Name of the Project
Pilgangoora lithium/tantalum project.

Location
Western Australia.

Client
Pilbara Minerals.

Project Description
Pilbara has endorsed the definitive feasibility study (DFS) for the base case two-million-tonne-a-year development of the Pilgangoora project.

The DFS has been based on the project’s updated ore reserve of 69.8-million tonnes grading 1.26% lithium superoxide (LiO₂, or spodumene), 132 parts per million tantalum pentoxide (Ta₂O₅) and 1.04% iron oxide.

The DFS proposes a mining method based on conventional openpit mining, and has been evaluated for truck and hydraulic excavator (backhoe) operations using 4 m  2.5 m flitches for 10 m benches for combination pegmatite mining, and 10 m bench mining for waste mining.

The concentrator plant has been designed to process two-million tonnes a year of ore feed. The nominal capacity of the concentrator has been estimated at 270 t/h.

The flowsheet has been designed to process two-million tonnes a year of ore feed – chemical-grade spodumene at 6% LiO₂ and medium iron; and tantalite concentrate at 30% Ta₂O₅ prefinal dressing.

The concentrator comprises crushing, feed preparation, dense-media separation, gravity separation, grinding, flotation, magnetic separation and dewatering. Wet magnetic separation has been included in the flotation process to reduce iron in the chemical and future technical-grade product.

The Pilgangoora project is expected to produce an average of 314 000 t/y of 6% spodumene concentrate and 321 000 lb/y of tantalite over a mine life of 36 years.

As a result of the significant increase in the Pilgangoora resource and reserve base, Pilbara has also completed a prefeasibility study (PFS) to assess the potential doubling of production from two-million tonnes a year to four-million tonnes a year from Year 3.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has a post-tax net present value (NPV), at a 10% discount rate, of A$709-million and an internal rate of return (IRR) of 38.1%, with a payback of 2.72 years.

The proposed expansion project has an NPV of A$1.17-billion and an IRR of 46.3%, with a payback of 3.05 years.

Value
A$234-million.

Duration
Construction is expected to start in the fourth quarter of this year and commissioning from late 2017.

Latest Developments
The Pilbara Minerals board has taken a final investment decision on the A$234-million Pilgangoora project, with first spodumene and tantalite concentrate shipments scheduled for the second quarter of 2018.

“This is a huge milestone, which marks the beginning of Pilbara’s transformation into a leading global lithium producer. The final investment decision follows hard on the heels of our recent successful fundraising, reflecting our determination to deliver the Pilgangoora project as quickly as possible,” said Pilbara MD Ken Brinsden has said.

Pilbara recently raised A$80-million through a share placement, as well as completing a $100-million bond issue. A planned share purchase plan is expected to raise a further A$15-million.

Meanwhile, the federal government will invest about A$20-million in the Pilgangoora project through the Clean Energy Finance Corporation (CEFC). It is the current government’s first investment in a mining project of this kind in Western Australia.

Developer Pilbara Minerals has welcomed the investment, with MD and CEO Ken Brinsden saying the CEFC investment will form part of the overall funding package for the project.

Key Contracts and Suppliers
RCR Tomlinson (EPC) and OTOC Australia (300-room camp relocation package and the re-establishment works).

On Budget and on Time?
The company has reported that the Pilgangoora project will cost about A$234-million to develop, compared with the original capital cost of A$224-million. The project is on track for commissioning later this year.

Contact Details for Project Information
Pilbara Minerals, tel +61 8 9336 6267 or fax +61 8 9433 5121.