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Patriot Battery Metals (ASX:PMT) on Thursday reported a Preliminary Economic Assessment (PEA) supports the notion the company’s Shaakichiuwaanaan Project in Canada could become a major north American supply hub.
Targeting up to 800Ktpa of spodumene concentrate, the PEA – while early stage and not to be considered final – includes plans to build a processing facility on-site. The company noted the study is “conceptual.”
To be sure, that much spodumene would make Patriot the fourth largest concentrate producer globally.
The company’s first target area of interest, the CV5 pegmatite, would be the starting gun geological asset on-site from which ore would be pulled. The higher grade Nova zone is looking like more of an underground mining operation.
The PEA whacks a value of $4.7B on the project with a 38% rate of return seeing payback at 3.6 years. The study assumes an average lithium price of US$1,375 per tonne.
Patriot expects this would – all things in order – generate around $8B in revenue. Establishing the first 400Ktpa of spodumene concentrate capacity would cost the company $760M; stage 2 at just over $500M.
“The PEA outlines a staged development pathway for Shaakichiuwaanaan, commencing with an initial 400 ktpa production capacity which is intended to allow us to leverage the key competitive advantages of this world-class deposit to provide lithium raw materials in emerging western markets,” Patriot CEO Ken Brinsden said.
PMT last traded at 52cps.
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