Lithium Power posts a positive PEA report for Maricunga, Chile

Lithium Power International {ASX: LPI} posted a positive and solid looking PEA for their Maricunga lithium brine project, located in Chile.

LPI hold a 50% stake in the project, with Minera Sal Blanco and Li3 Energy.

 

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Lithium Power International {ASX: LPI} posted a positive and solid looking PEA for their Maricunga lithium brine project, located in Chile.

LPI hold a 50% stake in the project, with Minera Sal Blanco and Li3 Energy.

 

To access the report, please click HERE

 

  • The Maricunga Lithium Brine project’s Preliminary Economic Assessment (PEA) supports 20,000 tonnes per annum (t/a) production of lithium carbonate (LCE) and 74,000t/a potassium chloride fertilizer (KCl) over 20 years.
  • Project NPV is estimated to be US$1.049B before tax at 8% discount rate, providing an IRR of 23.4%.
  • Payback in 2 years and 11 months based on a 2-year ramp up period.
  • Project operating cost places Maricunga among most efficient producers with lithium carbonate production cost of US$2,938 per tonne (/t) FOB in Chile, reducing to US$2,635/t with credits from KCl by-product.
  • Project development cost estimated at US$366M (LPI’s 50% share estimated at US$183M) excluding KCl (US$23M), plus indirect costs of 14.2% (US$55M) and 18.6% (US$83M) contingency.
  • The project is progressing to a feasibility study, providing improved certainty regarding reserves, metallurgical design, equipment and operational risks.
  • Conventional evaporation pond and process technology to minimise operational risks.
  • PEA completed by Tier-1 engineering consultancy Worley Parsons to international standards. Accuracy of operating and capital cost estimates expected within a +/- 25% range.