Allkem (TSX: AKE; ASX: AKE) has released a feasibility study for its James Bay hard rock lithium project in Quebec, located 130 km east of James Bay and the Cree Nation of Eastmain.
The feasibility study forecasts average production of 321,000 tonnes of spodumene concentrate a year over a 19-year mine life and capital costs of US$285.8 million.
A 2 million tonne per year process plant would produce lithium oxide spodumene concentrate at cash operating costs (FOB Montreal) of US$333 per tonne of 5.6% lithium oxide concentrate. The project’s shallow, near-surface mineralization, is ideal for open pit mining, the study concluded, and it would have a life-of-mine strip ratio of 3.5: 1.
At an 8% discount rate, the project would generate a post-tax net present value (NPV) of US$823 million and a post-tax internal rate of return (IRR) of 35.2%.
The company aims to start construction in the third quarter of 2022 with commissioning forecast to start in the first quarter of 2024.
Hydropower will make up 45% of the project’s power needs, and will be used in the processing plant, fixed infrastructure and select mobile equipment.
The project has proven and probable reserves of 37,207 tonnes grading 1.30% lithium oxide for 483,700 tonnes tonnes of lithium oxide
James Bay’s indicated resource is 40.30 million tonnes grading 1.40% lithium oxide for 564,200 tonnes of lithium oxide.
“The feasibility study results clearly demonstrate the exceptional value that will be generated for all stakeholders through the development of this project,” Allkem CEO Martin Perez stated in a press release.
“It will utilise clean hydro-power to provide lithium into the EV and other low carbon industries. Supply chain and logistics emissions can be minimised by supplying into the rapidly expanding markets in North America and Europe.”
At presstime in Toronto, Allkem shares were trading at $8.33within a 52-week trading range of $9.30 and $3.89.
Be the first to comment on "Allkem releases feasibility study for James Bay lithium project in Quebec"