Noram Lithium President Peter Ball shared, "These numbers are spectacular for where we are. It's going to be an opportunity for shareholders."
“Looking at the metrics of our Zeus hybrid lithium project, we have enough tonnage to deliver lithium carbonate for 40 years in the PEA, and there are enough resources for 195 years," Ball said. "So if you start doing the math of what the numbers look like at US$9,500 per tonne, the NPV at a discount rate of 8 percent is US$1.3 billion ... (and) the internal rate of return is 31 percent. We will be able to produce it at US$3,355 per tonne, which is really one tenth of what it's trading at. The gross revenue of the 40 year project at US$9,500 is US$12.2 billion. These numbers are spectacular for where we are. It's going to be a big opportunity for shareholders. We have a big year ahead of us."
According to Ball, the company is looking to produce lithium, which Ball calls "white gold," at a grade of 1,093 parts per million.
“If you look at the price of lithium, and you calculate back, this is about US$55 to US$60 per tonne rock, which is about a gram of gold. So, if you take our 363 million tonnes in the measured and indicated category, this nearly equates to 10 or 12 million ounces of gold, that we're going to be able to extract for US$16 per tonne. It's all about who can get the stuff out of the ground, the cheapest.”
The new resource estimate resulted from the Phase V drill program on the Zeus lithium claystone property located within 2 kilometers of Albemarle’s Silver Peak lithium mine in Clayton Valley, Nevada. The company announced a 70 percent increase in measured and indicated resources and a 369 percent increase in inferred resources.
"We'll be starting our next year putting forward a PFS and getting a pilot plant, doing a little more drilling to upgrade the resource and even bigger than what we have,” Ball said.
Watch the full interview of Noram Lithium President Peter Ball above.
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