A conceptual study of a lithium deposit in northwestern Ontario shows it has the potential to be developed into an underground and open-pit mine.
A preliminary economic assessment (PEA) released by Rock Tech Lithium of Vancouver estimates an 11-year mine life for its Georgia Lake lithium property, near the north shore of Lake Superior.
The PEA zeroed in on only a portion of the company’s 11,632-hectare property, namely its Nama Creek Main Zone.
The Georgia Lake property is located 145 kilometres northeast of Thunder Bay, just east of Highway 11, and 17 kilometres south of the town of Beardmore.
Some of the study’s highlights indicate a total production of 1.1 million ounces of chemical-grade spodumene concentrate of 6.2 per cent lithium oxide.
The pre-production capital requirements are $64.2 million. The sustaining capital is $62 million. Positive cash flow is expected to be realized in the third year of production. Life of mine revenue is more than $1.1 billion.
This was a milestone moment for Roch Tech CEO Martin Stephan.
"We are pleased that the results confirm our optimism with respect to the project and confirm for our shareholders that their investments in advancing this project have been a success. Although the PEA focused only on a portion of our NI 43-101 resource estimate, it shows the real value of our company's assets and proves the excellent profit potential with an expected annual EBITDA of $64 million (CAD) which is nearly double the current market capitalization."
More details covering the development of the mine, production of spodumene concentrate, project infrastructure, mine design and operations, recovery, processing and reclamation will be posted on SEDAR.
Lithium was first discovered on the property in 1955. Rock Tech, an explorer firm focus on lithium and other battery-grade metals, has been working on the property since 2016.