Name of the Project
Sonora lithium project.

Location
Sonora state, Mexico.

Client
Bacanora Minerals.

Project Description
A feasibility study on the project has confirmed the positive economics and favourable operating costs of 35 000 t/y of battery-grade lithium carbonate (Li₂CO₃).

The project has measured and indicated mineral resources estimated at five-million tonnes comprising 1.9-million tonnes of measured resources and 3.1-million tonnes of indicated resources of lithium carbonate equivalent (LCE) and an additional inferred mineral resource of 3.7-million tonnes of LCE.

The feasibility study envisages an openpit operation using continuous miners to mine the ore zones and a truck-and-shovel fleet to remove the waste material. An estimated 37.1-million tonnes of ore will be mined over the planned 19-year mine life, with a lithium grade of 4 151 parts per million and an average stripping ratio of about 3.4:1 over the life-of-mine.

The process plant has been designed to initially process 1.1-million tonnes a year of ore during Stage 1 of the project, subsequently increasing to an estimated 2.2-million tonnes a year at Stage 2, producing 17 500 t/y and 35 000 t/y of Li₂CO₃ respectively.

The plant design also includes a circuit to produce up to 30 000 t/y of potassium sulphate and/or sulphate of potash product through a series of evaporation and precipitation stages.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The feasibility study estimates a pretax net present value, at an 8% discount rate, of $1.25-billion and an internal rate of return of 26.1%, with a simple payback Stage 1 of four years.

Value
Stage 1 of the project is expected to cost about $419.62-million and Stage 2 $380.26-million.

Duration
Construction is expected to start in the first half of 2018, with production targeted for the first quarter of 2020.

Latest Developments
Bacanora Lithium, which previously announced a funding package for the development of the Sonara project, has terminated its proposed $100-million placing, citing “difficult market conditions”.

Instead, the company will focus on completing the front-end engineering design while continuing discussions with several additional parties to secure the remainder of the construction funding.

Bacanora still needs about 48% of the $460-million that is required for Stage 1 production. To date, it has announced equity and debt funding commitments totalling $240-million, including a $150-million senior debt facility with RK Mine Finance and conditional strategic investments from the State General Reserve Fund of Oman, the sovereign wealth fund of the Sultanate of Oman, and from Bacanora's offtake partner, Hanwa, for a combined total of $90-million.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Bacanora Minerals, tel +1 403 237 6122, fax +1 403 237 6144 or email info@bacanoraminerals.com.