Industria
Lithium South Development Corporation: Preliminary Economic Assessment Filed on SEDAR
The financial model shows a Net Present Value after tax of US$938 million , an after-tax Internal Rate of Return of 31.6%, and a 2.5-year payback.
Company Founder President and CEO, Adrian F. C. Hobkirk is quoted, "We are very pleased to have achieved this important milestone for the HMN Li Project. The robust economics and room for expansion indicate a promising future for Lithium South."
Lithium South owns 100% of the HMN Li Project located in Salta and Catamarca Provinces, Argentina , in the heart of the lithium triangle. The Salar del Hombre Muerto has a history of lithium production, with Arcadium Lithium (as a result of the Alkem and Livent merger) in operation for over twenty-five years, in an area just south of the HMN Li Project. The HMN Li Project is surrounded by a US$4 billion lithium development under construction by POSCO (Korea) and the Sal de Vida Project under development by Arcadium. Exploration work to date has delineated a National Instrument 43-101 compliant 1,583,200 tonne Lithium Carbonate Equivalent ("LCE") Resource (Note 1) on the Alba Sabrina, Natalia Maria , and Tramo claim blocks, three of five non-contiguous blocks that make up the HMN Lithium Project. With pumping well installation underway, Lithium South is transitioning from being a lithium explorer to becoming a lithium developer.
Peter Ehren is an independent Lithium Consultant. He has more than two decades of experience in the industry. He started his interest in the lithium business during his master's thesis at Technical University of the Delft where he investigated for BHP Minerals the recovery of lithium from geothermal brine ( Salton Sea ), applying a Direct Lithium Extraction ("DLE") technology. After his thesis he worked for SQM as a process engineer and R&D manager till 2007. Since 2007 he started to work as independent consultant in the lithium, boron and potassium industry. He is a world expert in solar evaporation systems, phase chemistry and process developments. Additionally, his experience covers product applications, OPEX and CAPEX estimation, process simulations, engineering, R&D and product development. He has worked in lithium basins and production facilities worldwide. He is a Chartered Professional (AusIMM) and QP for NI 43-101 and JORC.
Dr. Mark King , Ph.D., F.G.C., P.Geo., of Groundwater Insight, Inc., is the QP for resource estimation components of the PEA., as such term is defined by NI 43-101. Dr. King has extensive experience in salar environments and has been a QP on numerous lithium brine projects, ranging from early exploration to production. Dr. King is independent from the Company and has reviewed and approved the technical information mentioned in this press release.
Richard Goodwin , P.Eng., Project Manager for JDS Energy and Mining, Inc., is independent of Lithium South and a QP as defined under Canadian National Instrument 43-101. Mr. Goodwin is a mining engineer and study manager with over 30 years of experience managing mining operation and projects in various commodities such as base metals, precious metals, PGMs, and diamonds in various domestic and international locations. Mr. Goodwin is responsible for the PEA results, participated directly in the production of this press release, and directly related information in this press release, and approves of the technical and scientific disclosure contained herein.
Adrian F. C. Hobkirk
President and Chief Executive Officer
Investors / Shareholders call 855-415-8100 / website: lithiumsouth.com
Note 1: A report titled, , Mark King , PhD, PGeo, Peter Ehren , M.Sc, MAusIMM, September 5th, 2023 .
This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities and Exchange Act of 1934, as amended. Except for statements of historical fact relating to the Company, certain information contained herein constitute forward-looking statements. Forward-looking statements are based upon opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors which could cause actual results to differ materially from those projected in the forward-looking statements. The reader is cautioned not to place undue reliance on forward- looking statements. We seek safe harbor.
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