * [1 9659093] 360 790 61,600 182,000 328,000 966,000 32% ]
In the course of the first ten years of the PFS mining plan, every will produce ti 5 wells. 51 l / s of top of the range saline. Over the subsequent 10 years, the identical wells would produce 64 l / s. A complete of 11 wells with particular person manufacturing speeds of 23 l / s to 49 l / s had been in use since 20 years. 000 tonnes of lithium carbonate equivalent ("LCE"). The required yields are affordable inside the recognized parameters of the aqueous brine layer. Nevertheless, there’s plenty of room for extra crops if needed. The corporate has already installed one production capable of producing steady production in a 84 l / s top quality zone. * Complete M&I assets 4,005,000 tons LCE @ 400mg / l restrict / ** Rounded / *** These two include

Proposed mining and processing

PFS defines a most popular improvement choice for typical evaporation chamber operation followed by lithium carbonate cleaning and precipitation.

”We’ve labored on making a mining plan and a process plant that maximizes the competitive advantages of a 3Q project of top of the range, low impurities and high resource,” stated Gabriel Pindar, Director and COO Neolithium. “PFS is tailored to the 3Q project and has used proven techniques used by major companies in the region to minimize use and construction risks.”

The process begins by extracting saline from pumping wells into pre-concentration tanks of photo voltaic evaporation. After about 120 days of retention, about 90% of sodium chloride and different salts are crystallized from saline. Potassium is collected in a subsequent lamp without reagents. The saline answer is then transferred to calcium chloride precipitation vessels and thickeners are used to extract a lot of the antarctic precipitating calcium. Small quantities of hydrochloric acid are needed to adjust pH and crystallize boric acid from brine. The residence time in the calcium chloride swimming pools is about 105 days. When the saline answer reaches a 3.5% lithium focus, it’s transported to a salt water remedy plant. The entire access time to this part is about 225 days and lithium recovery in the ponds is about 60%

A big salt water lithium class is predicted to vary through the life of the changing mine, 1.177 mg / l in 1 – 670 mg / l in 35. Subsequently, the focus of curiosity have to be extended over time to production stays secure. In the preliminary part 406 hectares of pre-concentration is utilized. This is adopted by two 102 acres of enlargement, every of 10 and 20. Calcium chloride pools and thickeners stay unchanged all through their lifetime. The typical manufacturing is 20,000 tonnes per yr, and the capital requirement at first of the project is minimized by first minimizing top quality. to remove boron,

  • Sulphation to add residual calcium in saturated sodium sulphate answer
  • Recreo (465 km from Fiambalá) [19659140] Mix with mother liquor and small soda to remove traces of calcium and magnesium; and

  • addition of sodium hydroxide and addition of warmth to precipitate lithium carbonate followed by drying and packaging
  • The recovery in the incineration plant is 92% and the recovery in the carbonation plant is 85%. The corporate is now operating a 1: 500 scale pilot plant in Fiamba to fine-tune this commonplace technique. Giant producers have confirmed their common strategy to business in order to realize battery-grade lithium carbonate.

    The following are the key parameters that type the idea for fiscal consolidation and other qualifications and assumptions.

    Capital Value

    The original capital value is estimated to be round $ 319 million. It is estimated that the mine's life cycle calculation and capital value estimation is approximately $ 207 million, and shutting prices are estimated to be about $ 26 million. Details of capital costs could be discovered in the following desk:

    Description ($ Million)
    Direct prices
    Evaporators and wells $ 128.1
    Plant and gear
    Infrastructure and others $ 63.7
    Direct Value Subtotal $ 247.7
    Indirect Prices $ 24.1
    Conditional $ 47.1
    Complete Initial Value
    19659146] $ 206.7
    Closing Prices $ 26.3
    Observe: Numbers don’t necessarily correspond exactly to rounding.

    Working prices

    Average operating prices per tonne processed are as follows:

    Description $ 000,000 per yr $ / ton Li2CO3
    (lithium carbonate) Direct value Chemical reactions and chemical reactions reagents $ 27,989 $ 1,469 gear $ 1867 $ 98 Power [19659153] $ 6,055 $ 318 Brine Transport $ 5,075 $ 5.075 [19659148] $ 266 Manpower $ 8,019 $ 420 Li2CO3 Transport $ 89 19659153] $ 1,527 $ 78 $ 78 Subtotal $ 52,225 $ 2740 Oblique Prices Basic Prices $ 3,310 $ 174 $ 174 Manufacturing Value 19659153] $ 2,914

    ] Word: No numbers

    Lithium Market and Worth

    Neo Lithium ordered a market survey of Benchmark Minerals Ltd in December 2018, displaying the next results: [19659211] $ / ton Yr 2021 19659047 2024 Common Lithium carbonate 14,100 16,000 14,800 14,800 14,800 [19659047] 11, 606 Average Lithium Carbonate Pricing Estimation Over The Life Of The Mine Is $ 11,882 / tonne

    Base Case Sensitivity Analysis

    Discount Price NPV After Tax
    Million IRR
    after Tax NPV Advance US $ ] Advance Tax 6% $ 1.331 $ 2,004 8% $ 1.144 49.9% $ 1,547 60.three% [1 9659222] 60.3% 10% $ 1,224

    Upcoming Work

    Neolithium is now going to carry out a full feasibility research to validate and element the weather introduced in the demonstration

    At the alternative degree, it is strongly recommended to extend the drilling depth to a top quality zone under 100 meters already drilled. The definition of further high quality assets might have a big impression on lamp necessities and may improve production with fewer ponds. This program is already underway and the first drilling results are anticipated soon.

    As well as, long-term pumping experiments in a high-quality zone are advisable to check the aquifer on manufacturing scale in pumping situations. The corporate is presently finishing up a 20-day long pump check, which is nearly full.

    The operation of the pilot plant, which is presently in the commissioning and testing part, is essential for finishing the feasibility research and demonstrating the plant idea.

    The ultimate feasibility research should bear in mind the financial availability of by-products, together with potassium chloride, calcium chloride and boric acid, all of which are readily available with little further funding.

    The anticipated feasibility research is predicted to be

    Environmental and Permit Issues

    Neo-lithium is absolutely approved for the present work program by way of feasibility and development. The corporate has carried out primary analysis and has now completed the final report on the environmental influence assessment of mining development. The report is predicted to work for the Argentinian mining authorities immediately.

    Technical Knowledge

    The technical report is shipped to SEDAR inside 45 days of the publication of this bulletin

    PFS is prepared in response to GHD and Groundwater Insight NI 43-101 along with globally recognized consultants. The two unbiased qualified specialists that lead the skilled group are:

    • Gino Zandonai, P.Eng., Chilean skilled mining engineer and competent individual underneath CRISCO # 0155, is an unbiased certified individual signing the report to GHD Chile SA; and
    • Mark King, Ph.D., P.Geo., a Canadian professional geographer who is registered with the Nova Scotia Affiliation of Skilled Analysis Institutes, is an unbiased qualified individual signing the Groundwater Perception report.

    These two certified NI 43-101 people have verified that the technical info in this press launch is accurate and accepts the written disclosure of such info.

    Aside from the above, all of the scientific and technical info contained in this press launch has been reviewed, accepted and accepted by Mr. Perez, Ph.D. and P.Geo., Managing Director and Director of Neo Lithium, and a professional individual for the needs of NI 43-101, and in addition oversee the preparation and approval of this launch.

    Project Finance

    PFS defines the primary monetary parameters of a 3Q project. The company now has a robust basis for discussing numerous financing options to maneuver the project ahead after strategic discussions with a number of partners throughout 2018.

    ”The robust project financial system produced by PFS additional strengthens our view that the 3Q project is an exceptional project, especially as our business has unprecedented progress and wishes predictable, long-term, reasonably priced producers,” says Constantine Karayannopoulos, chairman of Neo Lithium Company. “We have no options, and the next step is a careful analysis of how to maximize shareholder value. ”

    About Neo Lithium Corp

    Neo Lithium Corp. has shortly turn out to be a serious new identify for lithium salt water exploration because of its top quality 3Q project and experienced workforce. Neo Lithium is already on its well-known 3Q project, a singular high-quality lithium salt water and salon complicated in the Latin Lithium Triangle assortment.

    The 3Q project is situated in the province of Catamarca, the most important lithium manufacturing area in Argentina. The project covers about 35,000 hectares and the world of ​​the Salar complicated is approximately 16,000 hectares.

    The technical staff that has found the 3Q project has created this distinctive salary complicated as probably the most skilled lithium pieces. For example, this group discovered and led technical work, together with the definition of assets and an entire feasibility research that established Cauchar's lithium salon as one of the world's largest lithium salt solutions.