Critical Elements delivers Rose lithium feasibility study with US$1.9B after-tax NPV

Critical Elements (TSXV: CRE; OTC: CRECF) has delivered a new feasibility study on its wholly owned Rose lithium-tantalum project situated in the Eeyou-Istchee, James Bay region of Quebec, confirming the potential for a low-risk, reliable producer of high-quality lithium.

The study envisions a 17-year operation that will excavate a total of 26.3 million tonnes of ore grading 0.87% Li2O (lithium oxide) and 138 ppm Ta2O5 (tantalum pentoxide). These mineral reserves, all categorized as probable, are estimated from 17 mineralized zones on the Rose property.

Each year, the proposed mill will process 1.61 million tonnes of ore to produce an annual average of 224,686 tonnes of technical and chemical grade spodumene concentrates and 441 tonnes of tantalite concentrate, according to the study, which assumes that a simple open pit mining and conventional lithium processing technologies is used.

Bulk sampling for pilot plant work at the Rose project. Credit: Critical Elements Lithium Corp.

Over the life of mine, the pit will excavate a total of 182.4 million tonnes of waste rock and 10.9 million tonnes of overburden. The average strip ratio is 7.3 tonnes of waste per tonne of ore.

The report estimates the project's after-tax net present value at over US$1.9 billion (at 8% discount rate) with an internal rate of return of 82.4%. The initial capital cost is estimated at US$357 million. Variable costs include average operating costs of US$74.48 per tonne milled and US$540 per tonne concentrate (all concentrate production combined).

To reflect current market conditions, the feasibility used conservative spodumene concentrate prices, as well as capital and operating cost estimates (US$4,039 per tonne technical grade lithium concentrate, US$1,852 per tonne chemical grade lithium concentrate, and US$130 per kg tantalum pentoxide).

It is anticipated that construction of the mine will take about 21 months. The Rose property is currently accessible by road via the Route du Nord, usable all year round from Chibougamau, and is surrounded by existing mine operations and infrastructure. The project is located 80 km south of Newmont's ??l?(C)onore gold mine and 45 km northwest of Nemaska Lithium's Whabouchi lithium project, and is 20 km south of Hydro Qu?(C)bec's Eastmain 1 hydroelectricity generating plant.

The entire property covers over 246 sq. km of land, geologically located northeast end of the Archean Lake Superior Province of the Canadian Shield.