About $31.5 million shall be used to advance the corporate’s lithium hydroxide converter and refinery in Germany. Funds will go towards long-lead gadgets akin to pyro-kilns and crystallizers and basic mission prices.
The converter-refinery mission has preliminary capital prices of $560.2 million and is estimated to provide revenues totalling $7.6 billion over the 20-year projected life. The mission has a payback interval of 64 months. Nameplate annual manufacturing shall be 24,000 tonnes of lithium hydroxide from roughly 178,000 tonnes of spodumene focus sourced from a number of third events. By-products together with alumino-silicate, gypsum and sodium sulphate can even be produced.
Rock Tech has engaged Evercore Group to help in securing financing for the converter and refinery mission. It’s anticipated that an impartial professional’s report on the converter and a front-end engineering design examine shall be accomplished within the first half of 2022 with a remaining funding determination made mid-year. If approvals are acquired in a well timed method, building might start in mid-to-late 2022 with manufacturing in 2024.
The Georgia Lake property is 100%-owned by Rock Tech, which produced a preliminary financial evaluation for the mission in March 2021. Sporadic drilling occurred on the property throughout the Fifties and Eighties, then once more from 2009-11 and 2016-18.
The Georgia Lake spodumene deposit has measured and indicated sources of 6.6 million tonnes grading 1.16% lithium oxide (Li2O). The inferred useful resource is 6.7 million tonnes grading 1.16% Li2O. A cut-off grade of 0.65% Li2O was used for each classes. A number of pegmatite zones have been recognized for open pit and/or underground mining.
Metallurgical exams utilizing a mix of gravity separation (heavy liquid separation lab exams) and flotation recovered 81.5% of the lithium in a 6.2% Li2O focus.
At an 8% low cost, the mission carries a post-tax internet current worth of $299 million and an inside price of return of 19.6%. Rock Tech places the preliminary capex at $353 million and the sustaining capex at $75 million over the 11 years of mining.
(This text first appeared within the Canadian Mining Journal)