International Lithium Corp (TSXV:ILC; OTC) has released a ‘highly favourable’ Preliminary Economic Assessment for the Raleigh Lake lithium mine project in Ontario, Canada, with After-Tax NPV of CAD$342.9M, and After-Tax IRR of 44.3% p.a. A Preliminary Economic Assessment assesses the economic viability of a mining project.
Chairman & CEO John Wisbey said it would have been even more favourable had it not been for the depreciation in the price of lithium spodumene over the last six months.
The value of significant Rubidium deposits have not been included in the PEA as the relatively small market for Rubidium requires closer analysis, however the Rubidium has significant economic potential.
Chairman & CEO John Wisbey told focusIR the strategy is not to create a large scale mine which may take a very long time to permit and raise funds for, rather it intends to build a low-impact, small-scale and therefore low risk lithium mine at Raleigh Lake. The mine will be open caste and use crushing and milling on site to produce lithium spodumene.
The Raleigh Lake project is located close to the Trans-Canada Highway, with existing infrastructure nearby, and Canada is a safe and favourable mining jurisdiction.
PEA Highlights Economics (discounted at 8% p.a., CAD$)
· Pre-tax Cashflow = CAD$709.4 million, NPV = CAD$385.1 million, IRR = 46.5% p.a.
· After-tax Cashflow = CAD$634.0 million, NPV = CAD$342.9 million, IRR = 44.3% p.a.
· Price assumptions: CAD$3,139/tonne for 6% Li2O concentrate (USD$2,325/tonne)
CAPEX/OPEX
· Total pre-production capital costs: CAD$111.9 million
· Total sustaining capital: CAD$17.5 million
· Total life of mine operating costs: CAD$381 million
· Average operating costs: CAD$94.38/tonne milled, CAD$993/tonne
