Lepidico`s Namibian project proves positive

The Phase 1 study is based on a modest-scale commercial plant processing a lithium mica concentrate feed at a rate of 6.9 t/h to produce some 4 900 t/y of nominal battery grade lithium hydroxide monohydrate and a suite of high value and bulk by-products.

Converting other products to lithium carbonate equivalent gave an implied total production of over 7 000 t/y over a mine life of 14 years.

The integrated project is expected to require a capital investment of $139-million for the mine, concentrator and chemical plant, and would have a C1 cash cost of $1 656/t of lithium carbonate equivalent, and an all-in sustaining cost of $3 221/t.

The DFS estimated a post-tax net present value of $221-million and an internal rate of return of 31.3%, with average free cash flow over the full 12 years of production estimated at $49-million.

“The study represents a major milestone in the advancement of the project and enshrines six years of extensive development work across multiple disciplines,” said Lepidico MD Joe Walsh.

“Lepidico’s Phase 1 project represents a unique development opportunity for the production of four valuable alkali metal streams, lithium, caesium, rubidium and potassium. This is enabled by the company’s proprietary process technology, L-Max, coupled with lepidolite as the mineral feed source.

“LOH-Max further differentiates Phase 1 from other lithium projects by providing a single process step solution for the production of lithium hydroxide without the costly and potentially problematic production of sodium sulphate.

“The vertically integrated Phase 1 project has been demonstrated by the DFS to be robust technically, economically and from a sustainability perspective, with the focus now on banking the study to transition the business into development and on into production,” said Walsh.

The ore reserves at Karibib have been estimated at 6.7-million tonnes, grading 0.46% lithium oxide, 2.26% rubidium and 320 parts per million caesium, The project is fully permitted for the redevelopment of two openpit mines feeding lithium mica to a central mineral concentrator, while an environmental and social impact assessment is being undertaken and is scheduled for completion in July.

A number of workstreams for the Phase 1 project will now progress, with a final development decision expected by May 2021.