TSXV:VLT - Post Discussion
Post by
MarketMakerss on Dec 14, 2023 6:11pm
Rainbow Lake PEA Summary
Highlighted by a 45% IRR and US$1.5B before-tax NPV8, VLT has announced the summary results from its preliminary economics assessment at its Rainbow Lake Project in Alberta.
The PEA outlines estimated production scaling from 1,000 to over 23,000 metric tonnes per year of battery-grade lithium hydroxide monohydrate over a 19-year period.
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Pre-tax $1.5B NPV at 8% discount rate and IRR of 45%
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After-tax $1.1B NPV8 and IRR of 35%
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OPEX of ~$3,276/tonne LHM in the Muskeg formation, with an average grade of 92 mg/L and ~$4,545/tonne in the Keg River formation with an average grade of 49 mg/L.
Additionally, VLT has entered into a capital expenditure recovery program and cost-sharing arrangement with a private oil and gas company, which is expected to allow VLT to significantly enhance overall project economics.
Providing strong leverage to higher lithium prices, the project economics assumed $25,000/tonne LHM.
VLT will be targeting production growth in three phases and will maintain an ongoing exploration program with the goal of targeting lithium production from brines in the formations offering the highest concentrations during the production ramp-up. :
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Phase 1: Production is targeted at 1,000 tonnes per annum (“tpa”) focused on the Muskeg formation with an average lithium grade of 92 mg/L.
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Phase 2: Volt intends to expand production to 5,000 tpa of LHM primarily focused on the Muskeg formation.
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Phase 3: Volt intends to expand production to an average of approximately 23,000 tpa of LHM focused on the Muskeg and Keg River formations.
VLT President & CEO Alex Wylie commented:
“We are very pleased with the results of the PEA" & “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.”
Spanning 430,000 acres of land, the Rainbow Lake Project is located in an area with a long history of resource extraction, well-established infrastructure and supportive government.
Posted on behalf of Volt Lithium Corp.
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