Post by
Tiger737373 on Aug 15, 2023 9:38pm
SIRMAC LITHIUM PROJECT ( PEA )
The PEA focuses on the lithium resource of the 5 Dike alone. We know there are multiple additional dikes, of which several are lithium-bearing, elsewere on the project which have yet to be drill-tested or fully explored. This offers us tredemendous blue sky upside potential and room for expension from an exploration perspective on the Sirmac project. Yves Rougerie, President & CEO
Sirmac - PEA Highlights
1) Pre-tax net present value ( NPV ) ( Discount rate 5% ) of CA $ 183.6 milliions, internal rate of return ( IRR ) of 839 % and payback less than 1 year.
2) After tax net present value ( NPV ) ( Discount rate 5 % ) of CA $ 104.8 millions, internal rate of return ( IRR ) of 484 % and payback less than 1 year.
3) Assumed DSO selling price of CA $ 797 per ton.
4) 4-year mine life wtih 321,000 tons od DSO at 1.33 %li2o
5) Revenue of CA $ 253 .4 millions
6) Life of Mine capital cost of CA $ 3.1 millions
7) Operation cost per ton of DSO at CA $ 142
Sirmac - 43-101 Highlights
1) The testing shows the Sirmac 5 pegmatite dyke is guitable to produce a spodumene concentrate grading 6 % Li2O and above. The test works show achievable recovery of 88 % with concentrate grade above 6 %.
2) The recommendation suggest to proceed with all required permit for the extraction of 50 milles tons bulk sample with high grade ( 1.82 Li20 ) ( top of the 5 Dyke )
3) Actually the company applied for a bulk sample of 50 000 tonnes as permitted by regulations in the mining law of Quebec, the demand is pending. This permit with reclamation plan are the first step to move the project foward to develop the DSO as the outcrop is already stripped and acces road is already done.
4) The reader must be informed that the Dyke 5 sector of the property is not affected by the proposed protection zone of the Caribous.
5 ) The Sirmac project has the potential to proceed in the short term with the objective of Direct Shipping which could benefit from higher current prices.
6 ) The company is in negotiation to sell the product locally in the form of direct shipping ores ( DSO ) and the discussions are stricly confidential and can not disclosed in the technical report. The client provided several information on different studies with various price range.
7 ) Based on the positive metallurgical testing ( details in section 13 of this report ) the resources at the Sirmac 5 pegmatite can be upgraded to 6% concentrate.
8) For this PEA study, contractors operation is used as a basis. It could be only one general contractor who would do the drill and blast, the muckingand the shipping to Chibougamau. A revised request for a proposal will be submitted at the next study stage to firm up the estimated costs and final method to provide the feed material to a Chibougamau pad area. GMG has used in-house costs and similar contrator proposal to establish the PEA costs. Vision Lithium got a budgetary quote from a mining contractor based in the province of Quebec working in that type of work with lithium.
9) The property is accessible via the Northern Road from Chibougamau. This road is a well maintained gravel road open throughout the year and accessible to heavy transport trucks. The property is located 32 kilometers down a secondary forestry road used for heavy logging truck transportation which can be accessed at kilometer 128 off the North Road. A Sopfeu Camp is located 20 kilometer as the crow flies west of the property. The 5 Dyke is easily accessible using recent network of logging gravel roads and ATV trails. A power line is located at the eastern edge of the property.
In conclusion, although the company has not yet received confirmation of the 50,000 tonne bulk permit, it has all the qualifications to obtain it and, from what I have heard on Bay Street, the permit will be issued in the near future. So, in my humble opinion, this little company will soon have the wind in its sails. Certainly more than 20 cents once the firts permit is issued.
Good Luck To All