The Company will host a webinar to discuss the results of the PEA in greater detail on
- Pre-Tax net present value ("NPV") (discount rate 5%) of
C$183.6M , internal rate of return ("IRR") of 839% and payback less than 1 year - After-Tax net present value ("NPV") (discount rate 5%) of
C$104.8M , internal rate of return ("IRR") of 484% and payback less than 1 year - Assumed DSO selling price of
US$591 per tonne /C$797 per tonne - 4 years of mine life with 321,000 tonnes of DSO at 1.33 % Li2O
- Revenue of
C$253.4M - Life of Mine capital of
C$3.1M - Operation cost per tonne of DSO at
C$142
The Sirmac lithium project (the "
The project calls for the direct shipping of mineralized material. The base case is EXW Chibougamau (stockpiled in
The PEA considers a conventional truck and shovel open-pit/quarry mining operation, where mineralized material is blasted and then loaded onto trucks and transported to the railhead in
The Technical Report relating to the PEA will be filed on SEDAR at www.sedar.com and
The PEA is preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral or ore reserves. There is no certainty that the preliminary economic assessment in the PEA will be realised.
The information gathered by SGS Canada – Geostat in 2014 was used for the new resource estimation with updated economic variables as GMG is of the opinion that the additional data collected in 2018 and 2022 confirm the model or, in some cases, do not concern the Dike studied here, the #5 Dike. The data has been verified in its form, grades, interpretation as well as interpolation parameters and classification and the block model is considered current. As there is no material change in that aspect, GoldMinds' qualified persons endorse the work done by SGS' qualified persons.
Considering the blocks limited to the optimized pit shell and a cut-off grade of 0.50% Li2O, the pit constrained mineral resources including ramp design of the Sirmac deposit are 192,000t of measured resources at 1.38% Li2O, 81,000t of indicated resources at 1.39% Li2O and 49,000t of inferred resources at 1.05% Li2O (Table 1). The tantalum ("TaO5") values are given from the block values inside the lithium mineralized solids and have yet to demonstrate extractability and economic potential.
These mineral resources do not represent mining reserves since they have not shown economic viability and include inferred material.
Table 1: Mineral Resources for the
Cut-Off Grade | Category | Tonnage | Average Grade | Average Grade | Average Grade |
0.50 | Measured | 192,000 | 0.639 | 1.38 | 0.0074 |
0.50 | Indicated | 81,000 | 0.647 | 1.39 | 0.0081 |
0.50 | Inferred | 49,000 | 0.487 | 1.05 | 0.0062 |
Notes: | ||
(1) | The mineral resource estimate has been calculated using the | |
(2) | Bulk density of 2.70 t/m3 is used. | |
(3) | Effective date | |
(4) | Tonnage rounded to the nearest thousand. | |
The PEA assumes conventional open pit truck and shovel mining. Production is designed to use a turnkey contractor where 1,194,000 metric tonnes, including 321,000 tonnes of mineralized material at a grade of 1.33% Li2O, will be mined in four years. The contractor will operate on a 6-month quarry operation basis with a schedule of 7 days per week, 12 hours a day.
Supporting infrastructure on site will include a small administrative building, warehouse, fuel tank, generator and various sea can for material storage. Employees will stay at an existing logging camp located about 20 kilometres by road from for the site.
Transport of mineralized material from mine site to
As the mineralized material is to be sold as a
Nonetheless, previous metallurgical testing programs demonstrated the Sirmac pegmatite #5 Dike is suitable to produce a spodumene concentrate grading 6% Li2O and above.
The site is located within the Eeyou Istchee Territory of the Mistissini Cree First Nation, and on the traditional trapping territories of the tallymen who live on the territory.
As the project is located in Eeyou Istchee /
The PEA is based on a capital cost summary, in accordance with AACE Class 5 guidelines with an estimated accuracy of +/- 35%, which is shown in the table below:
Table 2: Capital costs EXW Chibougamau (Base Case)
Description | Cost (C$) |
Mine capital costs | 500,000 |
Transfer station dome | 250,000 |
Infrastructure capital costs | 1,000,000 |
Closure costs | 500,000 |
Contingency (15%) | 337,500 |
Owner costs (10%) | 225,000 |
EPCM costs (5%) | 112,500 |
Total initial capex | 2,925,000 |
Mine operating costs by activity area are shown in the table below.
Table 3: Operating costs detailed EXW Chibougamau (Base Case)
Items
| Cost | Cost |
(C$) | (C$/t ore mined) | |
Mine operating costs | 18,901,000 | 58.88 |
Shipping Quarry to | 21,995,000 | 68.52 |
G&A | 4,815,000 | 15.00 |
Total | 45,711,000 | 142.40 |
Table 4: Operating costs detailed FOB Port Saguenay (Alternate scenario)
Items
| Cost | Cost |
(C$) | (C$/t ore mined) | |
Mine operating costs | 18,901,000 | 58.88 |
Shipping quarry to | 21,995,000 | 68.52 |
Shipping | 28,457,000 | 88.65 |
G&A | 4,815,000 | 15.00 |
Total | 74,168,000 | 231.05 |
*Numbers may not add due to rounding | ||
The main assumptions for the economic analysis and the results are summarized in the following tables:
Table 5: Main assumptions of Economic Analysis
Items | Units | Values |
Li2O spodumene concentrate | US$/mt | 4,100 |
DSO selling price | US$/mt | 591 |
Mining (mineralized material) tonnage over LOM | metric tonne | 321,000 |
Royalty on sales | % | 1.00 |
Federal tax | % | 15.00 |
Provincial tax | % | 11.50 |
Mining tax | % | 16.00 |
*DSO Selling price calculated as follow = Li2O concentrate sell price x ((%Li2O Grade)/ 6.0% Li2O concentrate) x 65% payable
Table 6: Base Case economics
Items
| Value | |
(C$) | ||
Total revenue of sales | 253,366,000 | |
Total operating costs | 45,711,000 | |
Before-tax discounted | (5.0%) NPV | 183,576,500 |
After-tax discounted | (5.0%) NPV | 104,752,000 |
*Numbers rounded |
Table 7: FOB Saguenay economics
Items
| Value | |
(C$) | ||
Total revenue of sales | 253,366,000 | |
Total operating costs | 74,167,590 | |
Before-tax discounted | (5.0%) NPV | 167,095,046 |
After-tax discounted | (5.0%) NPV | 99,961,526 |
*Numbers rounded |
Notes: | |
(1) | There has been no mineral or ore reserve estimate developed. The PEA is based on low-level technical and economic assessments that are not sufficient to support the estimation of mineral or ore reserves. Although almost 90% of the Mineral Resources are in the Measured and Indicated categories, there is no certainty that further exploration work will result in the determination that the production targets underlying the PEA will be realised. Further evaluation work and appropriate studies are required to establish sufficient confidence that any PEA production targets or financial forecasts contained in the PEA will be met. |
(2) |
Additional information is provided in the Technical Report.
The project has good grade and positive metallurgy, moreover the material is mostly above ground and uphill away from creeks and lakes which makes it a favorable environment for rapid development.
GoldMinds suggests proceeding with the extraction of a 50,000t bulk sample while preparing a pre-feasibility study or a feasibility study to obtain permits and a mining lease for the entire deposit.
Reader should note that the #5 Dike area of the property is not affected by a recently proposed protection zone for woodland Caribou.
Attention should also be placed on valuation and testing of Rubidium in pegmatite Dike #5 as the amount is significant and could add significant value to the project. (Rubidium 1-gram ampoule
The database received by Vision from SGS Geostat contained assay results for 1,747 samples. Added to the total assays, there are 60 standards (3.4 % of the samples), 79 duplicates (4.5 % of the samples) and 78 blanks (4.5 % of the samples). Standards of high and low-grade lithium were used with blanks. These results were verified by GoldMinds. Moreover, analysis of independent samples from Desharnais et al. were also verified and there was no bias as well. GoldMinds took independent samples in the field on channel samples and on new core of
The technical content of this news release has been reviewed and approved by
For further information on the Company, please visit our website at www.visionlithium.com or contact us at info@visionlithium.com.
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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: All statements, other than statements of historical fact, contained in this press release including, but not limited to those describing the impact of the foregoing on the
Forward-looking statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Risk factors that could cause actual results or events to differ materially from current expectations include, among others, delays in the scheduled delivery times of equipment, the ability of the Company to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the availability of financing or financing on favorable terms for the Company, the dependence on commodity prices, the impact of inflation on costs, the risks of obtaining the necessary permits, the operating performance of the Company's assets and businesses, competitive factors in the lithium mining and production industry, changes in laws and regulations affecting the Company's businesses, political and social acceptability risk, environmental regulation risk, currency and exchange rate risk, technological developments, the impacts of the global COVID-19 pandemic and the governments' responses thereto, and general economic conditions, as well as earnings, capital expenditure, cash flow and capital structure risks and general business risks. Unpredictable or unknown factors not discussed in this cautionary statement could also have material adverse effects on forward-looking statements.
Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, actual results to differ materially from those expressed or implied in any forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. The Company disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.
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