Name and Location
Pilgangoora lithium project, Australia.

Client
Altura Mining.

Project Description
The Pilgangoora project has a revised mineral resource estimate of 35.7-million tonnes grading 1.05% of lithium oxide (Li₂O).

The prefeasibility study (PFS) on the project envisages development on the basis of the concentrator plant producing spodumene concentrate of 6% Li₂O from an average feed to a plant of between 1.15% and 1.2% Li₂O.

The base case scenario focuses on the production of 150 000 t/y of spodumene concentrate by processing one-million tonnes of ore feed a year over a 19-year life-of-mine.

However, initial marketing indications have demonstrated that higher spodumene concentrate sales can be achieved, which has resulted in Altura also considering the production case for a two-million-tonne-a-year ore feed. Based on this production case, Pilgangoora could deliver 289 000 t/y of spodumene concentrate over the ten-year mine life.

Net Present Value/Internal Rate of Return
The base case has a net present value, at an 8% discount rate, of A$277-million and an internal rate of return of 42.5%, with a payback of 2.3 years.

Value
The capital cost for the base case is estimated at A$97.6-million.

The capital cost for the two-million-tonne-a-year operation is estimated at A$146.7-million.

Duration
Not stated.

Latest Developments
Altura plans to proceed with the project feasibility as planned and has reached an advanced stage in terms of delivering the definitive feasibility study by the end of the first quarter of 2016.

Meanwhile, Altura has entered into a nonbinding letter of intent with China-based group Lionergy, which will result in the latter buying a minimum of 100 000 t/y and up to 150 000 t/y of lithium spodum-ene concentrate, produced at the Pilgangoora project.

Lionergy has also agreed to subscribe to shares in ASX-listed Altura through a A$3-million placement at 8.1c apiece.

“The placement to Lionergy demonstrates the confidence level shown in the company and our flagship project,” Altura has said in a statement.

Key Contracts and Suppliers
Oreology Consulting (PFS).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Altura Mining, tel +61 8 9488 5100, fax +61 8 9488 5199 or email cosec@alturamining.com.