QUEBEC - The 43-101-compliant pre-feasibility study prepared for Canada Lithium of Toronto indicates that the province could have a new battery-grade lithium carbonate producer as early as 2012. The Quebec lithium project is located 60 km north of Val d'Or.
The latest study posits an open pit mine and mill operating at 2,950 t/d to produce 42.5 million lb of lithium carbonate (Li2CO3) annually. Cash operating costs are estimated at US$1.27/lb of product. Initial capital costs would be US$148 million for the first phase of development with a pre-tax net present value (NPV) at an 8% discount of US$325 million and a pre-tax internal rate of return (IRR) of 33.6%. Stage One development would have a life of 14.8 years, but the possibility exists of expanding the annual production rate and extending mine life to 30 years.
The Quebec lithium property has measured and indicated resources of 31.6 million tonnes at 1.11% Li2O plus an inferred resource of 38.9 million tonnes grading 1.12%. The property is located within a 14-hour drive of Detroit, which the company calls the emerging North American centre for electric vehicle and battery manufacturers.
Canada Lithium says it has been in discussions with North American end users, and it sees the opportunity to produce and sell 50,000 tonnes of spodumene annually as well.
The Quebec lithium property was the site of a former underground mine from 1955 to 1965 when spodumene concentrates, lithium carbonate, lithium hydroxide monohydrate, lithium chloride and feldspar were produced.
A fuller description of the property may be read at www.CanadaLithium.com.
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