NRG Metals Inc. announced that it has filed on SEDAR, its preliminary economic assessment following the summary results previously announced. The PEA report was completed by Knight Piesold Consulting and JDS Energy and Mining Inc., both industry leading independent engineering consulting firms.
NRG President Adrian F.C. Hobkirk is quoted, “We are very pleased to have completed and filed the report, which firmly established the Hombre Muerto North Lithium Project as having significant potential. The smaller environmental footprint, shortened build out time and excellent grade of lithium enhance the attractiveness of the project.”
The PEA Report provides support for NRG Metals Inc. to proceed with the development plans for a 5,000 tonnes-per-year lithium carbonate plant, located at its Hombre Muerto North Lithium Project, Salta Province, Argentina. It is the first is step in moving the HMN Project towards potential development. The process developed for the site is based on conventional, After-tax Net Present Value (NPV) 8% discount rate $217 million After-tax Internal Rate of Return (IRR) 28.0% CAPEX Capital Expenditures $93.4 million OPEX Cash Operating Costs (per metric tonnes of lithium carbonate) $3,128 Average Annual Production (lithium carbonate) 5,000 tonnes Mine Life 30 years Payback Period (from commencement of production) 2 years 8 months proven technology for brine operations. The project is located with easy access to energy, and on a salar of development activity.
Galaxy Resources Ltd. recently sold the land surrounding the HMN Lithium Project to Korean conglomerate POSCO for US$280 million and are continuing to develop their remaining portion of the salar, referred to as the Sal da Vida Project. The project is located in a jurisdiction that is mining friendly (Salta Province), and the Government of Argentina recently announced reducing the corporate tax rate for mining companies to 25% in 2020.