SIGMA Lithium Corporation has announced the filing of its consolidated Phase 1 DFS and Phase 2 PFS Update of the NI 43-101 Technical Report for its 100% owned Grota do Cirilo Project.
The consolidated technical report incorporates the Phase 1 Feasibility Study and a Phase 2 Pre-Feasibility Study, and demonstrates robust combined economics, highlighted by a combined after-tax NPV8% of US$5.1 billion and combined after-tax IRR of 589%.
"With Phase 1 funded and in construction, we are delighted to share our progress on Phase 2 and the combined economics of this fully-integrated lithium project," says Ana Cabral-Gardner, co-CEO and co-chairperson of Sigma Lithium in a statement.
"We remain focused on delivering Battery Grade Sustainable Lithium for the electric vehicle supply chain, while continuing to focus on lifting the most vulnerable members of our local communities in Vale do Jequitinhonha, Brazil," she added.
READ: Sigma Lithium says updated PHASE 1 feasibility study pegs Grota post-tax net present value at $1.6 billion
The company noted that the consolidated technical report considers a fully integrated and environmentally sustainable production of battery-grade high purity lithium concentrate, with feedstock spodumene ore sourced from its Phase 1 and Phase 2 lithium deposits.
The combined operation increases average run-rate production to 531,000 tons per annum (tpa) of battery grade sustainable lithium. Additionally, Grota do Cirilo's operating life has been extended by more than 50% to 13 years with the addition of Phase 2 production from the initial eight years in the Phase 1 Feasibility Study.
The consolidated technical report estimates US$76 million in capital expenditures to build a "second production line" to produce battery grade sustainable lithium in a Phase 2, which will begin construction once Phase 1 has initiated commissioning.
The key factors influencing the robust consolidated technical report economics include: High average feed grades of 1.55% Li2O for Phase 1 and 1.37% Li2O for Phase 2; and superior recovery rates achieved by the greentech plant in the dense media separation (DMS) circuit of 65.0% for Phase 1 and 57.9% for Phase 2.
The company said it expects to announce an updated mineral resource estimate in the second quarter of 2022, with the goal of determining the potential for a further production expansion in Phase 3.
A Preliminary Economic Assessment (PEA) on Phase 3 is expected to be completed at the end of the second quarter or early in the third quarter of 2022.
Sigma Lithium is a Canadian company dedicated to powering the next generation of electric vehicle batteries with environmentally sustainable and high-purity lithium.
The company is currently in construction at its wholly-owned Grota do Cirilo Project in Brazil, which includes a state-of-the-art, green-tech processing plant that uses 100% renewable energy, 100% recycled water and 100% dry-stack tailings. The project also represents one of the largest and highest-grade hard rock lithium spodumene deposits in the Americas.
Since inception, Sigma has devoted itself to strong ESG practices, from its ongoing support of local communities to its goal of achieving net-zero by 2024.
Contact the author at jon.hopkins@proactiveinvestors.com