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Galaxy Resources Ltd.
Summary
| Project: | Sal de Vida | |
|---|---|---|
| Deposit: | Sal de Vida | |
| Location: | Argentina | |
| Commodities: | Lithium | |
| Date: | 8/22/2016 | |
| Report Code: | JORC | |
| Report Type: | Feasibility Study | |
| Project Stage: | Mine Development | |
| Report details: | 22-8-2016: Galaxy Resources Ltd. announces a Feasibility Study report for its Sal de Vida deposit at the Sal de Vida project. Updated DFS results incl. post-tax NPV (8%) of US$1.416B, IRR of 34.6%. Galaxy Resources Ltd (ASX: GXY) (“Galaxy” or “the Company | |
| Resources: | (Reserve, P+P): 1,139,000 Tonnes Equivalent Li2CO3 at project | |
| CP/QP: | [Resources]: Micheal Rosko (Montgomery & Associates) | |
| ABSTRACT: | Galaxy Resources Ltd (ASX: GXY) (“Galaxy” or “the Company”) is pleased to advise an update to its Definitive Feasibility Study (“DFS”) on its Sal de Vida Project (“Sal de Vida” or “the Project”) in Argentina, that has reaffirmed the strong potential for a low cost and long life operation. The revised DFS now estimates a post-tax net present value (“NPV”) of US$1.416 billion at an 8% discount rate (US$1.043 billion at a 10% discount rate). Sal de Vida has the potential to generate average annual revenues of US$354 million and average operating cash flow of US$273 million per annum. Average operating costs have been estimated at US$3,369 per tonne before potash credits and US$2,959 per tonne to produce battery grade lithium carbonate. The revised total capital cost is now estimated at US$376 million. The Mineral Reserve estimate of 1.1 million tonnes of recoverable lithium carbonate equivalent and 4.2 million tonnes of potassium chloride (potash or KCI) equivalent for the project supports annual production of 25,000 tonnes of battery grade lithium carbonate and 95,000 tonnes of potash over a period of 40 years. Total production is expected to be derived from Proven Reserves (16%) and from Probable Reserves (84%). The DFS has been modelled on an operation with production at these levels, assuming an initial 3-year ramp up for lithium carbonate production to achieve full capacity, with potash production assumed to be deferred by one year for production start with a 2-year ramp up to achieve its planned production capacity. The capital costs that relate to the potash plant and related infrastructure are approximately US$34 million, with operating cost credit of approximately US$410 per tonne of lithium carbonate produced. The Company has the option to consider deferring the capital commitment on building the potash circuit subject to the market conditions for potash pricing. | |
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