Lithium Power International Limited (ASX:LPI) (LPI or the Company) is pleased to submit its quarterly Activity Report for the period ended 31 March 2019.
HIGHLIGHTS
- LPI released its Definitive Feasibility Study (DFS) for the Maricunga Lithium Brine Project on 22 January 2019.
- The DFS shows a pre-tax NPV of US$1.302b and an IRR of 29.8%, assuming a 50% debt/equity ratio (after-tax NPV of US$940m, IRR 26.7%). On a 100% equity basis, NPV is US$1.286b with an IRR of 23.8%.
- Forecast CAPEX of US$563m is inclusive of 19% VAT, recoverable once in production, and includes direct development costs of US$456m, indirect costs of US$45m and contingencies of US$63m.
- Project operating costs are estimated at US$3,772 per tonne (/t) of Lithium Carbonate Equivalent (LCE), excluding offsets from potassium chloride (KCI) sales and any royalties.
- Production of 20,000 tonnes per annum (t/a) LCE would yield a high-value battery-grade lithium carbonate, unlike many lithium hard rock projects under development.
- A maiden Ore Reserve estimate, prepared in accordance with JORC and NI 43-101 international standards, was released on 21 January 2019. It includes a total of 742,000 tonnes (t) of LCE,1 which exceeds the 20-year project mine life production needs.
- There is potential to expand resources and reserves beneath the existing resource, which is currently defined to a depth of 200 m. An exploration target between 200 m – 400 m, confirmed by deep borehole results, could add between 1 Mt – 2.5 Mt of new resources.
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