Presentation - Noosa Mining Conference November 2020
Minera Salar Blanco S.A. (MSB) is the joint venture that owns the Maricunga project. Ownership is 51% Lithium Power International (ASX:LPI), 31% Borda Group and 18% Bearing Lithium (CVE:BRZ).
Maricunga is Chile's highest grade and most advanced lithium project outside the Salar de Atacama.
A 2019 Definitive Feasibility Study (DFS) by WorleyParsons supports 20,000 tonnes per annum production of LCE over 20 years. The DFS shows pre tax NPV of US$1.302 billion and IRR of 29.8% assuming a 50% debt/equity ratio (after tax NPV of US$940 million, IRR 26.7%). On a 100% Equity Basis, NPV of US$1.286 billion, IRR of 23.8%.
Forecast CAPEX of US$563 million includes direct development costs of US$456 million, indirect costs of US$45 million and contingencies of US$63 million, to rank as one of the lowest cost lithium carbonate producers globally Operating costs estimated at US$3,772 per tonne of LCE.
The maiden ore reserve estimate of 742,000 tonnes LCE exceeds the 20 year mine life production needs, meeting JORC and NI 43 101 standards.
There is potential to expand resources and reserves below the existing resource currently defined to 200 m. The exploration target between 200 m 400 m, confirmed by deep borehole results, can add between 1 Mt-2.5 Mt of new resources.
First battery grade Li2CO3 samples, meeting commercial high quality battery grade specifications were produced during 2018 using Maricunga's brine from test evaporation ponds with 99.4% purity Li2CO3 reached.
Financing discussions are underway and approaches have been received from international companies for off-take deals. The EPC bidding process is expected to be finalised in H1 2021.
Production process design, engineering and testing was led by Tier 1 German Engineering company, GEA Messo, one of the leading suppliers for production plants to the lithium industry worldwide.
The first battery grade Li2CO3 samples, meeting commercial high quality battery grade specifications were produced during 2018 using Maricunga's brine from our test ponds (99.4% purity Li2CO3 reached) which have operated for more than 18 months on site.
A Definitive Feasibility Study (DFS) by WorleyParsons was completed in Jan 2019, and indicates Maricunga to be a low cost lithium producer with attractive economics.
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About Lithium Power International Ltd
Lithium Power International Limited (ASX:LPI) is a pure-play lithium explorer and developer, focusing on developing and fast-tracking to production the high-grade Maricunga lithium brine project in Chile.
LPI has a well-known performing technical team with the experience to take the Maricunga project all the way through the development stages to production.
The regions that LPI is currently focused on are:
1. Maricunga JV (Chile) - Located within the "Lithium Triangle", Maricunga is Chile's highest grade and most advanced lithium project outside the Salar de Atacama. The project lies 170 km northeast of Copiapo and 250 km from the port of Caldera.
2. Pilbara (Western Australia) - LPI has three granted exploration tenements covering 203 km2 in the Pilbara region of northern Western Australia. The largest granted exploration tenement is the Pilgangoora tenement which is 2-3 km west of the Pilbara Minerals (ASX:PLS) and Altura Mining (ASX:AJM) lithium deposits.
3. Greenbushes (Western Australia) - LPI has two granted exploration tenements covering 400 km2 in the Greenbushes area of southern Western Australia. The tenements are adjacent to the world's largest hard rock lithium mine owned and operated by Tianqi/Talison.
4. Centenario (Argentina) - Through its Argentinian subsidiary, Lithium Power holds a total of seven granted tenements in the Centenario lithium brine salar within the Salta province of the Puna Plateau. In total, the seven granted tenements cover an area of 68.46 km2.
With the exception of the Maricunga JV, all tenements are 100% owned by LPI or LPSA (including rights to the Centenario tenements).
Lithium Power International Ltd