A recent scoping study has found that the Global Lithium Resources-owned (GL1) Manna Lithium Project in Western Australia, has the potential to become a globally competitive lithium project.
The key highlights of the scoping study include:
- Total Mineral Resource Estimate of 32.7Mt at one per cent lithium oxide, with 58 per cent in the indicated category
- Life-of-Mine (LOM) of ten years with an estimated total production of 2.2Mt of spodumene concentrate
- Concentrator nameplate capacity is 2Mtpa of run-of-mine (ROM) ore, excellent project economics and financial returns
- Cash operating cost for LOM is USD$688/t for a 5.5 per cent lithium oxide spodumene concentrate (SC5.5, FOB)
- Rapid payback of 15 months after first production using a long-term spodumene concentrate price of USD$2,500/t SC5.5 (CIF, China) as forecast by Fastmarkets, an internationally recognised price reporting agency. Low risk open pit mining in a proven mining jurisdiction
- Large scale open pit contract mining
- Process plant based on robust flowsheet using learnings from other lithium producers
- A number of opportunities have been identified to improve mining costs and plant capacity
- Exploration program is being finalised with a focus on extending mine life
- Environmental baseline studies underway with the company well positioned to submit Works Approvals early in 2024
Global Lithium Managing Director, Ron Mitchell, said, the results of the study show the true quality and real potential of the Manna Lithium Project.
“The exploration team worked extremely hard throughout 2022 to provide a solid foundation for the Manna Lithium Project, delivering an upgraded resource of 32.7Mt at one per cent Li2O,” Mr Mitchell said.
“The company also acquired 100 per cent ownership of the project late last year, which enables our shareholders to fully benefit from this outstanding asset.
“The GL1 Board is delighted with the robustness of the Project and its resilience to multiple factors that the resource industry is experiencing here in Western Australia with increasing cost escalation and market conditions.
“The development team will now diligently progress all the necessary technical components and engineering work streams to ensure the project is sufficiently de-risked allowing the Company to progress to a final investment decision in 2024.
“The Board has unanimously resolved for the project to proceed directly to formal feasibility, due to the compelling economics and the continuing strong lithium market fundamentals.”
The key metrics for the Manna Scoping Study include a weighted average lithium concentrate price of USD$2,500/t CIF China, based on Fastmarkets average forecast price from 2026-2032, and an assumed flat AUD:USD exchange rate of 0.70.
It is important to note that changes in these assumptions could impact the project’s economics and financial returns.
The company will proceed to a Definitive Feasibility Study (DFS) on the Manna Lithium Project, aiming to reach a final investment decision in CY2024.
