QUEBEC - The positive updated feasibility study for the Quebec lithium mine near Val d'Or has owner Canada Lithium of Toronto planning to start construction at the site in Q3 2011. The updated study, replacing the one of December 2010, contemplates an open pit mine and processing plant that will have an initial mine operating life of approximately 14.9 years. The planned annual output for the project remains at approximately 20,000 tonnes per year of battery-grade lithium carbonate (Li2CO3).
The key parameters include a net present value (pre-tax) of US$190 million and an internal rate of return (pre-tax) of 22%. Construction capital cost will be US$202 million, and the project will pay for itself in four years. Average operating costs per tonne milled will be US$45.09.
The Quebec lithium project has measured and indicated resources of 29.3 million tonnes at an average grade of 1.19% Li2O, plus a 20.9-million-ton inferred resource at 1.15% Li2O. Proven and probable reserves total 17.1 million tonnes at 0.94% Li2O, using a cutoff grade of 0.6%.
Canada Lithium expects full production to be achieved by the end of 2013, subject to financing and final permitting. For additional news, see www.CanadaLithium.com.
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