Project

The 3Q Project

Work completed to 2021

1 km
Geoelectric Survey
5 km
Seismic Reflection Survey
0
Drill Holes
0 km
Long Term Pump Test Completed
1 its/sec
Production Well Maximum Yield

Location and Access

Hosted in the mining friendly Catamarca Province, the largest and oldest Lithium producing province in Argentina.

Located at 4000 meters above the sea level, 30kms from the Chilean border, with direct road access to pacific ports by highway and to Atlantic ports through highways and railroad.

The closest population centre to the Project is the town of Fiambalá, Argentina (population 5,000), located 100 km east of the Project.

Resource and Reserves

4 Mt LCE

Measured and indicates resources

3 Mt LCE

Inferred Resources

1.3 Mt LCE

Proven and Probable Reserves

1000mg/l Lithium

Average grade over the first 10 years of production.

840mg/l Lithium

Average grade from 10 to 20 years of production.

790mg/l Lithium

Average grade in 35 years of production.

Impurities:

Mg/Li: 1.7

Sulfate/Li:00.3

Large throughput and/or mine life expansion capabilities: 32% or resources used.

The resources go down to over 647 m depth in most of the deposit but reserves only go down to the upper aquifer in the shallow 100 metres depth.

Plenty of upside to increase reserves on the large, inferred resource at depth.

Northern High-grade zone allows to start production at higher grade with smaller ponds (lower Capex) and move south to lower grade over time.

YearBrine Volume
(M3)
Average Li concentration (mg/l)Li metal (tonnes)LCE (tonnes)M&I Resources (%)
13.31,1771,1132,5425,92313,5260.5%
2-10731,00021,54944,038114,642234,2829%
11-2010184120,21153,472107,524284,47210%
21-3518367018,69481,51399,453433,65113%
Total 35
years production**
36079061,600182,000328,000966,00032%

Pond Pilot Plant

Lithium Carbonate Pilot Plant

Lithium Carbonate Production

In May 2019 GHD Chile and Groundwater insight Canada completed a 43-101 Independent Technical Report and Prefeasibility Study The report provides a comprehensive assessment of geological, technical, engineering, operational, logistics and the economic analysis of the 3Q Project The economic analysis is based on average lithium carbonate pricing over the life of mine is ~US$11,882/t Results Show very low capital intensity  of  < US$16,000/t of installed capacity

 

 
PFS Highlights and Results
After-Tax Net Present Value ("NPV") @ 8% Discount Rate $1,144 million
After-Tax Internal Rate of Return ("IRR") 49,9%
Initial Capital Expendidures $319 million
Cash Operating Costs (per tonne of LCE) $2,914
Steady-state Annual Production (lithium carbonate) 20,000
Mine Life 35 years
Average annual EBITDA* $167 million
Payback Period (from commencement of production) 1 year 8 month

*EBITDA is a non-IFRS earnings measure which does not have any standardized meaning prescribed by IFRS and therefore may not be comparable to EBITDA presented by other companies. EBITDA represents earnings before interest expense, income taxes, depreciation and amortization. Investors are cautioned that this non-IFRS financial measure should not be construed as an alternative to other measures of financial performance calculated in accordance with IFRS.

 

 

Mining Property for 99 years granted over a total of 350km

Tax Stability for 30 years granted by the federal Government

Income Tax at 25% – with royalty payment to government at 3%

Surface Easement granted for mine construction by mining authorities

Access Easement granted by mining authorities

Environmental Permit granted for Exploration, Mining and Pilot plant and Pilot Ponds Development

Final Environmental permit for construction presented to the government, in process of approval

Agreement in place with local municipality to build plant in Fiambalá on government Land near town

 

Lithium Carbonate Production