Century Lithium Corp. (TSX-V:LCE, OTCQX:CYDVF) has unveiled a positive feasibility study for its 100% owned Clayton Valley lithium project in Nevada.
"Our big headline number is a net present value at an 8% discount rate of $3 billion which comes with a 17.1% internal rate of return driven by a base price for lithium carbonate of $24,000 per ton," Century Lithium CEO Bill Willoughby told Proactive.
These figures also assume a $600 per dry metric ton price for surplus sodium hydroxide.
The feasibility study, prepared by Wood Group USA and Global Resource Engineering, showed that Century Lithium's three-phase production plan will generate a life-of-mine average of 34,000 tons per annum (tpa) of battery-quality lithium carbonate.
Measured and indicated resources total 1,207.33 million tonnes at an average grade of 957 parts per million (ppm) of lithium, containing 1.16 million tons of lithium or nearly 6.15 million tons of lithium carbonate equivalent.
Over the 40-year mine life, proven and probable mineral reserves are estimated to total 287.65 million tons at an average grade of 1,149 ppm lithium, containing 0.330 million tons of lithium or 1.759 million tons of lithium carbonate equivalent.
The company highlighted that the project has a low operating cost, with an average cost of $8,223 per ton of lithium carbonate equivalent produced or $2,766 per ton after sales of surplus sodium hydroxide.
With the Feasibility Study now completed, the company is focused on engineering and permitting. It is also advancing its discussions with government agencies, strategic partners, and other parties to secure funding for the project.
Willoughby told Proactive that the company has been in discussions with the Department of Energy and players in the lithium sector including OEMs and producers regarding financing.
"Now we have the documentation from the feasibility study, we're in a good position to carry that forward," he said.
Getting the project to Phase 1 production of 13,000 tpa lithium carbonate equivalent is estimated to cost $1.54 billion.
The company highlighted that Clayton Valley is designed for expansion, with Phase 2 costing $0.651 billion to bring the project to 28,000 tpa lithium carbonate equivalent and Phase 3 a further $1.336 billion to expand it to 41,000 tpa lithium carbonate equivalent.
Century Lithium highlighted that its patent-pending chloride leaching process combined with Direct Lithium Extraction (DLE) has undergone more than two years of testing at the company’s pilot plant, which supported the Feasibility Study.
“The study indicates our project has robust economics, made possible with our unique chlor-alkali and DLE processes," Willoughby said in a statement.
"Completion of the study marks a major milestone for the company and is the result of the dedicated work and efforts of our team of employees and consultants."
- Updated with video, CEO quotes -