Sigma Lithium Corp (TSX-V:SGML, NASDAQ:SGML) revealed a substantial increase in its proven and probable mineral reserves at its Grota do Cirilo operation in Brazil.
The expansion, equivalent to 22.2 million tonnes, is about 40% greater compared to the previous reserve estimate.
Grota do Cirilo’s consolidated proven and probable reserve balance now stands at 77 million tonnes, boasting a lithium oxide (Li2O) content of 1.40%.
The increase, occurring within the combined phases 3 and 4 mines, extends the duration of Sigma's integrated mining and beneficiation operations to an estimated 25 years, according to a statement from Sigma.
The firm is in the midst of construction of a second industrial line with a capacity of 250,000 tonnes per year, augmenting Sigma's processing capacity to 520,000 tonnes per annum.
Sigma said it anticipates upholding its existing Phase 1 low operating cost model as it progresses into subsequent phases, affirming its ongoing commitment to executing mineral and geological development initiatives aimed at gradually converting its Resources into Reserves.
Reinaldo Brandão, co-general manager and head of mining operations, noted that the reserve balance is near surface, which allows for low-cost, open pit mining that avoids the operational risks and higher levels of water use that come with underground activity.
"This significant increase in mineral reserves demonstrates our commitment to continuously invest in Brazil to unlock the full economic potential of our mineral concessions,” Sigma CEO Ana Cabral said in a statement.
Cabral emphasized Sigma's dedication to unlocking Brazil's lithium potential.
“We believe Brazil is poised to become one of the global leaders in lithium production as a result of its optimum conditions for integrated lithium industrial processing and mining: legal certainty in a consolidated mining code, rule of law, straightforward permitting processes, tropical climate, green and affordable renewable energy and power lines infrastructure," Cabral said.