Critical
Elements Canada http://LIAM.LTD/critical
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Critical Elements Lithium complete Positive Engineering Study for a Lithium Hydroxide Monohydrate PlantMONTRÉAL, QC / ACCESSWIRE
/ August 11, 2022 / Critical
Elements Lithium Corporation (TSX-V:CRE)
(OTCQX:CRECF) (FSE:F12) ("Critical
Elements" or the "Corporation") is pleased to
announce completion of an Engineering Study
for a Lithium Hydroxide Monohydrate plant. This strategic milestone could enable Critical Elements to become an important player in the North American Lithium market. Generating separate, standalone engineering studies for (i) the Rose Lithium-Tantalum project and (ii) the Lithium Hydroxide Monohydrate plant may optimize the outcome of discussions with potential strategic investors and end-users. The Engineering Study for a Lithium Hydroxide Monohydrate plant is based on a yearly production of 30,670 tonnes of high-quality battery grade lithium hydroxide monohydrate from 220,587 tonnes of spodumene concentrate purchased solely on the world market on long term contract basis. The study does not rely on or is not based on any purchases of spodumene concentrate from the Corporation's Rose Lithium-Tantalum project. The operating parameters for the Engineering Study were taken from the joint Metso Outotec and Critical Elements Lithium Corporation piloting programs. Lithium Hydroxide Plant The lithium hydroxide plant design and technology was developed by Metso Outotec. It consists of four main areas; calcination, hydrometallurgy, reagent preparation, and final product packaging. The site infrastructure was designed to enable operation of the Process plant. The Calcination Area consists of the conversion of the spodumene into a leachable concentrate. This step is required prior to the hydrometallurgical process. The calcination area includes drying and pre-heating the feed material in a preheating stage, calcination in a fluidized-bed calciner and product cooling in a cooling step and fluidized-bed cooler, respectively. The calciner would be fired with natural gas. The Hydrometallurgical area includes the pressure leaching, conversion, ion exchange and crystallization stages to produce battery grade lithium hydroxide monohydrate. Metso Outotec technologies
result in a compact footprint lithium hydroxide production plant with
optimized energy-efficiency and Figure 1: Process flowsheet
Infrastructure The infrastructure supporting Metso Outotec's lithium hydroxide process plant was designed by WSP and includes the following areas:
The location of the plant
has not yet been identified. There are several potential properties
available in the province of Québec, Canada, Figure 3: Property General Arrangement As at the date hereof, the Corporation is not in a position to confirm that a Lithium Hydroxide Monohydrate plant will ever be implemented or that it will be located in the Bécancour area. Costs The costs prepared for the study
are based on a Class 3 type estimate as defined per the American
Association of Cost Engineers (AACE) International Practice 18R-97 Metso Outotec provided capital cost estimates for the process equipment, electrification, instrumentation, automation, piping, engineering, and technical assistance during commissioning. WSP Canada estimated the capital cost construction of the plant building based on quantities provided by Metso Outotec. WSP Canada estimated the capital cost for all site infrastructure and equipment outside the plant's battery limits. The annual and unit process operating costs for the processing plant were determined for an annual production of 30,670 metric tons per year of battery grade lithium hydroxide monohydrate (LMH). The estimated operating costs for the Lithium Hydroxide Plant include labour, electricity costs, natural gas consumption, potable and industrial water costs, maintenance materials, mobile equipment costs, and reagents. Metso Outotec provided the consumption of reagents and services on which WSP Canada based their respective costs. Next Steps Given the positive results of the study, Critical Elements will continue to evaluate possible site locations for a potential future plant. The Corporation is engaged in a process with its financial advisor, Cantor Fitzgerald, to identify a strategic partner for the Rose Lithium-Tantalum project and has been working to maintain strategic flexibility which explains the standalone nature of the Lithium Hydroxide Monohydrate plant. At this time, the Corporation is not in a position to take a decision on implementation of the Lithium Hydroxide Monohydrate plant. Until a definitive agreement is in place with a strategic group, the Corporation's strategy is to maintain that flexibility. The primary focus of the Corporation continues to be the development of the Rose Lithium-Tantalum project, which has received approval from the Federal Minister of Environment and Climate Change on the recommendation of the Joint Assessment Committee, comprised of representatives from the Impact Assessment Agency of Canada and the Cree Nation Government. The Corporation remains confident in receiving similar approval under the Québec environmental assessment process and believes that receipt of Québec approval may be catalytic in concluding the aforementioned discussions. Strategic Partner and Project Financing Discussion Critical Elements continues to work closely with its financial advisor, Cantor Fitzgerald, to evaluate ongoing interest from global strategic partners that seek to accelerate the Rose Lithium-Tantalum project to production. The process is organized and competitive and interest in the project is strong. In parallel, the Corporation is working with banks and financial institutions to accelerate the debt financing portion of the project. The Corporation has held discussions with several automobile manufacturers, cathode manufacturers, trading houses and cell manufacturers. A substantial number of non-disclosure agreements with potential strategic partners are now in place, illustrative of the competitive tension in the lithium market. These parties are currently in the process of reviewing the Corporation's extensive data set in the data room. Given their track-record, end-users recognize the ability of Critical Elements' management to successfully deliver lithium products and our development strategy provides the flexibility to meet all major end-users' current and future needs. Consultants The study is the work of several consultants including WSP Canada, Metso Outotec, and Gerrit Fuelling. Metso Outotec was responsible for the spodumene calcination and conversion to LiOH process design and equipment. The calcination of the concentrates was designed by Outotec GmbH & Co. of Germany and the hydrometallurgical conversion to LiOH was designed by Metso Outotec (Finland) Oy of Finland. WSP Canada was responsible for the infrastructure necessary for the operation of the lithium hydroxide plant and study integration. Gerrit Fuelling provided the market study giving guidance for the price forecast for lithium hydrate monohydrate and spodumene concentrates. The study is based on a standalone conversion plant and does not constitute a "mineral project" for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Furthermore, the plant does not form part of the Corporation's Rose Lithium project which consists solely of a mine to produce spodumene and tantalum concentrates. As at the date hereof, notwithstanding the results announced today, the Corporation is not in a position to confirm that a chemical plant to produce high quality lithium hydroxide monohydrate will ever be implemented. About Critical Elements Lithium Corporation Critical Elements aspires to become a large, responsible supplier of lithium to the flourishing electric vehicle and energy storage system industries. To this end, Critical Elements is advancing the wholly owned, high purity Rose lithium project in Québec. Rose is the Corporation's first lithium project to be advanced within a land portfolio of over 700 square kilometers. On June 13th, 2022, the Corporation announced results of a feasibility study on Rose for the production of spodumene concentrate. The after-tax internal rate of return for the Project is estimated at 82.4%, with an estimated after-tax net present value of US$1.9 B at an 8% discount rate. In the Corporation's view, Québec is strategically well-positioned for US and EU markets and boasts good infrastructure including a low-cost, low-carbon power grid featuring 93% hydroelectricity. The project has received approval from the Federal Minister of Environment and Climate Change on the recommendation of the Joint Assessment Committee, comprised of representatives from the Impact Assessment Agency of Canada and the Cree Nation Government; The Corporation is working to obtain similar approval under the Québec environmental assessment process. The Corporation also has a good, formalized relationship with the Cree Nation. For further information, please contact: Patrick Laperrière Jean-Sébastien
Lavallée, P. Géo. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is described in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Cautionary statement concerning forward-looking statements This news release contains "forward-looking information" within the meaning of Canadian Securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "scheduled", "anticipates", "expects" or "does not expect", "is expected", "scheduled", "targeted", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information contained herein include, without limitation, statements regarding the Corporation's future plans relating to projected a Lithium Hydroxide Monohydrate plant (the "Plant"); potential financing arrangements; the anticipated production of lithium hydroxide monohydrate and related processing methods; the anticipated timing of a final investment decision, construction activities and potential in-service date of the Plant; the anticipated features of the future site of the Plant and expected benefits thereof; Critical Elements' opinions, beliefs and expectations regarding the Corporation's business strategy, development and exploration opportunities and projects, and plans and objectives of management for the Corporation's operations and properties. Forward-looking information is based on certain estimates, expectations, analysis and opinions of the Corporation and in certain cases, third party experts, that are believed by management of Critical to be reasonable at the time they were made. This forward-looking information was derived utilizing numerous assumptions regarding, among other things, the supply and demand for, deliveries of, and the level and volatility of prices of, intermediate and final lithium products, expected growth, performance and business operation, future commodity prices and exchange rates, prospects and opportunities, general business and economic conditions, results of development and exploration, Critical Elements' ability to procure supplies and other equipment necessary for its business. The foregoing list is not exhaustive of all assumptions which may have been used in developing the forward-looking information. While Critical considers these assumptions to be reasonable based on information currently available, they may prove to be incorrect. Forward-looking information should not be read as a guarantee of future performance or results. Although Critical Elements has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Factors that may cause actual results to differ materially from expected results described in forward-looking information include, but are not limited to: the Corporation's ability to access funding required to invest in available opportunities and projects (including the proposed Plant) and on satisfactory terms, the current and potential adverse impacts of the COVID-19 pandemic, including future outbreaks and any associated policies or restrictions on business, the risk that Critical will not be able to meet its financial obligations as they fall due, changes in commodity and other prices, Critical Elements' ability to retain and attract skilled staff and to secure feedstock from third party suppliers, unanticipated events and other difficulties related to construction, development and operation of the Plant, the cost of compliance with current and future environmental and other laws and regulations, title defects, competition from existing and new competitors, changes in currency exchange rates, market prices of Critical Elements' securities, as well as those risk factors set out in the Corporation's Management Discussion and Analysis for its most recent quarter ended May 31, 2022 and other disclosure documents available under the Corporation's SEDAR profile at www.sedar.com. Forward-looking information contained herein is made as of the date of this news release and Critical Elements disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. |
Critical Elements Lithium Announces appointment of Mr. Yves Perron as Vice-President Engineering, Construction, and ReliabilityMONTRÉAL, QC / ACCESSWIRE / August 2, 2022 / Critical Elements Lithium Corporation (TSX-V:CRE) (OTCQX:CRECF) (FSE:F12) ("Critical Elements" or the "Corporation") is pleased to announce the appointment of Mr. Yves Perron as Vice-President Engineering, Construction and Reliability. Mr. Yves Perron, Eng., MBA
brings extensive experience in mining sector, engineering and
construction in Québec to the Corporation. In connection with this
appointment, Mr. Perron has been awarded 300,000 stock options of the
Corporation at an exercise price of $1.53 per share Jean-Sébastien Lavallée, CEO of Critical Elements commented: "We are very pleased to welcome Yves to our team. Yves was central to the success of the construction of Renard, a diamond project of nearly $1 billion of construction capital. He and his team were able to execute on the construction of this large mine project in Eeyou Istchee territory, Québec ahead of schedule and under budget. We are sure to benefit from his background and experience in delivering one of the most recent major operations successfully built in the Province." About Critical Elements Lithium Corporation Critical Elements aspires to become a large, responsible supplier of lithium to the flourishing electric vehicle and energy storage system industries. To this end, Critical Elements is advancing the wholly owned, high purity Rose lithium project in Québec. Rose is the Corporation's first lithium project to be advanced within a land portfolio of over 700 square kilometers. On June 13th, 2022, the Corporation announced results of a feasibility study on Rose for the production of spodumene concentrate. The after-tax internal rate of return for the Project is estimated at 82.4%, with an estimated after-tax net present value of US$1.9 B at an 8% discount rate. In the Corporation's view, Québec is strategically well-positioned for US and EU markets and boasts good infrastructure including a low-cost, low-carbon power grid featuring 93% hydroelectricity. The project has received approval from the Federal Minister of Environment and Climate Change on the recommendation of the Joint Assessment Committee, comprised of representatives from the Impact Assessment Agency of Canada and the Cree Nation Government; The Corporation is working to obtain similar approval under the Québec environmental assessment process. The Corporation also has a good, formalized relationship with the Cree Nation. For further information, please contact: Patrick Laperrière Jean-Sébastien
Lavallée, P. Géo. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is described in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Cautionary statement concerning forward-looking statements This news release contains "forward-looking information" within the meaning of Canadian Securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "scheduled", "anticipates", "expects" or "does not expect", "is expected", "scheduled", "targeted", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information contained herein include, without limitation, statements relating to mineral reserve estimates, mineral resource estimates, realization of mineral reserve and resource estimates, capital and operating costs estimates, the timing and amount of future production, costs of production, success of mining operations, the ranking of the project in terms of cash cost and production, permitting, economic return estimates, power and storage facilities, life of mine, social, community and environmental impacts, lithium and tantalum markets and sales prices, off-take agreements and purchasers for the Corporation's products, environmental assessment and permitting, securing sufficient financing on acceptable terms, opportunities for short and long term optimization of the Project, and continued positive discussions and relationships with local communities and stakeholders. Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Although Critical Elements has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Factors that may cause actual results to differ materially from expected results described in forward-looking information include, but are not limited to: Critical Elements' ability to secure sufficient financing to advance and complete the Project, uncertainties associated with the Corporation's resource and reserve estimates, uncertainties regarding global supply and demand for lithium and tantalum and market and sales prices, uncertainties associated with securing off-take agreements and customer contracts, uncertainties with respect to social, community and environmental impacts, uncertainties with respect to optimization opportunities for the Project, as well as those risk factors set out in the Corporation's year-end Management Discussion and Analysis dated August 31, 2021 and other disclosure documents available under the Corporation's SEDAR profile. Forward-looking information contained herein is made as of the date of this news release and Critical Elements disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. RECENT & RELEV |
Generating an After-Tax NPV at 8% of US$1.9 B and an After-Tax IRR of 82.4% 6-2022 MONTRÉAL, QC / ACCESSWIRE
/ June 13, 2022 / Critical
Elements Lithium Corporation (TSXV:CRE)
(OTCQX:CRECF) (FSE:F12) ("Critical
Elements" or the "Corporation") Highlights
The Rose Lithium-Tantalum
Project is 100% owned by Critical Elements. Critical Elements has
consistently sought to advance the wholly owned Rose Lithium-Tantalum
Project in a low-risk manner. [0.87% corresponds to 8700 ppm of Li2O or 4041 ppm of Li.] The mill will process 1.61M tonnes of ore per year to produce an annual average of 224,686 tonnes of technical and chemical grade spodumene concentrates and 441 tonnes of tantalite concentrate. The ore is contained
in several parallel and continuous shallow dipping pegmatite dykes
outcropping on surface. Over the life of mine,
the open pit will excavate a total of 182.4M tonnes of waste rock and
10.9 M tonnes of overburden. Table 1 Rose Key FS Results
*Discounting starts with commercial production. Property The Rose property is
located in northern Québec's administrative region, on the
territory of Eeyou Istchee James Bay. The Rose property is
accessible by road via the Route du Nord, usable all year round from
Chibougamau. The Rose property comprises
473 claims spread over a 24,654-ha area. Over the life of mine, the
open pit will excavate a total of 182.4M tonnes of waste rock and 10.9
M tonnes of overburden. Figure 1 Rose Property Location
Reserve Estimate A Mineral Reserve Estimate
for 17 mineralized zones was prepared during this study. The recoveries were fixed
at 85% and 64% for Li and
Ta respectively. Based on compilation status, metal price parameters, and metallurgical recovery inputs, the effective date of the estimate is May 27, 2022. The estimate was prepared in accordance with CIM's standards and guidelines for reporting mineral resources and reserves. Table 2 displays the results of the Mineral Reserve Estimate for the Rose Project at the $36.92 NSR per tonne cut-off for the open-pit scenario. Table 2 Mineral Reserve Estimate
Resource Estimate ("MRE") The current MRE is
primarily based on changes made to the net smelter return ("NSR")
parameters, The effective date of
the estimate is May 27th, 2022, based on compilation status, Given the density of
the processed data, the search ellipse criteria, Table 3 displays the
results of the MRE for the Rose Project using $31.4 NSR/t cut-off for
the open-pit potential Table 3 Mineral Resource Estimate
Feasibility Study The parameters used for the feasibility study are the following:
Mining Operation The mineralization is hosted within outcropping pegmatite dykes subparallel to surface. The ore body is relatively flat, close to surface and comprised of north oriented stacked lenses. Mineralization recognized to date on the Rose property includes rare element of Lithium-Cesium-Tantalum or LCT-type pegmatites and molybdenum occurrences. A conventional truck and shovel open-pit approach was considered to mine the Rose Lithium-Tantalum Project's Probable Mineral Reserves. The dimensions of the engineered pit design are approximately 1,620m long x 900m wide x 220m deep. The life of mine plan (LOM) proposes to mine 26.3 Mt of ore, 182.4 Mt of waste, and 10.9 Mt of overburden for a total of 219.6 Mt of material. The average stripping ratio is 7.3 tonnes of waste per tonne of ore. The nominal production rate is estimated at 4,600 tonnes per day and 350 operating days per year. The mining operation production rate is set to approximately 15 Mt of material per year. An open pit mining schedule was planned and resulted in a mine life of 17 years. Contract mining will be used for the removal of the overburden while Critical Elements will undertake the mining of all hard rock material with its own equipment fleet and operators. The main production fleet will consist of one (1) backhoe excavator, one (1) electric front shovel, one (1) wheel loader, seven (7) haul trucks (65t), seven (7) haul trucks (135t), two (2) rotary drills, one (1) DTH drill, two (2) bulldozers, one (1) wheel dozer, two (2) graders, one (1) auxiliary excavator, one (1) auxiliary wheel loader, and two (2) water trucks. The Rose project pit was designed with a 10m single benching arrangement. A 57° inter-ramp angle and an overall pit slope angle of 55° were utilized for the ultimate pit design. A berm width of 7.0m corresponding to the recommended overall slope angle was used. The pit slopes in overburden have a face ratio of 2.5:1 with a 10m berm width. The main in-pit haulage ramp is designed at 30.9m wide to allow a double-lane traffic, except for the last benches at the pit bottom that are designed at 20.4m wide for single lane traffic. A 2m drainage ditch is included to allow for water drainage and pipe installation. The maximum gradient of the inner curvature of all ramp segments is 10%. Figure 3 Rose Pit Side View Looking West
A standard froth flotation process will be utilized to produce technical grade and chemical grade lithium concentrates and a tantalum concentrate. The mineral process plant will consist of crushing, beneficiation, and dewatering areas. The technical grade lithium concentrate will grade 6.0% Li2O while the chemical grade lithium concentrate will grade 5.5% Li2O. The tantalum concentrate will grade 20% Ta2O5. The beneficiation process includes crushing, grinding, magnetic separation and flotation. The crushing circuit will consist of a jaw crusher and two (secondary and tertiary) cone crushers, and screens. The crushed ore will have a P80 of 13 mm and will be stockpiled in a 9,200-tonne capacity dome; this is sufficient for approximately two days of mill operation. The grinding circuit will consist of a ball mill operating in a closed circuit and a two-stage cyclone cluster. The tantalum will first be recovered at a grade of 2.0% Ta2O5 by high intensity magnetic separation then upgraded further to 20.0% Ta2O5 by gravity separation. The lithium flotation circuit will include removal of slimes after magnetic separation followed by mica flotation, scrubbing, and spodumene flotation to the required grade. The lithium flotation circuit will remove slimes, separate mica, and purify the lithium to the required grade. The spodumene concentrate will then be thickened, vacuum filtered, dried to 1% moisture, and stored in 1500-tonne silo from where it can be bulk loaded into trucks. The tailings will be thickened, vacuum filtered to 15% moisture or less, and trucked to the waste rock / tailings piles where it will be dry stacked. The spodumene plant will operate 24 hours per day, 7 days per week, and 52 weeks per year. The process plant was designed with an operating availability of 90%. The crushing circuit was designed using an operating availability of 50%. The concentrator capacity has been established at a nominal throughput rate of 4 900 dry tonnes per day. The plant has a capacity of 1,610,000 per year. The process plant flowsheet developed by Bumigeme Inc. is presented in Figure 4. Figure 4 Rose Process Flowsheet
Metallurgy Bench scale metallurgical testing was performed at ACME Metallurgical Limited in Vancouver in 2011. The results from these tests were used for the PEA study. Three composites; the Rose (main structure), the Rose Sud-Est (Southeast structure) and Tantalum (secondary structure with higher tantalum and lower lithium content) were subjected to various metallurgical tests. SGS Canada Inc. in Lakefield conducted tests from 2013 to 2015 to improve lithium and tantalum recoveries. In 2015 SGS Canada Inc. developed a conceptual flowsheet based on a series of bench scale tests on various samples from the Rose deposit. The proposed flowsheet consists of conventional three-stage crushing and single stage grinding followed by magnetic separation for the recovery of tantalum, mica flotation, and spodumene flotation. This flowsheet was the basis of the process plant design. SGS Canada also conducted a pilot plant program in early 2017 on two samples from the Rose project (Rose and Rose South). The main objective of the pilot plant program was to generate spodumene concentrate for testing in a lithium carbonate pilot plant which was conducted by Outotec in Germany and Finland. Secondary objectives were to prove metallurgical performance on a continuous pilot scale and to generate metallurgical and operating data for further studies. The spodumene pilot plant demonstrated the robustness of the design process. The Feasibility Study assumes 87.3% and 90% recovery for technical and chemical grade lithium concentrates respectively and 40% minimum recovery for the tantalum concentrate. Process water will be recycled releasing minimal amounts to the equalization pond and final effluent treatment plant. Environmental and Social Impact Assessment The final environmental impact assessment (EIA) was submitted to the governments of Canada and Quebec in February 2019. CELC has answered a series of questions from both government bodies (COMEX and CEAA). In August 2021, Critical Elements announced that the Federal Minister of Environment and Climate Change had rendered a favorable decision in respect of the proposed Rose Project. In a Decision Statement, which included the conditions to be complied with by the Corporation, the Minister confirmed that the Project is not likely to cause significant adverse environmental effects when mitigation measures are taken into account. The final remaining step in the Rose Project's approval process is the completion of the provincial permitting process, which runs parallel to the federal process. Pursuant to the James Bay and Northern Quebec Agreement (JBNQA), the provincial environmental assessment is conducted jointly by the Cree Nation Government and the Government of Quebec under the Environmental and Social Impact Review Committee ("COMEX"). The provincial assessment is already well advanced and has undergone several rounds of questions from COMEX and answered by Critical Elements in the normal course of the assessment process. At this time, Critical Elements has received no further questions from COMEX and remains confident in a positive outcome given the stated support for lithium project development in the Province of Québec. Critical Elements has been working since the beginning with the Eastmain Community, on whose lands the Project lies. The Corporation has also maintained good relations with the Grand Council of the Cree and with the neighbouring Nation of Nemaska. Consultations have been ongoing and are planned throughout the life of the Project. In 2019, Critical Elements entered into an impact and benefits agreement with the Cree Nation of Eastmain, the Grand Council of the Cree (Eeyou Istchee), and the Cree Nation Government called the Pihkuutaau Agreement. The Corporation's mine closure and restoration plan was accepted by the Ministry of Energy and Natural Resources of the Province of Québec (MERN) in April 2022. Infrastructure The Project infrastructure includes site main access, services and haulage roads, explosive and detonator storage, a spodumene processing plant, a maintenance facility, a warehouse, diesel and gasoline storage, LNG storage and distribution, ore stockpile pad, waste rock and dry tailings stockpile, overburden stockpile, main electrical substation and distribution, fresh and potable water supply, sewage, surface water management, final effluent treatment, communication system, gate house, and an administrative building. The mine site layout is shown in
Figure 5. Figure 5 Rose Site Layout
Figure 5 Rose Site Layout Waste rock and tailings samples were analyzed at the SGS Canada's laboratory in Lakefield and both were found to be non-acid generating. The dry tailings and the waste rock will be stored in the same facility which has sufficient capacity for the life of mine. Rain and snow melt water will be collected in ditches and pumped to the water treatment plant. The industrial pad has an area of 296,000 m2 and will contain the process plant, the maintenance facility, warehouse, administration building, diesel and gasoline storage tanks, LNG storage and distribution, and all associated services. LNG will be used for buildings heating and for the drying of the lithium and tantalum concentrates. The ore pad will have a 3.9M tonne capacity where low-grade material may be stored. The hydrology study has suggested that water inflow to the open pit is to be expected. In order to maximize pit slopes, water wells will be constructed around the pit periphery to lower the water table below the pit floor. One of these wells will be used to supply the mine site with fresh water. Water from the other wells will be directed to sedimentation ponds and treated, if necessary, before being released to the final effluent. Water from the waste rock / dry tailings stockpile, the open pit, the industrial pad, the overburden stockpile and the roads will be collected in an equalization pond and treated before being released as final effluent. The mine site will have a 2.7 km main access road from the Eastmain 1 road to the industrial pad. Including the service roads, the site will total 15.8 km of roads. Electricity will be provided by Hydro-Québec. A 315 kV electrical transport line (L3176), owned by Hydro‑Québec, runs North-South over the eastern side of the Rose Property. It runs over the planned open pit. The portion running over the open pit representing 4.2 km will be rerouted to allow open pit operation. Figure 6 Power Line at Rose Site Capital Costs The capital and operating
costs were estimated in Canadian dollars. The total payable products
are estimated at 2,797,668 tonnes of chemical grade 5.5% Li2O
concentrate, Table 4 Initial Capital and Sustaining Capital Costs
Operating Costs The operating costs are estimated at $96.73 US$74.48 per tonne of ore processed which include:
The total operating costs are estimated at US$550/tonne of concentrate after Tantalite Credit, as summarized in Table 5. Table 5 Operating Costs per Tonne of Concentrate
Energy unit costs are CA$0.06 per kWh for electricity, CA$1.70 per litre for diesel, and CA$0.935 per m3 for LNG. Project Economics The mine will process
1,610,000 tonnes ore per year grading an average of 0.87% Li2O and 138
ppm Ta2O5 over
a period of 17 years. Figure 7 shows the prices per year for the lithium concentrate products. Figure 7 Concentrate Selling Price Per Year
The pre-tax and after-tax NPV at various discount rates are presented in Table 6. Table 6 Pre-Tax and After-Tax NPV
*Discounting commences with commercial production. The after-tax internal rate of return is 82.4%. Sensitivity Analysis The sensitivity of the NPV to exchange rate and chemical grade lithium concentrate price is presented in Table 7. Table 7 After-Tax NPV Sensitivity to Exchange Rate and Chemical Grade Lithium Concentrate
Figures 8 and 9 present the sensitivity of the NPV at 8% discount rate and IRR to prices, Li2O recovery, exchange rate, operating costs, and capital cost. The economics are most sensitive to Li2O price, exchange rate, and Li recovery. Figure 8 Sensitivity on After-Tax NPV 8%
Figure 9 Sensitivity on After-Tax IRR
Lithium Demand Outlook The future growth of
the lithium market will clearly be dominated by e-mobility powered by
Li-ion batteries In the coming years
the major driver of the Lithium demand growth continues to be the
electro mobility. Considering about 100
million new cars per year by 2030, and assuming that 40% of them are
BEVs equipped Most recently, all
major lithium producers as well as the leading market analysts have
increased their forecasts significantly. Figure 10 Lithium Demand Forecast for 2025
and 2030
Lithium Price Outlook Based on the actual
demand forecast, the increased production cost of incumbents and
newcomers, As the market faces a
structural supply deficit for the remainder of this decade, Also, suppliers who
are able to provide a higher quality chemical grade spodumene
yielding lower conversion cost The market for
technical grade spodumene is a specialty chemicals market, Historically, prices
have been reflecting the higher value of iron free spodumene like in
lithium carbonate Therefore, pricing for technical grade spodumene is directly linked to the lithium oxide content in lithium carbonate. Ongoing Work The geotechnical program is being completed. Front-End Engineering is being conducted and detailed engineering work will follow. The detailed design of the co-disposal facility for the stacked tailings and pit waste rock is under way. Report Filing The Corporation plans to
file an NI 43-101 technical report that summarizes the Rose
Lithium-Tantalum project on SEDAR (http://www.sedar.com)
and Qualified Persons The Feasibility Study was
prepared in accordance to 43-101 standards by The qualified persons for the study are: InnoExplo Inc;
Bumigeme;
WSP;
About Critical Elements Lithium Corporation Critical Elements
aspires to become a large, responsible supplier of lithium to the
flourishing electric vehicle and The Corporation is
working to obtain similar approval under the Québec
environmental assessment process. For further information, please contact: Patrick Laperrière Jean-Sébastien Lavallée,
P. Géo. Neither the TSX
Venture Exchange nor its Regulation Services Provider (as that term is
described in the policies of the TSX Venture Exchange) Cautionary statement concerning forward-looking statements This news release contains "forward-looking information" within the meaning of Canadian Securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "scheduled", "anticipates", "expects" or "does not expect", "is expected", "scheduled", "targeted", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information contained herein include, without limitation, statements relating to mineral reserve estimates, mineral resource estimates, realization of mineral reserve and resource estimates, capital and operating costs estimates, the timing and amount of future production, costs of production, success of mining operations, the ranking of the project in terms of cash cost and production, permitting, economic return estimates, power and storage facilities, life of mine, social, community and environmental impacts, lithium and tantalum markets and sales prices, off-take agreements and purchasers for the Corporation's products, environmental assessment and permitting, securing sufficient financing on acceptable terms, opportunities for short and long term optimization of the Project, and continued positive discussions and relationships with local communities and stakeholders. Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Although Critical Elements has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Factors that may cause actual results to differ materially from expected results described in forward-looking information include, but are not limited to: Critical Elements' ability to secure sufficient financing to advance and complete the Project, uncertainties associated with the Corporation's resource and reserve estimates, uncertainties regarding global supply and demand for lithium and tantalum and market and sales prices, uncertainties associated with securing off-take agreements and customer contracts, uncertainties with respect to social, community and environmental impacts, uncertainties with respect to optimization opportunities for the Project, as well as those risk factors set out in the Corporation's year-end Management Discussion and Analysis dated August 31, 2021 and other disclosure documents available under the Corporation's SEDAR profile. Forward-looking information contained herein is made as of the date of this news release and Critical Elements disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. |