International Lithium (TSX: ILC.V) has recently outlined a highly favorable PEA (Preliminary Economic Assessment) for the Raleigh Lake Lithium project in Ontario. According to the company, the after-tax NPV (net present value) of CAD$342.9 million was calculated with an after-tax IRR (internal rate of return) of 44.3% annually. The project’s capital cost was estimated to be CAD$164.3 million, with operating costs expected to be around CAD$687.9 per tonne of spodumene concentrate produced.
The primary research conducted by International Lithium studied the Raleigh Lake Project’s mine plan, process plant design and economic evaluation. Highlights of the PEA include robust economics which are attributed to the unique characteristics of the Raleigh Lake Deposit – the lithium and tantalum deposits are both found together within the same ore, which simplifies the mining process.
The mine life is projected to be eight years, with a peak of 4 million tonnes of spodumene concentrate produced in the third year of operation. On average, 1.12% of lithium oxide (Li2O) is expected to be produced over the mine life. Additionally, the contained Tantalum (Ta2O5) in the ore is estimated to be 414 ppm, which represents a significant source of revenue for International Lithium.
International Lithium plans to complete a definitive feasibility study by the end of 2021. The results of this study will form the basis for all future development plans at the Raleigh Lake Project. Nearly $12 million has already been invested into the project, and the company expects the project will be significantly de-risked by the end of the year. CEO Kirill Klip is quoted as saying, “The Raleigh Lake PEA clearly outlines International Lithium’s attractive economics and provides a foundation for a solid Mine Plan for the special industrial spodumene concentrate and tantalum products.”
The Raleigh Lake project is one of International Lithium’s four core lithium projects, all of which highlight the company’s commitment to sustainable lithium and other energy-related metals. Given the PEA’s promising results, International Lithium looks poised to take advantage of the growing demand for the products their projects can produce.