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Green Technology Metals Boosts Market Position through Root Lithium Project
Apr. 15, 2025 09:30AM PST
A preliminary economic assessment has confirmed the viability of the project, estimating the need for US$330 million to accelerate the project.
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North America-focused Green Technology Metals (ASX:GT1,OTC Pink:GTMLF) has completed an updated preliminary economic assessment (PEA) for its Root lithium project in Ontario, Canada.
Green Technology Metals said that the PEA evaluated Root on a standalone basis, while the December 2023 PEA combined Root with the company's advanced Seymour lithium project. The new PEA took into consideration the recently updated Root Project MRE, revised pit optimisations and mine development options, and changed lithium market conditions.
“(The PEA confirms Root) as a technically and economically robust standalone operation,” Managing Director Cameron Henry said in an April 9 release. “With a longer mine life, reduced upfront capital requirements, and strong economics, Root is well-positioned to support GT1’s broader strategy of establishing a vertically integrated lithium supply chain in Ontario.”
Root is situated within the English River Subprovince, which is part of the Precambrian Canadian Shield. The development currently holds a total mineral resource estimate of 20.1 million tonnes at an average grade of 1.24 percent lithium oxide, including an indicated resource of 10 million tonnes grading 1.33 percent.
The chosen development option for Root results in a rise in net present value US$668 million, up 22 percent compared to its December 2023 PEA.
However, the NPV is lower during the early processing years due to the PEA using more conservative pricing assumptions for SC5.5, which is spodumene concentrate containing 5.5 percent lithium oxide. The payback period has also been extended for this reason and is now estimated at three years.
According to Green Technology Metals, funding amounting to US$330 million is needed to achieve the potential mine development outcomes indicated in the project’s PEA, which it says it has a "reasonable basis" to believe it can achieve this with its staged funding strategy.
Green Technology Metals currently has a growing lithium portfolio in Ontario, including the Seymour and Junior projects, which are in close proximity to each other. The company is currently advancing Seymour towards production, and construction is expected to begin in 2026 with first spodumene concentrate is expected in 2027.
The company is also planning a lithium conversion facility within its projects’ vicinity in Thunder Bay, to which Root would provide feedstock.
Following the PEA, the company's focus at Root will now be advancing permitting and consultation activities alongside a pre-feasibility study. If it enters operation, Root is expected to produce 213,000 dry tonnes of SC5.5 spodumene annually.
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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