Bearing Lithium Says Maricunga PEA Points to Low Costs and Short Payback

Bearing Lithium Corp. (TSXV:BRZ) released a preliminary economic assessment (PEA) for its Chile-based Maricunga lithium brine project. According to the company, it highlights low costs and a short payback period for the asset.
Highlights of the PEA are as follows:

• 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 excluding KCl, 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 used to minimise operational risks.
• PEA completed by Tier-1 engineering consultancy WorleyParsons to international standards. Accuracy of operating and capital cost estimates expected within a +/- 25% range.

Jeremy Poirier, president and CEO of Bearing, commented:

The release of this PEA is an important milestone for the Maricunga project. Prepared by Worley Parsons alongside MSB’s technical team, the level of detail and information of the report meets international standards and demonstrates the world class nature of Maricunga. The study demonstrates a very positive and robust outcome that justifies completion of a full feasibility study. The operating expenditure estimate places Maricunga in the lower quartile on the cost curve, at US$2,938/t (excluding KCl), with a payback of less than three years. We are excited to continue advancing the Maricunga project and congratulate the MSB project management team for its effort and success.

Click here to read the full Bearing Lithium Corp. (TSXV:BRZ) press release.