Name of the Project
Cauchari-Olaroz lithium project.

Location
Jujuy, Argentina.

Project Owner/s
Cauchari is wholly owned by Minera Exar, which is a joint venture company that is, in turn, 62.5%- owned by Lithium Americas and 37.5%-owned by Jiangxi Ganfeng.

Project Description
Cauchari-Olaroz is believed to be the world’s third-largest lithium brine resource and is fully permitted for immediate construction and development.

The Stage 1 definitive feasibility study envisages a conventional brine operation with a yearly production capacity of 25 000 t lithium carbonate.

The project’s mine life is estimated at 40 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value (NPV), at an 8% discount rate, of $1.1-billion and an NPV of $803-million using a 10% discount rate.

The project has a pretax internal rate of return (IRR) of 34% and an after-tax IRR of 28.4%.

Capital Expenditure
$425-million.

Planned Start/End Date
First production is expected in 2020, with a 12-month ramp-up to full production.

Latest Developments
Construction of the Cauchari-Olaroz lithium project remains on track to reach production in 2020, despite unusually heavy rainfall.

The company has completed two evaporation ponds, with the first pond being filled with brine from the production wells.

There are another four ponds under construction.

Construction at the site is on schedule to complete all evaporation ponds, covering 12 km2, during the first quarter of next year. Liner supply and liner installation contracts for the remaining ponds have been awarded.

Further, the site has seven wells in production and three more under construction. By the end of April this year, the project is scheduled to have seven drilling rigs mobilised at site to drill additional production wells.

Contracts have been awarded for earthworks, concrete supply and other key items, and road and platforms construction have been ongoing.

Minera Exar is reviewing proposals for long-lead items and expects to finalise the awards in due course.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
None stated.

Contact Details for Project Information
LAC investor relations, tel +1 778 656 5820 or email info@lithiumamericas.com.