Name of the Project
Goulamina lithium project.

Location
Southern Mali.

Client
Birmian.

Project Description
The Goulamina project has a mineral resource estimated at 32.9-million tonnes grading 1.37% lithium oxide (Li2O) at a 0.4% cutoff.

A prefeasibility study (PFS) on the project has confirmed the technical and economic viability of Goulamina, with four possible development scenarios considered.

Scenario 1: a small pit at one-million tonnes a year (base case).

Scenario 2: a large pit at two-million tonnes a year for the life-of-mine.

Scenario 3: a small pit at one-million tonnes a year for the first three years of production and two-million tonnes a year thereafter.

Scenario 4: a large pit at one-million tonnes a year for the first three years of production and two-million tonnes a year thereafter.

A fifth scenario – the secondary processing of 56% of the available spodumene concentrate to produce battery-grade lithium carbonate for sale, and selling the residual spodumene concentrate – has also been considered. 

This scenario is based on a concept study undertaken on the secondary processing of spodumene-to-lithium carbonate.

Based on the different scenarios, the PFS envisages a project operational mine life of 8.8 to 14 years, processing between 14-million tonnes at 1.39% Li2O and 20.6-million tonnes at 1.31% Li2O. The plant will produce a 6% Li2O concentrate at an average recovery of 80.7%, demonstrated by metallurgical testwork.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Based of the five possible scenarios, the project has a net present value (NPV), at a 10% discount rate, of between $85.6-million and $126.4-million and an internal rate of return of between 21% and 22%.

The inclusion of secondary processing will lift the project’s NPV to $637.9-million.

Value
The estimated capital cost ranges from $86.9-million to $412-million.

Duration
For the purposes of the PFS, it is assumed that project construction will start in mid-2019, with initial production expected in early 2021 and a six-month production ramp-up period.

Latest Developments
Birimian has reported a number of cost cuts at its Goulamina project, following an optimisation of the PFS.

Transport and handling costs have been reduced by an estimated 47%, from $187/t to $100/t, while power costs could be reduced by at least 25% and fuel costs by about 15%.

The company received advice from transport contractors regarding the reliability and capacity of Mali’s rail links to port, with the company deciding to replace the proposed hybrid road-rail transport model with a road-only transport model to deliver the concentrate to port.

Birimian has said that while plans have been announced to significantly upgrade the railway links from Mali to Senegal and between Burkina Faso and Côte d’Ivoire, these projects will not be completed within a timeframe that will allow for the consideration of the Goulamina project

The adoption of a road-only transport option will result in a capital cost saving of $3.1-million for the project.

As a result of the cost saving initiatives, Birimian is on track to meet its target of achieving an operating cost of less than $300/t in the revised PFS.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Birmian, tel +61 8 6382 2226 or email info@birmian.com.