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MONTREAL, March 27, 2019 (GLOBE NEWSWIRE) -- Critical Elements Corporation (the “Corporation” or “Critical Elements”) (TSX-V: CRE) (US OTCQX: CRECF) (FSE: F12) is pleased to announce an additional significant step forward in becoming a significant lithium producer by awarding Primero Group (“Primero”) with the Early Contractor Involvement contract (the “ECI”) for the Rose Lithium-Tantalum project. Primero Group is an industry leader in the assessment and development of global mineral processing projects.
“Primero is looking forward to working with the Critical Elements team on the development of the Rose project in Northern Quebec. The award of this work demonstrates the growing capacity and capability of Primero ‘s North American team and also confirms our reputation as a prominent leader in hard rock Lithium projects”, stated Cameron Henry, managing director of Primero Group.
“We are very excited to award the ECI contract to Primero, an industry leader in the engineering and construction of spodumene processing plants as evidenced by their quality and efficient construction of Tawana Resources’ Bald Hill mine as well as their involvement in projects successfully developed by Pilbara Minerals, Galaxy Resources and Altura Mining. With our recent announcement that the Impact Assessment Statement for the Rose Lithium-Tantalum Project has been deemed complete by the Canadian Environmental Assessment Agency and continued interest in our strategic partner process, Critical Elements is on track in its permitting and project development timelines”, stated Jean-Sébastien Lavallée, Chairman & CEO of Critical Elements.
A summary of the recommended ECI approach is included below:
The following includes some of the many benefits to approaching project delivery in this manner:
Jean-Sebastien Lavallée (OGQ #773), geologist, shareholder, Chairman & CEO of the Corporation and a Qualified Person under NI 43-101, has reviewed and approved the technical content of this release.
About Critical Elements Corporation
The Corporation recently released a feasibility study for Critical Elements’ wholly-owned Rose Lithium Tantalum project (Rose Lithium-Tantalum project feasibility study, WSP, October 20, 2017), which is based on price forecasts of US $750/tonne for chemical-grade lithium concentrate (5% Li2O), US $1,500/tonne for technical-grade lithium concentrate (6% Li2O) and US $130/kg for Ta2O5 in tantalite concentrate, and an exchange rate of US $0.75/CA $. The internal rate of return (“IRR”) for the Rose Lithium-Tantalum project is estimated at 34.9% after tax, and net present value (“NPV”) is estimated at CA $726 million at an 8% discount rate. The estimated payback period is 2.8 years. The pre-tax IRR for the Rose Lithium-Tantalum Project is estimated at 48.2% and the pre-tax NPV at CA $1,257 million at an 8% discount rate (see press release dated September 6, 2017). The financial analysis is based on the Indicated mineral resource. An Indicated mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The life-of-mine (LOM) plan provides for the extraction of 26.8 million tonnes of ore, 182.4 million tonnes of waste, and 11.0 million tonnes of overburden for a total of 220.2 million tonnes of material. The average stripping ratio is 7.2 tonnes per tonne of ore. The nominal production rate is estimated at 4,600 tonnes per day, with 350 operating days per year. The open pit mining schedule allows for a 17-year mine life. The mine will produce a total of 26.8 million tonnes of ore grading an average of 0.85% Li2O and 133 ppm Ta2O5, including dilution. The mill will process 1.61 million tonnes of ore per year to produce an annual average of 236,532 tonnes of technical and chemical-grade spodumene concentrate and 429 tonnes of tantalite concentrate.
About Primero Group
Primero provides engineering design, construction and operational services to the minerals, energy and infrastructure sectors. Primero has specialist expertise in project implementation and delivery with a complementary service offering comprising civil, structural, mechanical and electrical solutions. Primero provides these services to a diverse client base, ranging from mid-sized companies through to international mining and energy houses.
FOR MORE INFORMATION:
Jean-Sébastien Lavallée, P.Geo.
Chief Executive Officer
819-354-5146
jslavallee@cecorp.ca
www.cecorp.ca
Investor Relations:
Paradox Public Relations
514-341-0408
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