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Lithium South Development in short
Lithium South Development Corp controls a lithium project in Argentina that boasts a highly favorable metallurgical profile, characterized by high-grade and low-impurity levels.
The company has established a strategic partnership with Chemphys, a major chemical company based in China. At present, Lithium South Development is collaborating with Eon Minerals to evaluate various technologies that can optimize the production process, including both conventional technologies and Direct Lithium Extraction (DLE) technologies.
Net Present Value
$451M*
Estimated using *$20,000/t LCE pricing. After-tax, 8% discount-rate
Resource Estimate:
0.6 Mt LCE
Measured & Indicated
Stage:
PEA
Completed
The lithium prices has reached unprecedented levels. As a result, major mining corporations are already showing an increased interest in M&A activity within the lithium sector. Over the past year, the Hombre Muerto Salar region in Argentina has been the focal point of lithium M&A transactions, with significant investments being made in existing operations.
If you’re looking to invest in a junior mining lithium project situated in Hombre Muerto, there are only two advanced publicly traded companies with a presence in the region….
Project: Hombre Muerto North Highlights
Lithium South Development Corp's project:
Hombre Muerto North
Project: Hombre Muerto North Summary
Net Present Value
$451M
$12000/t LCE pricing. After-tax, 8% Discount rate
Resource Estimate
0.6 Mt LCE
Measured & Indicated
Stage
PEA
Last released technical report
Brine profile
Mg/Li
2.6
Sulphate/Li
11.7
Grade
756 mg/l
Location: Salta, Argentina
Completed Stage: PEA
Next Stage: PFS / Pilot plant
Website: lithiumsouth.com
Company Description
“Lithium South Development is developing its Hombre Muerto North Lithium Project to supply future lithium demand. The Company objective is to move the project to production in the near future, utilizing either Direct Lithium Extraction Technology or Conventional Evaporation. The Company is evaluating both recovery processes in parallel.”
Key takeaways:
1. High Grade & Low impurity levels
Hombre Muerto North boasts high grade brine with very low combined sulphate and magnesium impurity levels.
2. Partnered with chemistry giant Chemphys
The company has established a strategic partnership with Chemphys, a prominent chemical company based in China. As part of the partnership, Chemphys has secured a 100% off-take agreement from the Hombre Muerto North project.
3. Evaluating technologies to optimize production processes, both conventional and DLE
The company is currently evaluating technologies that could optimize the use of resource together with EON Minerals that has a laboratory in Salta, Argentina. Both conventional processes and Direct Lithium Extraction (DLE) are being evaluated.
4. Resource expansion drill program
Throughout 2022 and 2023, the corporation has been engaged in drilling activities at its Alba Sabrina property, which is the largest claim in its portfolio. The outcomes obtained so far have been remarkably successful, suggesting the presence of a significant brine aquifer with elevated grades and minimal impurities. It is anticipated that a resource update will be disclosed during the first half of 2023.
Project: Hombre Muerto North Resources & Reserves
Resources
Reserves
Project: Hombre Muerto North Key Figures
Initial capital costs
$93M
After-tax IRR
45%
$20,000/t LCE pricing, 8% Discount rate
Operating Cost
$3122/t
LCE
Ownership
100%
Project: Hombre Muerto North Sensitivity Analysis : Forecasted pricing
| Pricing forecast | NPV 8% (After-tax) US$ | IRR |
|---|---|---|
|
$20,000/t LCE* |
$451 M* |
45*% |
|
$12420/t LCE |
$217 M |
34.8% |
|
$15525/t LCE |
$313 M |
37.7% |
*Interpolated value
Lithium South Development $LIS Current valuation
See how much of the lithium project’s Net Present Value is priced in with todays valuation. The data is delayed 15-minutes.
