PEA Delivers Outstanding Project Economics for Battery-grade Lithium Carbonate Operation at Rincon Salar

 
• Preliminary Economic Assessment (PEA) confirms the Rincon salar’s potential to produce high-purity, battery-grade lithium carbonate
• PEA completed to Scoping Study-level delivers a robust, low�cost operation with US$194.8m annual revenue forecast over an initial 14-year operation
• Annual production of 7,061 tonnes high purity lithium carbonate based on existing JORC Mineral Resource of 292,564 tonne LCE. Strong expansion potential for future Mineral Resource upgrades
• Pre-tax NPV of US$501.82m with strong forecast margins, payback period of 3 years and pre-tax IRR of 42%
• Estimated capital expenditure of US$216.55 million, based on lithium carbonate plant utilising Direct Lithium Extraction (DLE) technology
• Power will now move into feasibility study phase for Rincon.

The PEA results provide initial formal confirmation of the Rincon salar’s excellent potential to become a significant long-life supplier of high purity, battery-grade lithium carbonate equivalent (LCE), producing 7,061 tonnes of LCE per annum over an initial project life of 14 years.

The PEA forecasts a pre-tax NPV of US$501.85 million, with payback period of 3 years, and pre-tax IRR of 42%.

The PEA is based on the recently reported JORC 2012 Mineral Resource at the Rincon salar, of 292,564 tonnes LCE (ASX announcements, 1 and 2 November 2023). Potential to further increase the production profile contemplated in the PEA may exist based on future Mineral Resource upgrades at Rincon.

The PEA was conducted to Scoping Study level by global engineering and mining consultant Golder Associates (Golder), a division of WSP Global. Golder worked in conjunction with Power’s Direct Lithium Extraction (DLE) partner Sunresin New Materials Co. Ltd (Sunresin) to deliver the PEA at Rincon. Golder has current, relevant experience working with tier-1 lithium-brine companies, including Ganfeng and Tibet Summit Resources, which are using Sunresin DLE technology.

The PEA assessed production and life-of-mine profile, along with engineering and process costs, plus capital costs and operating costs for a potential high-quality LCE producing operation at Rincon.

A detailed summary of the Rincon Salar PEA is appended to this announcement.

Key outcomes and parameters of the PEA are presented in Table 1 below.

Table 1: Rincon salar PEA key parameters and outcomes

See Figure 1 for conceptual location Plan for proposed Rincon DLE development and Figure 2 for Salta Lithium Project location map.

“We are extremely encouraged by the outcomes of this Preliminary Economic Assessment (PEA) for the Rincon salar, a priority development asset within our Salta Lithium Project in Argentina. The PEA provides initial formal confirmation of the technical and financial viability of the potential to develop Rincon into a new, long-life source of high purity lithium carbonate. The outcome of the PEA is outstanding validation of our demonstrated commitment to the rapid development of the Salta Lithium Project. Having commenced a major Resource expansion drilling campaign at Salta late last year, Power has delivered a substantial JORC Mineral Resource upgrade, and is now engaged in development-phase programs at its priority Rincon and Incahuasi salares.”

Power Minerals Managing Director Mena Habib

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