Lithium bearing pegmatite at the Georgia Lake property in northwest Ontario. (Image: Rock Tech Lithium)
ONTARIO – Vancouver-based Rock Tech Lithium has tabled the preliminary economic assessment for its 100%-owned Georgia Lake lithium property in the Thunder Bay mining district. The PEA covers only a portion of the George Lake project, namely the Nama Creek Main zone.
The assessment used a base case chemical grade spodumene concentrate of 6.2% lithium oxide, a price of US$800 per tonne for the first five years of production and US$850 for the next six years, and an exchange rate of US$1.00:C$1.30.
Both open pit and underground mining is planned. A capex of $65.3 million will be needed to develop the project. Over the life of the mine, Georgia Lake will generate revenues of C$1.14 billion. Average operating costs per tonne of concentrate will be C$397.
The pre-tax net present value (8% discount) will be C$312.2 million and after tax, C$210.2 million. The pre-tax internal rate of return will be 62% and after tax 48%. After taxes, the payback period will be 3.5 years.
Total production will be 1.1 million tonnes of spodumene concentrate grading 6.2% lithium oxide or 96,000 t/y.
Rock Tech said the June 2018 43-101 report put measured resources at 1.89 million tonnes grading 1.04% lithium oxide, indicated resources at 4.68 million tonnes grading 1.00%, and inferred resources at 6.72 million tonnes grading 1.16%.
More information is posted at www.RockTechLithium.com.