Latin Resources Releases Results for Colina Lithium Project PEA
THE DRILL SERGEANT: Latin Resources (ASX: LRS) reported key outcomes of a technical and financial study aka Preliminary Economic Assessment (PEA) on the company’s 100 per cent-owned Colina lithium project located in Minas Gerais, Brazil.
In a nutshell the combined Phase 1 and 2 results of the assessment are as follows:
o After-tax NPV8% of A$3.6 billion (US$2.5 billion @ 0.70 AUD:USD) and IRR of 132%.
o After-tax payback period of approximately 7 months.
o LOM average production of approximately 405,000 tonnes per annum (tpa) (55,068tpa LCE0F 1 ) of SC5.5.
o LOM average production of approximately 123,000tpa (9,125tpa LCE1 ) of SC3.
o Weighted average LOM spodumene concentrate price of US$1,699/t (A$2,427) CIF SC5.5 and US$927/t (A$1,324) CIF SC3 based on average price forecasts from Fast Markets and Benchmark Minerals; two of the leading price reporting agencies in the lithium sector.
o All-in sustaining cost (AISC) of US$536/t (operating costs, sustaining capital and royalties).
o LOM revenue of A$12.6 billion (US$8.4 billion), with free cash flow of A$6.8 billion (US$4.7 billion) over 11-years of operation.
o Extension of resource and production expansion opportunities to be evaluated in the DFS.
Based on the current 45.2 million tonnes at 1.32 per cent lithium oxide (Li2O) Mineral Resource Estimate (MRE), the company said the two-stage expansion plan for Colina project has the potential to establish it as the second largest spodumene concentrate producer in Brazil and among the lowest cost spodumene concentrate producers globally.
Latin Resources continues to expand the MRE through a resource drilling program with eleven drill rigs currently on-site supporting the Definitive Feasibility Study (DFS) due for completion in mid-2024.
A Phase 3 extension and expansion to production will be evaluated in the DFS.
“Latin Resources is extremely proud to have produced such compelling economic results with our first feasibility study on the Colina project,” Latin Resources managing director Chris Gale said in the company’s ASX announcement.
“The low-cost capex and fast track to production in 2026 will hit the sweet spot of rising lithium prices many are predicting over the coming years.
“The Colina project is on track to become one the world’s largest spodumene mines with very low operational costs.
“The company is very committed to developing a lithium mine with true sustainable mining practices, which will include hydro power, dry-stack tailings and recycled water systems.
“The phased capital development strategy provides a viable ramp-up that self-funds its expansion to become a Tier one lithium mine.
“Minas Gerais is an excellent jurisdiction to support delivery of the Colina project into a sustainable, large and low-cost spodumene operation on an accelerated basis.
“Latin Resource alongside Sigma Lithium will propel Lithium Valley, Brazil into one of the global top 4 lithium provinces.”
TO READ THE FULL ANNOUNCEMENT: CLICK HERE