Arizona Lithium Limited
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What Are Arizona Lithium's Key Financial Metrics of the Prairie Lithium Project?
PRAIRIE LITHIUM PFS: Setting New Standards in Lithium Production Efficiency
The latest Preliminary Feasibility Study (PFS) for the Prairie Lithium Project, situated in the prolific Williston Basin of Saskatchewan, Canada, has unveiled groundbreaking findings. This extensive project, spearheaded by Arizona Lithium Limited, a major player in North American lithium development, showcases an extremely low operating cost of $2,819 USD per tonne for Lithium Carbonate Equivalent (LCE). This positions the Prairie Project as one of the most cost-effective global lithium ventures.
Project Overview and Economic Viability
The PFS is centered around an initial Phase One production target of 6,000 tonnes per annum (tpa) of LCE. This robust framework not only confirms the project's excellent economic potential but also sets a high benchmark in the lithium industry.
Financial Highlights and Projections
Key financial metrics like the pre-tax Net Present Value (NPV) of US$448 million and an Internal Rate of Return (IRR) of 23. 9% further reinforce the project's solid economic standing.
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These figures are predicated on a conservative long-term lithium price of US$21,000/t, as analyzed by Global Lithium LLC, a leading name in lithium market analytics.
Strategic Resource Utilization
The resource upgrades have significantly enhanced the project's value. With an indicated resource of 4. 5 million tonnes of LCE, the planned 20-year commercial operating life utilizes less than 3% of this resource, indicating a substantial growth and expansion potential.
Capital Expenditure and Infrastructure Development
Arizona Lithium estimates a capital expenditure of US$290 million, plus contingency, for constructing and commissioning the project's first phase. The Total Installed Cost (TIC) for each additional well-pad, crucial for expanding production, is estimated at US$70 million.
Phased Production Increase
The initial production target of 6,000tpa is just the start. Arizona Lithium aims to incrementally increase production to 20,000-25,000tpa in Phase Two, with further expansions in Phase Three, replicating the economic efficiency of the initial module.
Technological Innovation and Environmental Responsibility
The integration of Direct Lithium Extraction (DLE) technology during the Pilot Plant phase has significantly contributed to the project's economic feasibility. This cutting-edge technology offers enhanced efficiency and environmental sustainability.
Sustainable Development Goals
The Prairie Lithium Project is designed to minimize the environmental footprint, focusing on reduced freshwater usage, land impact, and waste generation, aligning with Arizona Lithium's commitment to sustainable development.
Management and Expert Insights
Paul Lloyd, the Managing Director of Arizona Lithium, expressed confidence in the project's future, emphasizing its potential to deliver quality lithium at low operating costs. Brett Rabe, the Chief Technology Officer, highlighted the technological advancements and the team's efforts in realizing the project's potential.
Expert Validation
The project's technical and financial aspects have been rigorously reviewed and validated by industry experts, including Gordon MacMillan P. Geol. and Kyle Gramly PE, ensuring compliance with industry standards and regulatory requirements.
The Prairie Lithium Project, with its strategic location, innovative technology, and strong economic foundation, is set to revolutionize the lithium industry. Arizona Lithium's commitment to sustainable and efficient lithium production marks a significant step forward in meeting the growing global demand for lithium, a critical component in the renewable energy and electric vehicle sectors. As the project progresses towards production in 2025, it stands as a testament to the potential of sustainable and economically viable mineral extraction.
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