LTR - Definitive Feasibility Study (DFS) for its 100%-owned Kathleen Valley Project,
some #s to wade through here:
Executive Summary:
Liontown Resources Limited (ASX: LTR; “Liontown” or “Company”) is pleased to announce the completion of the Definitive Feasibility Study (DFS) for its 100%-owned Kathleen Valley Project, with the results confirming the potential to develop a leading second-generation lithium-tantalum mining and processing operation in Western Australia’s Northern Goldfields.
Building on the PFS completed in October 2020, the DFS outlines a Tier-1 global lithium project with exceptionally strong financial and technical merits, combined with a class-leading sustainability and ESG framework that is being fully integrated with the Project’s development, details of which will be released in Q4, 2021.
The DFS delivers exceptional results including a further increase in project NPV8% to $4.2 billion and an Ore Reserve which underpins a ~23-year mine life at a planned initial processing rate of 2.5Mtpa, ramping up to 4Mtpa in Year 6 of operations.
This will see Kathleen Valley become one of the largest new lithium producers globally, with annual production of SC6.0 commencing at ~500ktpa and ramping up to ~700ktpa at globally competitive cash operating costs of US$319/t SC6.0 (Years 1-10, excluding Royalties).
The DFS is based on a long-term weighted average price assumption for SC6.0 of US$1,392/tonne and incorporates realistic assumptions for capital and operating costs that take into account the current extremely competitive environment in the WA resource sector as well as cost escalation in materials, services and salaries.
The DFS clearly demonstrates the scale, grade, product quality and Tier-1 location of the Kathleen Valley Project (close to modern infrastructure), positioning it to advance rapidly to a Final Investment Decision (FID), targeted for Q2, 2022.
Building on the extensive work previously completed, metallurgical test work carried out in 2021 has confirmed the ability to produce a +6% Li2O spodumene concentrate with an estimated average recovery of 81% plus a ~12% Ta2O5 concentrate with an average estimated site recovery of 42%.
The tantalum concentrate will be further upgraded off-site to 30% Ta2O5 prior to shipment.
Disc: RL & SM.