Name of the Project
Grota do Cirilo project dense-media separation (DMS) production plant.

Location
Minas Gerais, Brazil.

Project Owner/s
Sigma Lithium Resources.

Project Description
An updated feasibility study has demonstrated that Phase 1 of the project is financially robust, even as a standalone project.

The project has proven and probable reserves of 11.8-million tonnes grading 1.55% lithium oxide for 452 000 t of lithium carbonate equivalent.

Phase 1 will involve material from the Xuxa deposit (the Phase 1 mine) to be processed by Sigma Lithium’s green tech production plant (the Phase 1 plant), which, in turn, will produce battery-grade sustainable lithium, creating a fully integrated lithium operation.

The economic model proposes an average production plant feed of 1.5-million tonnes a year, resulting in production of about 230 000 t/y of 6% lithium concentrate over an eight-year life-of-mine.

While the base case is based on production of 6% lithium concentrate, Sigma has the option to deliver additional production of battery-grade sustainable lithium, maintaining specifications in line with current lithium markets of 242 000 t/y at 5.7% lithium oxide, 251 000 t/y at 5.5% lithium oxide and  265 000 t/y at 5.2% lithium oxide.

Sigma has also reported maiden mineral reserve estimates of 21.8-million tonnes grading 1.37% lithium oxide for 730 000 t lithium carbonate equivalent.

Metallurgical tests on Phase 2 have reinforced the confidence that a 6% lithium oxide concentrate can be produced at an overall lithium stage recovery of 60% while maintaining the coarseness of the lithium concentrate (crush size of  -9.5 mm).

These results validate that the spodumene mineralisation from the Phase 2 deposit can be processed into battery-grade sustainable lithium in a similar manner to spodumene ore from the Phase 1 mine, without requiring major flowsheet modifications.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $1.6-billion and an internal rate of return of 424%, with a payback of four months.

Capital Expenditure
Phase 1 will cost an estimated $123.1-million to implement.

Planned Start/End Date
Not stated.

Latest Developments
None stated.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Sigma Lithium Resources, tel +55 11 2985 0089 or email contact@sigmaca.com/Investors: ir@sigmaca.com.