An independent feasibility study on the development of Sigma Lithium Resources Corp.'s Xuxa deposit, part of its Grota do Cirilo project in Brazil's Minas Gerais state, said the mine will produce an "environmentally responsible" lithium concentrate.
The study outlined a posttax net present value of US$249 million, discounted at 8%, with a 43.2% internal rate of return and a 3.1-year payback period.
The development of a 1.5-million-tonne-per-annum open-pit mine and a lithium concentrator at Grota do Cirilo is estimated to cost US$98.4 million, including a 10% contingency.
Over a 9.2-year mine life, the project will annually produce about 220,000 tonnes of coarse green and high-quality battery grade 6% lithium oxide concentrate with low impurities at operating costs of US$238 per tonne and total cash cost insurance and freight China of US$342 per tonne.
According to the Oct. 1 release, the Xuxa plant will be powered by hydroelectricity, and over 90% of the water used in processing will be recycled. The plant tailings will be managed using dry-stacking technology.
The study forecast a life-of-mine revenue of US$1.4 billion and an EBITDA of US$690 million over the mine life, at an assumed 2021 nominal arms-length price of US$650 per tonne for 6% lithium oxide concentrate cost insurance and freight at China port.
The feasibility study is based only on the current open-pit mining plan without contemplating an underground mine plan, the company noted.
The Xuxa Mine open-pit proven and probable mineral reserve stands at 13.8 million tonnes at 1.46% lithium oxide.
Sigma received environmental licenses for construction and installation of its lithium commercial production plant from the environmental authority of Minas Gerais state in June.
