Nevada Lithium Resources Inc (TSX-V:NVLH, OTCQB:NVLHF) released an updated Preliminary Economic Assessment (PEA) for its Bonnie Claire lithium project in Nevada highlighted by a $6.83 billion after-tax net present value (NPV) and a 32.3% internal rate of return (IRR).
The PEA outlines plans for a 61-year mine life producing an average of 62,354 tonnes of lithium carbonate and 129,533 tonnes of boric acid annually from the project's high-grade Lower Zone.
Initial capital costs are pegged at $2.13 billion, including a $354 million contingency. Capital intensity is projected at $34,080 per tonne of lithium carbonate, with a payback period of 2.8 years.
Operating costs are estimated at $6,800 per tonne of lithium carbonate, reduced by a $1,973 per tonne boric acid by-product credit.
The all-in sustaining cost is projected at $7,936 per tonne, with a break-even price of $8,560 per tonne.
“Over the last three years, with the discovery and expansion of the project’s high-grade lithium/boron lower zone, our technical teams have generated an expanded understanding of the potential value at Bonnie Claire,” said CEO Stephen Rentschler in a statement.
“Bonnie Claire has emerged as one of the world’s largest and highest grade sedimentary hosted lithium and boron deposits, and remains open for expansion.”
The assessment is based on underground extraction using a Hydraulic Borehole Mining method to recover high-grade material from the Lower Zone. Processing will use whole-ore agitated tank leaching with sulfuric acid, and tailings will be stored using dry stacking.
“The potential for even higher grades and volumes could positively impact the PEA economics already demonstrated,” Rentschler added.
The study assumes lithium carbonate pricing of $24,000 per tonne and boric acid pricing of $950 per tonne. Lithium recovery is expected to reach 85%, while boron recovery is projected at 48%.
Nevada Lithium said the project could benefit further from potential optimization in ore beneficiation, reagent pricing, and the production of additional critical minerals. It also noted that newly passed US tax legislation, referred to as the “One Big Beautiful Bill Act,” may enhance the project’s investment metrics.