Salar de Arizaro

ABOUT THIS ASSET

On July 23, 2024, Lithium Chile announced the successful completion of the pre-feasibility study (PFS) for the Arizaro Project in Salta, Argentina.

The PFS outlines the project’s strong economic viability, environmental sustainability, and long-term operational potential.

HIGHLIGHTS:

• Project Location: Salar de Arizaro, Departamento de los Andes, província de Salta, Argentina
• Production Capacity: 25,000 tonnes per annum of Battery Grade Lithium Carbonate (LCE)
• A Life-of-Mine (LOM) duration of 20 years.
• Mineral Resource of 4,122,000 tonnes LCE:
  • Measured Mineral Resource: 261,000 tonnes LCE
  • Indicated Mineral Resource: 2,237,000 tonnes LCE
  • Inferred Mineral Resource: 1,624,000 tonnes LCE

• Probable Mineral Reserve of 490,000 tonnes LCE 
• Project Economics:
  • Pre-tax Net Present Value (NPV)8% US$3.8B
  • Average Li2CO3 price of US$30,513
  • After-tax NPV8% US$2,829M
  • Pre-tax Internal Rate of Return (IRR) of 42.1%
  • After-tax IRR of 36.3%
  • Pre-tax initial capital payback period 2.5 years; after-tax payback 2.7 years
  • Initial Capital Cost (CAPEX) estimated at US$1,055M
  • Operating Cost (OPEX) estimated at $5,457/t LCE.

Building upon the success of the Company’s 2023 Preliminary Economic Assessment, the PFS further solidifies the Arizaro Project’s position as a leading contender in the race for sustainable lithium production.

Summary of the Resource Estimate for the Arizaro Project (Effective April 3, 2024)

Metallurgical Studies

• 2,000 litres of brine collected from the first production well.
• Tests include advanced chemistry studies at the Company’s lab in Jujuy Province to determine best production processes for lithium extraction, conducting evaporation tests to determine concentrations that will yield optimum recovery of lithium.

Water Well in Arizaro

• The Company’s first water well, CHASCHA SUR-01, has been drilled, completed, and cased on the southern border of the Salar de Arizaro.
• Over a 100-metre water aquifer was identified.
• Data from the well was submitted to the Salta Provincial Water Ministry in support of a future application to use a percentage of the water for a lithium carbonate production plant of 15,000 tons per year and to be used in camp for approximately eighty people.

Arizaro Project – On The Ground

• The Company’s camp on the Salar de Arizaro houses and feeds 90 employees as a result of renovations. Additional staff could be housed once production facilities are built
• Since permanently relocating our camp on Salar de Arizaro’s Western Flank, Lithium Chile has opened new roads, improved camp layout, and installed an effluent treatment plant.
• We have built a laboratory, an electrical system, two weather stations, a lightning rod, and sewers in the camp.
• The camp has a fleet of construction vehicles, water trucks, and a crane, Lithium Chile is positioned for efficient operations.