Power Minerals Limited (ASX: PNN) has received positive results from a Preliminary Economic Assessment (PEA) study completed for the Rincon salar, a key part of its Salta Lithium Project in the lithium triangle of Argentina.
The PEA results provide initial formal confirmation of the Rincon salar’s excellent potential to become a significant long-life supplier of high purity, battery-grade lithium carbonate equivalent (LCE), producing 7,061 tonnes of LCE per annum over an initial project life of 14 years.
The PEA forecasts a pre-tax NPV of US$501.85 million, with payback period of 3 years, and pre-tax IRR of 42%.
The PEA is based on the recently reported JORC 2012 Mineral Resource at the Rincon salar, of 292,564 tonnes LCE. Potential to further increase the production profile contemplated in the PEA may exist based on future Mineral Resource upgrades at Rincon.
The PEA assessed production and life-of-mine profile, along with engineering and process costs, plus capital costs and operating costs for a potential high-quality LCE producing operation at Rincon.
We are extremely encouraged by the outcomes of this Preliminary Economic Assessment (PEA) for the Rincon salar, a priority development asset within our Salta Lithium Project in Argentina,” Managing Director Mena Habib said.
“The PEA provides initial formal confirmation of the technical and financial viability of the potential to develop Rincon into a new, long-life source of high purity lithium carbonate. The outcome of the PEA is outstanding validation of our demonstrated commitment to the rapid development of the Salta Lithium Project.
“Having commenced a major Resource expansion drilling campaign at Salta late last year, Power has delivered a substantial JORC Mineral Resource upgrade, and is now engaged in development-phase programs at its priority Rincon and Incahuasi salares.”