Name of the Project
Sonora lithium project.

Location
Sonora state, Mexico.

Project Owner/s
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.

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 lithium carbonate 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.

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

Planned Start/End Date
Production is targeted for 2021.

Latest Developments
China’s Ganfeng Lithium has expressed its commitment to supporting the financing of the Sonora project.

In terms of the agreement, Ganfeng will invest 14.4-million in Bacanora for a 29.9% stake. At project level, Ganfeng has invested £7.5-million for a 22.5% stake in Sonora. Ganfeng has the option to increase its interest in the project to 50% within 24 months.

Ganfeng submitted the agreements to the relevant authorities in China for approval and said on August 20 that it had received approval from the Ministry of Commerce at the end of July.

The National Development and Reform Commission has processed the second approval and Gangeng expects the final approval from the State Administration of Foreign Exchange “in the coming weeks”. 

Sonora forms part of Ganfeng's strategy of growing to a 100 000 t/y lithium producer.

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.