In short

Net Present Value:

$0.7 B

$12000/t LCE pricing. After-tax, 8% Discount rate

Resource Estimate:

0.5 Mt

LCE, Measured & Indicated

Stage:

PEA

Completed

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Lithium project:

PAK

Ontario, Canada

Project Summary

Net Present Value

$0.7B

$12000t LCE pricing. After-tax, 8% Discount rate

Resource Estimate

0.5 Mt

Measured & Indicated

Completed Stage:

PEA

Location: Ontario , Canada
Completed Stage: PEA
Next Stage: DFS
Deposit type: Hard Rock

Website: frontierlithium.com

Company description

The PAK deposit shares the differentiating characteristic of being low-iron spodumene to the world-class Greebushes’ deposit in southwestern Australia. The new PEA for the project includes a conversion facility to be able to  capitalize on a larger piece of the value chain.

The deposit is outcropped at the earth’s surface and is amenable to low-cost open pit mining. It is an LCT (lithium- cesium- tantalum) type pegmatite (coarsely crystalline granite or other igneous rock with crystals several centimeters to several meters in length). The deposit is a large intrusion, with internal zonation (defined mineralogical assemblages) and high concentration (PAK maintains the highest known grades in North America). These types of pegmatites have been the principal source of hard rock lithium, tantalum, rubidium and cesium ores mined in the world but there are few commercially-viable deposits.

Key takeaways:

1. Low iron, high purity spodumene

The projects resource is characterized by low impurity, high quality spodumene.

2. Exceeds Chemical grade requirements for battery usage

Exceeds chemical grade requirements for further upgrading to produce compounds for the lithium-ion battery market.

3. Sustainable Lithium

Confirmation of suitability of the material to meet the most rigorous specifications of the lithium market.

4. Internal Conversion Facility

The new PEA includes an internal conversion facility to convert the. concentrate to battery grade lithium hydroxide. 

Resources & Reserves

Resources

Reserves

Project Economics

Initial capital costs

$682M

After-tax IRR

21%*

$13500/t* LCE pricing, 8% Discount rate

Operating Cost

$4083/t LCE

Ownership

100%

Of the PAK project

Sensitivity Analysis - Forecasted Pricing

Forecasted SC6 pricing After-tax NPV(8%) After-tax IRR
$12000/t *
$713 M*
N/A
$13500/t
$975 M
21%
$14850/t
$1.21 B**
N/A

* Interpolated value

** Assumed after-tax NPV  based on taxation figures presented in report

Frontier Lithium: $FL Current valuation

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Company financials

Debt

$0.29 M CAD

Sep 30, 2020

Cash & Cash eq

$1.63 M CAD

Sep 30, 2020

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