VANCOUVER, BC / ACCESSWIRE / December 8, 2021 / Noram Lithium Corp. ("Noram" or the "Company") (TSX - Venture: NRM / Frankfurt:N7R / OTCQB:NRVTF) today announced the summary results of a National Instrument 43-101 compliant Preliminary Economic Assessment ("PEA") for the high-grade lithium deposit at its wholly-owned Zeus Lithium Project ("Zeus" or the "Project") located less than 1 mile from Albermarle's Silver Peak Mine, which is currently the only lithium production facility in the United States. The PEA was prepared by ABH Engineering ("ABH",) an independent engineering services firm with extensive experience in mining and mineral processing. All dollar values are in US dollars.
PEA Highlights
- Robust Economics.
- $1.299 Billion Net Present Value ("NPV"). Base case after-tax Net Present Value ("NPV") of $1.299 billion (8% discount rate).
- 31% Internal Rate of Return ("IRR"). Base case after-tax IRR of 31%.
- Capital Costs("CAPEX"). Estimated initial CAPEX of $528M with after-tax payback period of 3.23 years.
- Gross Revenue of $303.4 Million/year
- Low Operating Cost. Operating Cost ("OPEX") of $3,355.30/tonne Lithium Carbonate Equivalent ("LCE") with a break-even price of $4016.6/tonne LCE LOM.
- Long Mine Life ("LOM). The mine production rate during full operation is set at 17,000 tpd. The production schedule uses ore from the first 11 phases, which results in 40-year mine life ("LOM"). The mine production schedule results in 245.4 million tonnes averaging 1,093 ppm Li.
- Very Low Strip Ratio. Mining strip ratios are very low, averaging 0.07:1 for LOM. Mining consists of a truck and shovel method, with blasting being unnecessary due to the ore softness.
- Low Environmental Impact. The leaching and filtration flowsheet includes dry stack tailings, thus, eliminating the environmental risk and long-term management issues associated with tailings ponds.
- LCE market Price. Base case market price of $9500/tonne LCE is well below long term forecasted rate of $14,000/tonne[1].
- Price Sensitivity. As noted in the sensitivity chart below, the after-tax NPV reaches$2.665 billion at $14,250/Tonne LCE (8% discount rate).
"We are thrilled with the results of this PEA," stated Sandy MacDougall, Noram's Chief Executive Officer and Director. "This study represents the most significant milestone to date for Noram and establishes us among limited peers as the newest low cost, high-grade, near-term lithium producer in North America. I am very pleased with what our team has achieved quickly, on schedule, and at the opportune time considering current and forecasted demand for Lithium Carbonate. This initial economic assessment is the most significant step to date towards our goal of lithium production and provides the market with a benchmark to evaluate our project's viability and value compared with other lithium developers. We are excited as we enter 2022 pushing aggressively towards the completion of a Pre-Feasibility Study."
About Noram Lithium Corp.
Noram Lithium Corp (TSX - Venture: NRM / Frankfurt: N7R / OTCQB: NRVTF) is a Canadian based junior exploration company, with a goal of developing lithium deposits and becoming a low - cost supplier. The Company's primary business is the Zeus Lithium Project ("Zeus") in Clayton Valley, Nevada. The Zeus Project has a recently updated resource estimate of 363 million tonnes at 923 ppm lithium measured + indicated resources, and 827 million tonnes lithium at 884 ppm lithium inferred resources (400 ppm Li cut-off).
Noram's long term strategy is to build a multi-national lithium minerals company to produce and sell lithium into the markets of North America, Europe, and Asia.
Please visit our web site for further information: www.noramlithiumcorp.com.
https://www.accesswire.com/676501/Noram-Lithium-Corp-Zeus-PEA-shows-31-After-Tax-IRR-USD1299-Billion-After-Tax-NPV