Noram Lithium (TSXV: NRM) has launched the outcomes of a preliminary financial evaluation for its wholly owned Zeus lithium mission in Nevada.
The Zeus property is positioned in Clayton Valley, lower than 1.6 km to the east of Albemarle’s (NYSE: ALB) Silver Peak mine, which is at present the one lithium manufacturing facility in the US.
In accordance with the NI 43-101 compliant PEA, the Zeus lithium mission has an estimated after-tax internet current worth (NPV) of US$1.3 billion and an inside price of return (IRR) of 31% (utilizing an 8% low cost price).
The examine estimated preliminary capital prices of US$528 million and an after-tax payback interval of three.23 years.
Gross income for the mine is forecast to run to US$303.4 million a 12 months.
As soon as in full operation, the mine shall be producing at a price of about 17,000 tonnes per day. The manufacturing schedule makes use of ore from the primary 11 phases, leading to a 40 12 months mine life. Manufacturing over the lifetime of the mine is estimated at 245.4 million tonnes averaging 1,093 elements per million lithium.
The stripping ratio for the mine is low at a mean of 0.07:1 over the lifetime of the mine. Mining consists of a truck and shovel technique, with blasting being pointless as a result of softness of the ore.
“This examine represents probably the most important milestone thus far for Noram and establishes us amongst restricted friends as the latest low value, high-grade, near-term lithium producer in North America,” Sandy MacDougall, Noram’s CEO commented in a information launch.
“I’m very happy with what our group has achieved rapidly, on schedule, and on the opportune time contemplating present and forecasted demand for lithium carbonate,” he added. “This preliminary financial evaluation is probably the most important step thus far in direction of our objective of lithium manufacturing and supplies the market with a benchmark to guage our mission’s viability and worth in contrast with different lithium builders.”
Noram now anticipates finishing a prefeasibility examine in 2022.