Desert Lion Releases PEA for Namibian Lithium Project

Desert Lion Energy (TSXV:DLI) has released the results of the preliminary economic assessment (PEA) for its Namibian lithium project, which covers mining, concentrate and lithium carbonate production.

Highlights are as follows:

• Cash cost of lithium carbonate of US$4,080/tonne and lepidolite (lithium) concentrate of US$141/tonne, in each case including byproduct credits

• Initial direct capital costs of US$275 million for mine, concentrator and lithium carbonate conversion plant, including by-product circuits (including a contingency of US$43 million (15%))

• Low capital intensity for lithium carbonate of $13,750/annual tonne of production of battery grade lithium carbonate

• US$144 million pre-tax NPV (8 percent discount rate)

• 29 percent pre-tax internal rate of return

• Payback period of ~2.5 years

• Life of mine revenues of US$852 million

• Average sales price of US$13,000 per tonne of lithium carbonate

Tim Johnston, Desert Lion CEO, commented:

“We are very pleased with the results of the Preliminary Economic Assessment which confirm management’s belief in the benefits associated with the Project’s at or near surface mineralization, proximity to high quality existing infrastructure and the low-cost operating environment in Namibia. The Preliminary Economic Assessment demonstrates the compelling economics of the Project, highlighted by low capital costs, low operating costs and high earnings.”

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