Sigma Lithium (TSXV: SGML) this morning is reporting an increase to its proven and probable lithium reserves at its flagship Grota do Cirilo mine. The expansion is anticipated to expand its operations to 25 years, an improvement over the previously reported mine life of roughly 13 years.
The lithium reserves have increased from 54.8 million tonnes to that of 77.0 million tonnes, an increase of 40%. The grade however has decreased marginally, from 1.44% Li2O to that of 1.40% Li2O. The increase comes from the phase three and four mines, which is expected to enable the mine life expansion to 25 years and an annual processing capacity of 520,000 tonnes per year.
READ: Sigma Lithium To Proceed With 250,000 tpy Expansion, Delays Financial Results
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The increase is also said to increase low-cost lithium production growth at the mine, enabling a third or fourth processing facility to be added to the operation.
“The entirety of this Reserve balance is available near surface, allowing to the Company to efficiently mine through low cost, open pit, mining practices, avoiding the operational risks and higher levels of water use associated with underground activity,” commented Reinaldo Brandao, Co-General Manager of Sigma Lithium.
Sigma Lithium last traded at $23.00 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.
