Lithium Power International (LTHHF)

Lithium Power International (LPI) is a pure-play lithium company focused on the development of Chile’s next high-grade lithium mine. The Maricunga JV, in which LPI holds a 51% interest, is the highest quality pre-production lithium brine project in South America and has one of the world’s highest-grade lithium resources at 1,167 mg/l lithium and 8,500 mg/l potassium. The 2019 JORC and NI 43-101 compliant resource estimate for the deposit totals 2.07 Mt LCE now all classified as Measured or Indicated & 5.38 Mt KCl from surface to 200m depth. Significant potential for resource expansion lies in an exploration target of 1.0 – 2.5 Mt of LCE and 3 – 6.6 Mt of KCl between 200m and 400m depth. The exploration target has been drilled to 360m and remains lithium enriched and open at depth.

On February 19th, 2018 LPI announced the production of its first lithium carbonate sample from the Maricunga brine project. The sample has a purity of 99.4% lithium carbonate, consistent with battery grade Lithium Carbonate production such as by Albemarle and SQM in Chile.

In September 2018, LPI, through its JV Company Minera Salar Blanco S.A. (MSB), submitted the Environmental Impact Assessment Report (EIA) for the Maricunga Project to the Chilean Environmental Authority, Servicio de Evaluación Ambiental (SEA).

On 22 January 2019, LPI announced the completion of its +/-15% accuracy Definitive Feasibility Study (DFS) by Tier-1 engineering consultancy WorleyParsons.

On 4 February 2020, LPI received environmental approval for the Maricunga Project. Construction is expected to commence by the end of Q3 2020.

Lithium demand, driven by its use in automobile applications, is projected to grow 530% by 2030. Development projects to meet future demand growth are limited and new supply coming on stream is slow due to permitting and construction constraints.

Fast-tracking the high-grade Maricunga lithium brine project to production with a deep drilling program, with the view of increasing reserve, resource and community in 1Q21 ahead of the updating of the DFS, will be a key driver in increasing LPI’s future shareholder value. Projected low operating costs are expected to ensure long term profitability during potential future supply expansion. Success of the Maricunga JV is driven by LPI’s highly experienced and proven board, management and technical team with a history of success in mining, lithium exploration and strategic transactions.

Plans & Latest Developments

LPI has completed its DFS and submitted its EIA, followed by the completion of its DFS in 4Q18. Test work has produced the first battery grade Li2CO3 sample, meeting commercial high quality specifications (Feb. 19).

Maricunga Project, Chile

 

Location:

Atacama Region, Chile

 

Ownership:

51% LPI

 

Status:

PEA 4Q17, Definitive Feasibility Study 1Q19, EIA 1Q20

 

Resources:

2.07 Mt LCE at 1,167 mg/l & 5.38 Mt KCI at 8,500 mg/l

 

 

Highlights

 

 

• Located within the “Lithium Triangle” in northern Chile, home to the largest and highest quality lithium brine deposits
  Highest quality pre-production lithium brine project in South America and the second highest-grade lithium brine resource at 1,167 mg/l lithium and 8,500 mg/l potassium
  Most advanced project in Chile outside of the mine expansions by SQM and Albemarle
  Fully funded development-stage project with financial investment decision to commence construction expected in 2020

 

 

Overview

 

The Maricunga project lies adjacent to the Chile-Argentina Highway 31, 170 km northeast of Copiapo and 250 km from the port of Caldera. A 23kV power line crosses the property and is connected to Chile’s 220kV power grid.

 

Maricunga is a high-quality brine resource with high brine grades, high flow rate characteristics and high drainable porosity and permeability. The 2019 JORC and NI 43-101 compliant resource estimate for the deposit totals 2.07 Mt LCE & 5.38 Mt KCl from surface to 200m depth. Significant potential for resource expansion lies in an exploration target of 1.0 – 2.5 Mt of LCE and 3.0 – 6.6 Mt of KCl between 200m and 400m depth. The exploration target has been drilled to 360m and remains lithium enriched and open at depth.

 

Investor DFS Report

 

Download

 

Investor PEA Report

 

Download

 

 

• The Maricunga Lithium Brine Project’s Definitive Feasibility Study (DFS) supports 20,000 tonnes per annum (t/a) production of lithium carbonate (LCE) over 20 years.
  Project NPV is estimated to be US$1.302B before tax at 8% discount rate, providing an IRR of 29.8%.
  Payback in 3.5 years on a 2-year ramp up period.

 

 

Virtual Site Tour

 

The Maricunga Virtual Mine Site Tour provides an in-depth view and main stages of the milestones so far achieved

 

 

 

 

Preliminary Economic Assessment – Valuation Update

 

 

 

Current Program

 

The first lithium carbonate sample has been produced from Salar de Maricunga (Feb 18) at GEA facilities in Germany. The brine was concentrated at the pilot plant solar evaporation ponds at the Maricunga site for almost 12 months, and subsequently treated at the GEA lab in Duisburg, Germany, to purify it and precipitate lithium carbonate suitable for battery grade specification similar to those produced in Chile by Albemarle and SQM. The process route is based on conventional technology and comes with the know-how that enables the process to scale up to commercial production. The purity of the product is above 99.4%.

 

LPI is fast-tracking the development of Maricunga and has completed it’s Definitive Feasibility Study in January 2019.

 

The project has the potential for a multi-decade mine life in its currently defined resource to 200m depth, with the possibility for substantial resource expansion in an exploration target at 200-400m depth.

 

The Project’s Environmental Impact Assessment (EIA) was approved in February 2020. Project financing is targeted in 2020 and the start of construction at the end of Q321.

 

 

 

Lithium Power International (ASX:LPI) secures environmental approval for Maricunga