EXPLORATION & DEVELOPMENT

Zeus PEA thrills Noram Lithium

Noram Lithium is “thrilled” with the preliminary economic assessment for its flagship Zeus project which is within 2km of the US’ only lithium producer, Albemarle’s Silver Peak.

Staff reporter
 Noram Lithium’s Zeus project in Nevada

Noram Lithium’s Zeus project in Nevada

The company said the pit's first 11 phases had enough resources for 40 years of production at a 17,000tpd rate, with the overall resources providing enough ore for more than 190 years of production at the same rate.

The PEA put initial capex at US$528 million, after-tax NPV8 at $1.3 billion and IRR at 31%.

It outlined a 40-year mine in Nevada's Clayton Valley, with a low operating cost of $3,355.30 per tonne lithium carbonate equivalent, with the study using a base case market price of $9,500/t LCE.

Lithium prices have reached new highs this year, around $30,000/t, amid strong demand from the battery sector and a forecast supply deficit.

"This study represents the most significant milestone to date for Noram and establishes us among limited peers as the newest low cost, high-grade, near-term lithium producer in North America," president Sandy MacDougall said.

"We are excited as we enter 2022 pushing aggressively towards the completion of a prefeasibility study."

The company had about C$3 million in cash and equivalents at July 31.

Its shares (TSXV: NRM) have spanned 38c-$1.25 over the past year and closed up 9.9% yesterday to $1, valuing it at $74.5 million (US$59 million).

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