- Pre-tax US$1.5 Billion NPV8 and IRR of 45%
- Rainbow Lake Area has a long history of resource extraction, well established infrastructure, and supportive government
CALGARY, Alberta, Dec. 14, 2023 (GLOBE NEWSWIRE) -- Volt Lithium Corp. (TSXV: VLT) ("Volt" or the "Company") is pleased to announce the summary results from the Company’s Preliminary Economic Assessment (“PEA”) for the Rainbow Lake Lithium Project (the “Rainbow Lake Project”), a lithium brine project in northwest Alberta, Canada, where the Company owns lithium rights across 430,000 acres of land. The PEA outlines the estimated production scaling from 1,000 to over 23,000 metric tonnes per year of battery-grade lithium hydroxide monohydrate ("lithium hydroxide" or "LHM") over a 19-year period. Volt’s completed NI 43-101 PEA Technical Report is expected to be filed on SEDAR+ within 45 days.
All dollar values in this press release are stated in US dollars unless otherwise noted.
“We are very pleased with the results of the PEA” commented Alex Wylie, President & CEO of Volt. “Volt’s focus on extracting lithium from oilfield brines allows for significant project returns and economics that will allow Volt to grow its lithium production in a measured and responsible way.”
Rainbow Lake PEA Highlights1
- Production growing from 1,000 to over 23,000 metric tonnes per year (average over years 5 to 19) of battery grade LHM2 spanning a 19-year period;
- Pre-tax $1.5 Billion NPV at 8% discount rate (“NPV8") and IRR of 45%;
- After-tax $1.1 Billion NPV8 and IRR of 35%;
- Volt has entered into a capital expenditure recovery program and cost sharing arrangement with a private oil and gas company (the “E&PCo”), which is expected to allow Volt to significantly enhance overall project economics3;
- OPEX of approximately $3,276/tonne LHM in the Muskeg formation, with an average grade of 92 mg/L and approximately $4,545/tonne in the Keg River formation with an average grade of 49 mg/L; and
- Project economics assumed $25,000/tonne LHM and provides strong leverage to higher lithium prices.
_________________
1Readers are cautioned that reliance on information in this announcement without reference to the Technical Report may not be appropriate. The forthcoming Technical Report is meant to be read as a whole, and sections should not be read or relied upon out of context
2 23,000 metric tonnes lithium hydroxide monohydrate (“LHM”) is equivalent to 20,240 metric tonnes lithium carbonate equivalent (“LCE”)
3Volt’s cost sharing arrangement with the E&PCo treated as Other Revenue in the cash flow statement for the IRR Analysis