The state of affairs, it famous, additionally presents choices and suppleness to unlock the potential of Shaakichiuwaanaan to turn into a lithium uncooked supplies provider in North America. The asset, the most important identified lithium pegmatite mineral useful resource within the Americas, hosts huge spodumene crystals, which reinforces processing effectivity and restoration charges, Patriot stated.
The Vancouver-based miner famous the PEA incorporates a staged improvement technique, with Stage 1 requiring an estimated preliminary internet capital expenditure (capex) of C$640 million (round $470m).
This primary part lays the groundwork for manufacturing, adopted by a Stage 2 enlargement aimed toward doubling output to 800,000 tonnes of spodumene focus per yr. The estimated internet capex for the Stage 2 enlargement is C$408 million ($300m).
The mixed internet price to succeed in nameplate manufacturing for each Stage 1 and Stage 2 is estimated at round C$608 million ($447m), contemplating money flows from Stage 1 and proposed tax credit, Patriot stated.
Upon completion of the second part, the Shaakichiuwaanaan mission might turn into one of many world’s largest spodumene producers, offering spodumene focus with a 5.5% lithium oxide content material, or SC5.5, in a steady jurisdiction.
General, the mission is anticipated to have a pre-tax internet current worth of $3.6 billion, with a pre-tax inner fee of return of 38% at $1,375 per tonne.
The payback interval has been pegged at 3.6 years at an assumed common lithium value of 1,375 per tonne or $1,500 per tonne, with a 24 yr mine life.
Closing funding determination by 2027
Chief govt Ken Brinsden stated the outcomes of the PEA reveal the potential for the corporate to turn into a worldwide lithium chief and key provider of lithium uncooked supplies, regardless of the early stage of exploration.
“The flexibleness and scalability [of the staged development pathway for Shaakichiuwaanaan] might permit us to adapt nimbly to evolving market circumstances, whereas persevering with to develop the useful resource base,” Brinsden stated in a press release.
The manager stated Patriot will solely decide to improvement after contemplating the financial circumstances that prevail or are foreseeable on the time that an preliminary manufacturing determination is made.
The corporate goals to make a remaining funding determination by 2027, doubtlessly enabling building to proceed via 2028 and preliminary manufacturing to begin in early 2029.
Patriot is concurrently contemplating advancing to the Feasibility Research stage, because it believes that Shaakichiuwaanaan’s anticipated low working prices and anticipated IRA-compliant high-quality lithium output would make the corporate a beautiful companion for downstream gamers.