Birimian Ltd.'s pre-feasibility study for its Goulamina lithium project in southern Mali estimated a net present value, discounted at 10%, of between US$85.6 million and US$126.4 million and a 21% to 25% internal rate of return.
The capital cost is estimated between US$86.9 million and US$142.0 million, including contingency, according to the Oct. 4 release.
If secondary processing is included, the expected net present value will increase to US$637.9 million and the internal rate of return to 39%, for additional capital costs of US$221 million for concentrate-only scenarios.
The study estimated a project operational mine life of nine years to 14 years, processing between 14 million tonnes at 1.39% lithium oxide and 20.6 million tonnes at 1.31% lithium oxide.
The plant will produce a 6% lithium oxide concentrate production at an average recovery of 80.7%.
The preliminary feasibility study, based on an indicated mineral resource, has an overall estimate accuracy of 25%.
At a 0.4% lithium oxide cut off, the Goulamina mineral resource stands at 25.3 million tonnes at 1.37% lithium oxide for 347,000 contained tonnes in the indicated category, and 7.6 million tonnes at 1.37% lithium oxide for 104,000 contained tonnes in the inferred category.
Birimian noted that the project is "sensitive to scale" and the net present value may increase with an expansion of the existing mineral resource.
The company will now undertake a definitive feasibility study over Goulamina to evaluate potential for different development scenarios.