Primed to become a leading lithium producer in Saskatchewan, EMP Metals (EMPS.c EMPPF) is exploring and developing lithium brine assets, helping to address domestic critical element supply chains.
With a strategic investment of $7.3 million from Tembo Capital, a London-based mining-focused private equity fund, and a partnership with Koch Industries, the second largest privately held US corporation, EMPS stands out as the first and only Canadian company that Koch has partnered with.
Key Project Areas and Resources
- Key Project: Hub City Lithium (HCL) Joint Venture (EMP Metals 75%, ROK Resources 25%).
- Land Holdings: 81,000 hectares (~200,000 acres) across three key project areas.
- Viewfield Area: Tested up to 259 mg/L lithium, the highest concentration in Canada.
- Inferred resource: 1.2 million tonnes of lithium carbonate equivalent (LCE) at 148 mg/L.
- Location: Saskatchewan is the 3rd most attractive jurisdiction worldwide and first in Canada.
Resource Assessment
- Mansur Area NI 43-101: Inferred resource of 399,364 tonnes LCE at 143.4 mg/L.
- Viewfield Area NI 43-101: Inferred resource of 747,526 tonnes LCE at 143.4 mg/L.
Direct Lithium Extraction Technology Strategy
- Advanced testing with Energy Source Minerals (ESM) and Koch Technology Solutions (KTS).
- High lithium recovery rates with significant impurity rejection.
Planned Production:
- Annual Production Target: 12,175 tonnes of LCE.
- Multi-phase expansion to produce up to 18,860 tonnes/year in the first 7 years.
- Stage 1: Modular 3,000 tonne/year battery-grade lithium carbonate refinery.
Financial Projections
- Project Life: 23.2 years.
- Capital Costs: US$571 million total, including contingencies.
- Operating Costs: US$40 million annually.
- Revenue Projections: Average selling price of US$20,000/tonne LCE.
Financial Metrics:
- Pre-tax NPV: US$1.493 billion (8% discount).
- Pre-tax IRR: 55%.
- Payback Period: 2.1 years.
Future Plans
- Ongoing Evaluation: Continue resource drilling and evaluation in the Viewfield and Mansur areas.
- Field Pilot Plant: Commissioning a 4-month pilot plant in the Viewfield area by Q1 2024.
- FEED Study: Front End Engineering & Design for a brine-to-battery-grade lithium carbonate refinery.
With significant land holdings and promising resource assessments, EMP Metals is strategically positioned to become a leading lithium producer in Saskatchewan. By leveraging advanced direct lithium extraction technologies and a robust financial plan, the company is set to achieve substantial production and revenue growth.