Century Lithium Corp. (TSX-V:LCE, OTCQX:CYDVF) said on Monday it has identified potential capital expenditure savings of up to 25% at its Angel Island lithium project in Nevada following an internal review and optimization study.
The study, which examined the initial Phase 1 CAPEX estimate of $1.58 billion outlined in the project's feasibility study, identified cost reductions through adjustments to the processing flow sheet, equipment selection, and updated vendor quotes.
Century Lithium also found efficiencies in engineering and construction planning, reducing redundancies and streamlining the production process for battery-grade lithium carbonate, according to a statement from the company.
Lower projected costs for site services and indirect expenses such as contingency and engineering, procurement, and construction management further contributed to the anticipated savings, it added.
"We are very pleased with the outcome of the Optimization Study,” CEO Bill Willoughby told investors.
“These results, if confirmed by an updated Feasibility Study, will have a significant impact on the economics of Angel Island.”
The company plans to incorporate the findings into an updated feasibility study and expects additional value from the sale of surplus sodium hydroxide generated during lithium production.
"Lithium remains critical for Western independence in its energy transformation, underpinning the long-term fundamentals of the industry despite current depressed prices,” Willoughby said.
“We believe that with these improved economics and its advanced stage of development Angel Island has now become a key asset in the broader United States' lithium strategy."