Frontier Lithium Inc. (TSXV: FL) (OTCQB: LITOF) (FSE: HL2) (“Frontier” or “the Firm”) is happy to launch the robust outcomes of a Preliminary Financial Evaluation (“PEA”) for a proposed mine-to-lithium hydroxide chemical/hydromet plant facility (“Built-in Mission”) within the Nice Lakes Area of North America. The totally Built-in Mission PEA assumes a hydromet plant that may convert spodumene focus feedstock sourced from open-pit mining and a milling facility on the Firm’s PAK Lithium Mission, positioned north of Purple Lake, Ontario.
- Lifetime of Mission Income of $8.52 billion over 26-year whole venture life;
- Whole preliminary capital expenditure estimate of $685 million with a contingency of twenty-two.5% included.
- Sustaining Capital of $117 million;
- Pre-tax Internet Current Worth at an 8% base case low cost fee (“NPV8”) of $1.62 billion and Inner Price of Return (“IRR”) of 27%;
- Publish-tax internet “undiscounted” Money Circulation (earlier than preliminary capital expenditures) of $3.75 billion;
- Publish-tax NPV8 of $974.6 million and IRR of 21%;
- Annual Common EBITDA (steady-state) of $225 million.
- Chemical plant producing 23,174 tonnes of battery-quality Lithium Hydroxide Monohydrate (LiOH-H2O) per yr with a median promoting value of $13,500 per tonne. A whole of 556,200 tonnes of LiOH has been contemplated being produced from open pit mining solely on the PAK and Spark deposits; underground constrained mineral assets accessible on the PAK deposit for future consideration.
- PAK and Spark deposits are open in all instructions and will present potential useful resource enlargement for a newly commenced Preliminary Feasibility Research (“PFS”);
- All-in working money prices of $4,083 per tonne of LiOH; and
- After-Tax Pay Again of Capital Expenditures is 4.5 years after the beginning of economic operations.
“The totally Built-in Mission PEA demonstrates the financial and strategic advantages of growing lithium chemical manufacturing of lithium hydroxide within the Nice Lakes Area of North America, with expert labour, distinctive infrastructure, low carbon sources of vitality, prime intermodal transportation entry and low working prices.” said Trevor Walker, President & CEO of Frontier Lithium. “With PEA completion, Frontier will advance the Built-in Mission to a PFS degree and proceed to advance the high-grade PAK Lithium Mission useful resource towards the purpose of manufacturing of premium lithium chemical substances. Underpinning the PFS would be the present drilling on the PAK Lithium Mission and ongoing operations of the Firm’s mini-pilot plant testing our proprietary Lithium Hydroxide manufacturing course of. As western automotive corporations quickly electrify their product lineups, we count on very robust demand for regionally sourced premium lithium chemical substances provide, and the Nice Lakes area is the prime location as it’s the largest auto manufacturing hub on the continent.”
(All Tables are in $USD except in any other case said)
Desk 1: Abstract of PAK Mission PEA Economics
Mission Economics | |
Pre-Tax | |
NPV8 | $1.62 Billion (“B”) |
IRR | 27% |
Cumulative Money Circulation | $5.26 B |
Annual Common EBITDA (steady-state) | $225 Million (“M”) |
Publish-Tax | |
NPV8 | $974.6 M |
IRR | 21% |
Cumulative Money Circulation | $3.51 B |
Desk 2: Abstract of PAK Mission PEA Financial Assumptions
Financial Assumptions and Parameters | |
Alternate Price ($USD/$CAD) | $0.78 |
Low cost Price (base case) | 8% |
Technical Grade Focus (7.2% Li2O) | $1,600/tonne |
Chemical Grade Focus (6.0% Li2O) | $750/tonne |
Lithium Hydroxide Monohydrate_Battery Grade | $13,500/tonne |
Desk 3: Abstract of PAK Mission PEA Manufacturing Profile
Manufacturing Profile | |
Whole Mission Life (LOM) | 26 Years |
Mine and Concentrator | |
Whole Tonnes Milled | 22,914,500 |
Diluted Head Grade | 1.46% Li2O |
Common Stripping Ratio (W:O) | 3.6 |
Every day mill business throughput | 2,900 t/d |
Common Lithium Restoration (mill) | 83.9% |
Whole CG Manufacturing (6.0% Li2O) | 4,076,600 tonnes |
Whole TG Manufacturing (7.2% Li2O) | 525,700 tonnes |
Hydromet Plant | |
Yearly chemical plant throughput | 160,000 tonnes |
Lithium Restoration | 85% |
Whole battery grade Lithium Hydroxide (LiOH) | 556,200 tonnes |
Desk 4: Abstract of PAK Mission PEA Working Prices
Working Prices | $/t processed |
Mine and Concentrator | |
Direct Open Pit Mining Price | 3.48 |
Direct Processing Price | 17.82 |
Avg. Spodumene Conc. Manufacturing Price (EXW hydromet plant) | 313 |
Hydromet Plant | |
Common Processing Price | 1,785 |
Lithium Restoration | 85% |
Whole Lithium Hydroxide Manufacturing Money Price (EXW plant) | 4,083 |
Desk 5: Abstract of PAK Mission PEA Capital
Capital Necessities | $ Million |
EPCM | 41.3 |
Contingency | 111.4 |
Mine and Mill | |
Web site Preparation/Infrastructure | 41.4 |
Mill Processing and Storage | 100.3 |
Energy Distribution | 6.2 |
Open Pit Tools | 16.6 |
Water therapy and waste administration | 4.2 |
Chemical Plant | |
Civil/Structural | 103.9 |
Hydromet Processing | 168.8 |
Utilities/Aux. & Providers | 90.9 |
Whole Pre-Manufacturing Capital Price | 684.9 |
Whole Sustaining Capital Price | 117.1 |
Cautionary Statements
The totally Built-in Mission PEA referred to on this announcement has been undertaken to find out the potential viability of the built-in venture comprising a mine/concentrator and chemical plant in northern Ontario and to achieve a call to proceed with extra definitive research. This PEA is preliminary in nature, contains inferred mineral assets which can be thought-about too geologically speculative to have the financial issues utilized to them that may allow them to be categorized as mineral reserves. There isn’t a certainty the PAK Lithium Mission outlined by the PEA can be realized. The Firm has concluded it has an affordable foundation for offering the forward-looking statements included on this announcement and believes that it has an affordable foundation to count on will probably be in a position to fund the event of the Built-in Mission. Given the uncertainties concerned, buyers mustn’t make any funding selections based mostly solely on the outcomes of the PEA.
Mining and Milling
A preliminary built-in web site plan together with mining operations, waste disposal, and concentrator was thought-about and developed for the aim of the PEA. The PEA research outlines two open pits on the mine, one on the PAK deposit and one on the Spark deposit. The PAK deposit comprises a pit constrained mineral useful resource within the measured and indicated classes of 5.4 million tonnes averaging 1.99% Li2O and a pit constrained inferred mineral useful resource of 0.60 million tonnes averaging 1.97% Li2O that hosts a uncommon technical/ceramic grade spodumene with low inherent iron (beneath 0.1% Fe2O3). The Spark deposit is positioned solely 2km northwest of the PAK deposit and comprises a pit constrained mineral useful resource estimate of three.3 million tonnes averaging 1.59% Li2O within the indicated class and a pit constrained mineral useful resource of 15.7 million tonnes averaging 1.31% Li2O within the inferred class. Underneath the PEA, the open pits focused manufacturing leads to an anticipated stripping ratio of three.6 to 1. The open pits can be mined utilizing a normal fleet of off-road mining vans and hydraulic excavators at a fee of roughly 2,900 tonnes of ore per day. The concentrator will course of the entire ore generated from mining operations. Frontier Lithium has filed with acceptable authorities for a mining lease which includes the mining and floor rights essential to mine the PAK and Spark deposits and embody the suitable space for a mining operation as outlined within the PEA. Frontier Lithium doesn’t have the required permits in place on the time of this launch to construct the venture as described within the PEA.
Chemical/Hydromet Plant
The hydromet plant PEA considers a lithium processing plant to be positioned on a Nice Lakes port and contains spodumene focus receiving and storage services, reagent receiving and storage services, course of services and web site infrastructure. For the aim of the PEA the chemical plant flowsheet incorporates so far as sensible ‘typical’ or proven-in-operation, tools, and course of phases, in an effort to decrease course of, expertise and tools threat. The hydromet plant is designed to provide 23,174 tonnes per yr of battery grade lithium hydroxide monohydrate (approx. 20,400 t/yr of lithium carbonate equal “LCE”).
Mineral Useful resource Estimate
A abstract of the Mineral Useful resource Estimate for Spark is about out in Desk 6. The Mineral Useful resource Estimate for PAK is summarized in Tables 7 and eight.
Desk 6: Spark Mineral Useful resource Calculation (Up to date 2021)
Lower-Off | Useful resource Classification |
Tonnes (t) | Li2O (%) | Ta2O5 (ppm) | Contained
Li2O (t) |
0.60% Li2O |
Indicated | 3,261,000 | 1.59 | 123 | 52,000 |
Inferred | 15,718,000 | 1.31 | 108 | 206,000 |
Desk 7: PAK Open Pit Mineral Useful resource Calculation (Up to date 2021)
Lower- off |
Useful resource Class |
Commodity | Geologic Zone | Tonnes (t) | Li2O (%) |
Ta2O5 (ppm) |
Contained Li2O (t) |
0.6% Li2O | Measured | Lithium | UIZ (1) | 325,200 | 3.43 | 59 | 11,154 |
Lithium | LIZ (2) | 1,019,400 | 1.73 | 105 | 17,636 | ||
Lithium | Whole Lithium Zone | 1,344,600 | 2.14 | 94 | 28,790 | ||
Lithium / Tantalum | Bulk Pegmatite | 1,344,600 | 2.14 | 94 | 28,790 | ||
0.6% Li2O | Indicated | Lithium | UIZ | 255,400 | 2.91 | 75 | 7,432 |
Lithium | LIZ | 3,819,900 | 1.88 | 99 | 71,814 | ||
Lithium | Whole Lithium Zone | 4,075,300 | 1.94 | 97 | 79,246 | ||
Tantalum | CIZ (3) | 544,100 | 1.11 | 113 | n/a | ||
Lithium / Tantalum | Bulk Pegmatite | 4,619,400 | 1.72 | 99 | 79,246 | ||
0.6% Li2O | Measured + Indicated | Lithium | UIZ | 580,600 | 3.20 | 65 | 18,587 |
Lithium | LIZ | 4,839,300 | 1.85 | 100 | 89,450 | ||
Lithium | Whole Lithium Zone | 5,419,900 | 1.99 | 96 | 108,036 | ||
Tantalum | (CIZ) | 544,100 | 1.11 | 113 | n/a | ||
Lithium / Tantalum | Bulk Pegmatite | 5,964,000 | 1.81 | 98 | 108,036 | ||
0.6% Li2O | Inferred | Lithium | (UIZ) | 74,200 | 2.77 | 96 | 2,055 |
Lithium | (LIZ) | 528,900 | 1.86 | 79 | 9,838 | ||
Lithium | Whole Lithium Zone | 603,100 | 1.97 | 81 | 11,893 | ||
Tantalum | (CIZ) | 77,400 | 1.21 | 153 | n/a | ||
Lithium / Tantalum | Bulk Pegmatite | 680,500 | 1.75 | 89 | 11,893 |
Desk 8: PAK Underground Mineral Useful resource Calculation (Up to date 2021)
Lower- off |
Useful resource Class |
Commodity | Geologic Zone | Tonnes (t) | Li2O (%) |
Ta2O5 (ppm) |
Contained Li2O (t) |
0.8% Li2O | Measured | Lithium | UIZ | 0 | – | – | 0 |
Lithium | LIZ | 0 | – | – | 0 | ||
Lithium | Whole Lithium Zone | 0 | – | – | 0 | ||
Lithium / Tantalum / Rubidium | Bulk Pegmatite | 0 | – | – | 0 | ||
0.8% Li2O | Indicated | Lithium | UIZ | 0 | – | – | 0 |
Lithium | LIZ | 1,261,700 | 2.15 | 91 | 27,127 | ||
Lithium | Whole Lithium Zone | 1,261,700 | 2.15 | 91 | 27,127 | ||
Tantalum / Rubidium | CIZ | 3,830 | 1.16 | 14 | n/a | ||
Lithium / Tantalum / Rubidium | Bulk Pegmatite | 1,265,530 | 2.14 | 91 | 27,127 | ||
0.8% Li2O | Measured + Indicated | Lithium | UIZ | 0 | – | – | 0 |
Lithium | LIZ | 1,261,700 | 2.15 | 91 | 27,127 | ||
Lithium | Whole Lithium Zone | 1,261,700 | 2.15 | 91 | 27,127 | ||
Tantalum / Rubidium | CIZ | 3,830 | 1.16 | 143 | n/a | ||
Lithium / Tantalum / Rubidium | Bulk Pegmatite | 1,265,530 | 2.14 | 91 | 27,127 | ||
0.8% Li2O | Inferred | Lithium | UIZ | 27,450 | 4.35 | 31 | 1,194 |
Lithium | LIZ | 2,043,400 | 2.35 | 73 | 48,020 | ||
Lithium | Whole Lithium Zone | 2,070,850 | 2.38 | 72 | 49,214 | ||
Tantalum /Rubidium | CIZ | 6,900 | 2.03 | 146 | n/a | ||
Lithium / Tantalum / Rubidium | Bulk Pegmatite | 2,077,750 | 2.37 | 73 | 49,214 |
(1) | Higher Intermediate Zone |
(2) | Decrease Intermediate Zone |
(3) | Central Intermediate Zone |
Mineral Useful resource Estimate Notes
1. | Mineral Assets have been ready in accordance with NI 43-101 and CIM Definition Requirements (2014). Minerals Assets that aren’t Mineral Reserves wouldn’t have demonstrated financial viability. This estimate of Minerals Assets could also be materially affected by environmental, allowing, authorized, title, taxation, sociopolitical, advertising and different points. |
2. | Open Pit Mineral Assets are reported at a cut-off of 0.60% Li2O. Underground Mineral Assets are reported at a cut-off of 0.80% Li2O. |
3. | Applicable mining prices, processing prices, metals recoveries and inter ramp pit slope angles have been used to generate pit shells. |
4. | Applicable mining prices, processing prices, metals recoveries and mining shapes have been used to generate underground mineral assets |
5. | Rounding could end in obvious summation variations between tonnes, grades and contained metals content material |
6. | Tonnage and grades measurements are in metric items |
7. | Contributing assay composites at Spark have been capped at 3.55% Li2O. At PAK, composite assays have been capped at 4.40 % Li2O within the CIZ, 4.18% Li2O within the LIZ and 4.95% Li2O within the UIZ. |
8. | A particular gravity of two.718 was utilized to the pegmatite at Spark based mostly on 241 measurements. The precise gravity at PAK differ from 2.66 to 2.86 relying on the pegmatite area. |
9. | Modeling at Spark was carried out utilizing GEOVIA Surpac 2019 software program with grades estimated utilizing bizarre kriging (OK) interpolation methodology. Samples have been composited at 1.0 meter down gap. Block grades have been estimated on a multi cross foundation with a minimal and most variety of composites required for every estimation cross. Block measurement is 2 metre * by 2 metre (y) by 2 metre (z). |
10. | Modeling at PAK was carried out utilizing GEOVIA Surpac 2019 software program with grades estimated utilizing bizarre kriging (OK) interpolation methodology. Samples have been composited at 1.0 meter down gap. Block grades have been estimated on a multi cross foundation with a minimal and most variety of composites required for every estimation cross. Block measurement is 2.5 metre * by 2.5 metre (y) by 2.5 metre (z). |
High quality Assurance and High quality Management
Underneath Frontier’s QA/QC procedures, all drilling was accomplished by Chenier Drilling Ltd. of Val Caron, ON utilizing thin-walled BTW drill rods (4.2 cm core diameter) and a Reflex ACT III oriented core system. Utilizing the Reflex system, the drill core was oriented and marked because it was retrieved on the drill. The core was boxed and delivered to the Frontier core shack the place it was examined, geologically logged and marked for sampling. The core was photographed previous to sampling. Utilizing a rock noticed, the marked pattern intervals have been halved with one halve bagged for evaluation. Pattern blanks together with lithium, rubidium and cesium licensed reference materials was routinely inserted into the pattern stream in accordance with trade really useful practices. Discipline duplicate samples have been additionally taken in accordance with trade really useful practices. The samples have been positioned in poly pattern luggage and transported to Purple Lake by Frontier staff after which shipped to AGAT Laboratories Ltd. (AGAT) in Mississauga, ON for quantitative multi-element evaluation. AGAT is an ISO accredited laboratory. All petrographic pattern preparation and electron microprobe (EMP) evaluation was accomplished on the Queen’s Facility for Isotope Analysis (QFIR) at Queen’s College in Kingston, Ontario underneath the direct supervision of Dr. Steve Beyer. The core is saved on web site on the Pakeagama Lake exploration camp.
Certified Individuals
The Mineral Assets for PAK Lithium Mission disclosed on this information launch have been estimated by Mr. Todd McCracken, P. Geo., an worker of BBA Engineering Ltd. and impartial of Frontier. By advantage of his training and related expertise, Mr. McCracken is “Certified Particular person” for the aim of Nationwide Instrument 43-101. The mineral useful resource has been categorized in accordance with CIM Definition Requirements for mineral assets and mineral reserves, (November 2014). Mr. McCracken, P. Geo., has learn and permitted the contents of this press launch because it pertains to the disclosed Mineral Useful resource estimate and monetary mannequin. The Nationwide Instrument 43-101 PEA report can be filed on SEDAR (www.sedar.com) inside 45 days.
BBA Engineering Ltd. is a Canadian consulting engineering agency specialised in energy, mining and metals, biofuels, oil and gasoline.
Johnny Canosa P.Eng., Sr. Mining Engineer for JAC Mining Consultants is an impartial Certified Particular person as outlined by NI 43-101 and has reviewed and permitted the contents of this information launch. Mr. Canosa is accountable for open pit mine planning, scheduling working and capital prices associated to mining and floor infrastructure.
Kurt Boyko, P.Eng., Consulting Specialist – Mechanical for Nordmin Engineering Ltd., is an impartial Certified Particular person as outlined by NI 43-101 and has reviewed and permitted the contents of this information launch. Mr. Boyko is accountable for course of plant design, chemical plant design and working and capital price estimates associated to the processing services.
Steve Wilson, P.Eng., Course of Engineer – Wil-Remedy Consulting Providers, is an impartial Certified Particular person as outlined by NI 43-101 and has reviewed and permitted the contents of this information launch. Mr. Wilson is accountable for mineral processing and metallurgical testing.
Evaluation of Technical Info
Garth Drever, P. Geo, Vice President Exploration for Frontier Lithium Inc. is a Certified Particular person as outlined by NI 43-101 and has reviewed and permitted the contents of this information launch. Mr. Drever has been concerned with all features of the PAK Lithium venture since 2013.
About Frontier Lithium Inc.
Frontier Lithium (TSX.V: FL) (OTCQB: LITOF) (FSE: HL2) is a Sudbury Ontario based mostly, publicly listed, junior mining firm with the biggest land place in an rising premium lithium mineral district positioned within the Nice Lakes area of northern Ontario. The corporate maintains 100% curiosity within the PAK Lithium Mission which comprises one in all North America’s highest-grade, massive tonnage hard-rock lithium assets within the type of a uncommon low-iron spodumene. The Mission has vital upside exploration potential. Frontier is a pre-production enterprise that’s concentrating on the manufacturing of battery high quality lithium hydroxide within the Nice Lakes Area to help electrical automobile and battery provide chains in North America. Frontier maintains a good share construction with administration possession roughly 30% of the Firm.
Concerning the PAK Lithium Mission
The PAK Lithium Mission encompasses 26,774 hectares on the south finish of Ontario’s Electrical Avenue, the biggest land package deal internet hosting lithium bearing pegmatites in Ontario. The Mission covers 65 km of the Avenue size and stays largely unexplored; nonetheless, since 2013 the corporate has delineated two premium spodumene bearing lithium deposits positioned 2.3 km from one another on the southwestern finish of the venture. Just lately, Frontier confirmed the presence of spodumene with the Bolt pegmatite, between PAK and Spark deposits and the Pennock Lake pegmatite prevalence an extra 30 km alongside the Mission. Frontier’s premier Nice Lakes location is advantaged by favorable geology, confirmed metallurgy with entry to intermodal hubs, infrastructure, energy, and mining together with downstream lithium processing experience and auto OEM’s.
The PAK deposit hosts a uncommon “technical grade” spodumene sustaining low inherent iron ranges (beneath 0.1% Fe2O3) and comprises a pit constrained mineral useful resource within the measured and indicated classes of 5.4 million tonnes averaging 1.99% Li2O and a pit constrained inferred mineral useful resource of 0.60 million tonnes averaging 1.97% Li2O. The PAK deposit additionally comprises an underground constrained mineral useful resource within the measured and indicated classes of 1.3 million tonnes averaging 2.15% Li2O and an underground constrained mineral useful resource within the inferred class of two.1 million tonnes averaging 2.38% Li2O. The Spark deposit is positioned solely 2km northwest of the PAK deposit and comprises a pit constrained mineral useful resource estimate of three.3 million tonnes averaging 1.59% Li2O within the indicated class and a pit constrained mineral useful resource of 15.7 million tonnes averaging 1.31% Li2O within the inferred class., as per the preliminary outcomes supporting an upcoming NI 43-101 Technical Report, “2020 Preliminary Financial Evaluation, Totally Built-in PAK Lithium Mission” by BBA Engineering Ltd.
Ahead-looking Statements
Neither the TSX Enterprise Alternate nor its Regulation Providers Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Alternate) accepts duty for the adequacy or accuracy of this launch. This launch contains sure statements which may be deemed “forward-looking statements”. All statements on this launch, apart from statements of historic information, that handle future manufacturing, reserve potential, exploration drilling, exploitation actions and occasions or developments that the Firm expects are forward-looking statements. Though the Firm believes the expectations expressed in such forward-looking statements are based mostly on cheap assumptions, such statements usually are not ensures of future efficiency and precise outcomes or developments could differ materially from these within the forward-looking statements. Elements that might trigger precise outcomes to vary materially from these in ahead wanting statements embrace market costs, exploitation and exploration successes, continued availability of capital and financing, and basic financial, market or enterprise circumstances. Buyers are cautioned that any such statements usually are not ensures of future efficiency and people precise outcomes or developments could differ materially from these projected within the forward-looking statements. For extra info on the Firm, Buyers ought to evaluate the Firm’s registered filings what can be found at https://www.sedar.com
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