Nevada Lithium Resources (TSXV: NVLH) has outlined a larger net present value for their Bonnie Claire Lithium Project found in Nye County, Nevada. The figure follows the completion of a preliminary economic assessment at the property.
The estimate is based on an operation with a life of mine of 61 years, with average annual production of 62,354 tonnes of lithium carbonate and 129,533 tonnes of boric acid. That production is expected to come entirely from the Lower Zone at Bonnie Claire, which consists of high lithium and high boron grades, while the PEA excludes the Upper Zone resource, which has moderate lithium and low boron grades.
The operation is set to consist of underground mine using hydraulic borehole mining, producing 8,000 tonnes of ore per day with average grades in excess of 4,500 ppm lithium. Processing will occur via a whole-ore agitated tank leaching processing using sulphuric acid, after which residual mineralized material will be stored in dry-stack tailings. Recoveries are estimated at 85% for lithium and 48% for boron.
READ: Nevada Lithium Hits 207 Metres Of 4,154 ppm Lithium
Initial capital costs are estimated at $2.13 billion, which includes $354.1 million in contingency costs. Total capital costs over the life of mine meanwhile are estimated at $2.89 billion. On a per tonne basis, operating costs are estimated at $6,800 per tonne of lithium carbonate produced, while all-in sustaining costs are estimated at $7,936 a tonne. The break-even operating price meanwhile is estimated to sit at $8,560 per tonne.
The study overall has outlined a net present value of US$6.83 billion for the Bonnie Claire project on an after tax basis, alongside an IRR of 32.3% and a payback period of 2.8 years. The estimate is based on an 8% discount rate and price assumptions of $24,000 per tonne for lithium carbonate and $950 per tonne for boric acid.
The preliminary economic assessment is based on a new mineral resource estimate, which outlines indicated resources of 275.85 million tonnes at 3,519 ppm lithium and 10,758 ppm boron for contained resources of 0.971 million tonnes of lithium and 2.968 tonnes of boron. Inferred resources total 1,561.06 million tonnes at 3,085 ppm lithium and 9,593 ppm boron, for contained resources of 4.816 million tonnes of lithium and 14.976 million tonnes boron within the Lower Zone.
Nevada Lithium last traded at $0.135 on the TSX Venture.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
