Lithium South Development Corporation (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) has announced a significant milestone for its Hombre Muerto North Lithium Project in Salta, Argentina, revealing a Preliminary Economic Assessment (PEA) with promising financial figures.

PEA Overview

Lithium South reports an after-tax Net Present Value (NPV) of US$934 million and an Internal Rate of Return (IRR) of 31.6%, indicating robust project economics. The PEA estimates a mine life of 25 years with a rapid payback period of just 2.5 years, based on an annual production rate of 15,600 tonnes of lithium carbonate.

Technical Highlights and Project Development

Peter Ehren, M.Sc., MAusIMM, and Dr. Mark King, Ph.D., P.Geo., lead the technical teams in resource estimation and processing, highlighting an effective brine extraction and lithium recovery process. Richard Goodwin, P.Eng., oversees the project, emphasizing cost-efficient and environmentally responsible mining practices.

Project location permits and environmental considerations also align with Lithium South’s commitment to sustainable development, aiming for minimal environmental impact.

Lithium Market Insights

With lithium prices assumed at US$20,000 per tonne for the study, the project economically benefits from the rising demand for lithium, driven by the electric vehicle market and renewable energy sectors.

Increased Lithium Recovery Efforts

The updated lithium recovery process leverages industry-standard evaporation technology, improving recovery rates and reducing environmental impact.

Lithium South, transitioning from exploration to development, focuses on the next steps to bring the HMN Lithium Project into production, reinforcing its position in the lithium industry.

Disclaimer:
The content presented on this page has not been manually verified by our team. While we strive to ensure accuracy, we cannot guarantee the validity, completeness, or timeliness of the information provided. Always consult with appropriate professionals or sources before making any decisions based on this content.

Click here for more Company News