EMP Metals Reports After-Tax NPV(8%) Of US$1.07 Billion For Viewfield Lithium Project
EMP Metals (CSE: EMPS) is reporting a significant preliminary economic assessment for its Hub City Lithium Corp joint venture, which is partially owned by ROK Resources (TSXV: ROK).
It’s being reported that Hub City’s Viewfield Lithium Brine Project, found in Saskatchewan, has an after-tax net present value (8%) of US$1.07 billion, and an internal rate of return of 45%, based on a preliminary economic assessment. The assessment assumes a 23 year project life, with the production of 12,175 tonnes of lithium carbonate equivalent per year at an average lithium concentration of 128 mg/L.
“We are very pleased with the results of this Preliminary Economic Assessment. With payback in approximately two years, a 23-year project life and a pre-tax IRR of 55%, our Viewfield project is clearly a world class Lithium asset,” comment Rob Gamley, CEO of EMP Metals.
The assessment covers just 14% of Hub City’s lithium claims in Southern Saskatchewan, amounting to 11,000 net acres.
The PEA is based around the use of direct lithium extraction, using tech from Koch Technology Solutions, and the capital costs, estimated at US$571 million, are said to include everything from the wellfield development through to the equipment needed to refine and convert lithium chloride eluent into battery grade LCE. Annual operating costs are estimated at US$40 million.
The assessment however is based on an average selling price of US$20,000 per tonne of lithium carbonate. Lithium, as per Trading Economics, last traded at 95,500 CNY per tonne, equivalent to about US$13,435. The company justified this decision by stating that it decided on the figure “by reviewing publicly available pricing data and peer released economic assessments of similar lithium resources,” while stating that peers have used a constant price of US$25,000 per tonne.
EMP Metals owns a 75% stake in Hub City Lithium, while ROK Resources owns a 25% stake.
EMP Metals last traded at $0.52 on the CSE.
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