MONTREAL, QUEBEC--(Marketwired - May 14, 2014) -Critical Elements Corporation (TSX VENTURE:CRE)(OTCQX:CRECF) (FRANKFURT:F12) is pleased to announce that it has started shipping samples of lithium concentrate to a number of users for analysis and validation of the product specifications. The concentrate samples have a low iron content, which is specifically required by certain users. Validation of the Rose project material by some of the largest consumers of lithium concentrate with low iron content is part of the process of setting up long-term off-take contracts.
Concurrently, the Critical Elements Corporation team will launch a program over the coming months to produce a number of lithium carbonate samples. These samples will be shipped to battery manufacturers that the Company met with in the past year, for specification analysis and validation.
The Critical Elements Corporation team is also pursuing discussions with a number of potential users of lithium carbonate and tantalum with the goal of entering into long-term sales contracts.
Critical Elements is also pleased to announce that its President & CEO, Jean-Sébastien Lavallée, has been invited to speak at the 6th Lithium Supply & Markets Conference in Montréal on May 20-22, 2014, hosted by Industrial Minerals.
About Critical Elements Corporation
Critical Elements is actively developing its 100%-owned Rose lithium-tantalum flagship project located in Quebec.
A recent financial analysis of the Rose project based on price forecasts of US$260/kg ($118/lb) for Ta2O5contained in a tantalite concentrate and US$6,000/t for lithium carbonate (Li2CO3) showed an estimated after-tax Internal Rate of Return (IRR) of 25% for the Rose project, with an estimated Net Present Value (NPV) of CA$279 million at an 8% discount rate. The payback period is estimated at 4.1 years. The pre-tax IRR is estimated at 33% and the NPV at $488 million at a discount rate of 8%. (Mineral resources that are not mineral reserves and do not have demonstrated economic viability). (See press release dated November 21, 2011.)
The operation is scheduled to produce 26,606 tons of high purity (99.9% battery grade) Li2CO3 and 206,670 pounds of Ta2O5 per year over a 17-year mine life.
The project hosts a current NI 43-101-compliant Indicated resource of26.5 million tonnes of 1.30% Li2O Eq. or 0.98% Li2O and 163 ppm Ta2O5and an Inferred resource of 10.7 million tonnes of 1.14% Li2O Eq. or 0.86% Li2O and 145 ppm Ta2O5.