PEA Shows Rock Tech Lithium's Georgia Lake Project with an NPV of $312 million, IRR of 62.2%
October 02 2018 - 7:34AM
InvestorsHub NewsWire
Rock Tech Lithium Presents Results of First Economic Assessment:
Main Resource Zone at Georgia Lake Property with Net Present Value
of $312 million, IRR of 62.2%
Vancouver, BC, Canada --
October 02, 2018 -- InvestorsHub NewsWire -- Rock
Tech Lithium Inc. (the "Company" or “Rock Tech”) [TSX-V: RCK; Frankfurt: RJIB (WKN:
A1XF0V)] is pleased to announce
the results of a Preliminary Economic Assessment (“PEA”) at its
flagship 100%-owned Georgia Lake lithium property in the Thunder
Bay Mining District of Northwest Ontario, Canada. Rock Tech engaged
DMT GmbH & Co. KG (“DMT”) to complete the PEA.
The results of the PEA include a
pre-tax Net Present Value (“NPV”) of $312 million at a discount
rate of 8% and a pre-tax Internal Rate of Return (“IRR”) of 62.2%.
The PEA focused on only a portion of the Georgia Lake project
centered around an area referred to as the Nama Creek Main Zone,
excluding additional inferred resources the Company has defined on
other areas of the property as included in the updated resource
estimate disclosed on June 27, 2018 and filed on SEDAR on August
10, 2018. In the PEA, DMT covered all relevant topics for the
development of the mine and the production of spodumene
concentrate, including project infrastructure, mine design and
operations, recovery, processing and reclamation.
“The completion of the PEA is a key
milestone in the development of our Georgia Lake lithium property,”
said Martin Stephan, Chief Executive Officer of Rock Tech. “We are
pleased that the results confirm our optimism with respect to the
project and confirm for our shareholders that their investments in
advancing this project have been a success. Although the PEA
focused only on a portion of our NI 43-101 resource estimate, it
shows the real value of our company’s assets and proves the
excellent profit potential with an expected annual EBITDA of $64
million (CAD) which is nearly double the current market
capitalization.”
Highlights from the PEA, with the
base-case chemical grade spodumene concentrate of 6.2% lithium
oxide (“Li2O”) price of US$800 per tonne for the first five years
and US$850 per tonne for the next six years and an exchange rate of
$1.30 USD/CAD, are as follows (in CAD-$):
- Life of Mine Revenue is $1,136
million;
- Annual EBITDA is $64.2
million;
- Pre-production capital is
$65.3;
- Sustaining capital is $62
million;
- Pre-tax NPV (8% discount rate) of
$312 million and an IRR of 62.2%;
- Post-tax NPV (8% discount rate) of
$210 million and an IRR of 48.1%;
- Positive cash flow is realized in
Year 3 of the project;
- 11-year mine life including open
pit and underground operations for the Main Resource
Zone;
- Total production of 1.1 million
tonnes of chemical grade spodumene concentrate of 6.2% Li2O (96.000
t/a).
Summary of Results:
All scientific and technical information in this news release was
reviewed and prepared under the supervision of Karl-Stephan Peters,
EurGeol 787, an independent Qualified Person to Rock
Tech.
Rock Tech will file the Preliminary
Economic Assessment on the System for Electronic Document Analysis
and Data Retrieval (“SEDAR”) within 45 days of this news
release.
About DMT GmbH & Co.
KG
DMT is a global consortium,
providing interdisciplinary services in the Mining, Oil & Gas,
Civil Engineering & Infrastructure and Plant Engineering
markets with a client roster that includes Anglo American, BHP
Billiton, OMV, E.ON, Schlumberger, De Beers and leading institutes
such as The World Bank and the Asian Development Bank. DMT occupies
30 offices worldwide and belongs to the German certification agency
TÜV NORD GROUP. To date, DMT has completed several thousand
projects in over 150 countries, working in over 25 countries in a
typical year.
About Rock Tech Lithium:
Rock Tech Lithium is an exploration
company focused on acquiring and exploring properties in the field
of lithium. The Georgia Lake Lithium project develops a
lithium-rich pegmatite vein deposit for the purpose of mining. The
deposit was discovered in the Thunder Bay Mining district in
northwestern Ontario/Canada, close to the Lake Superior, as early
as 1955. Rock Tech Lithium has been working increasingly on the
property since 2016 – in a market environment, where the trend for
electric cars on the international market has been rising steeply
for years. Analysts expect that more than 25% of newly sold cars in
2025 will be electrified, with the demand for batteries and
therefore battery metals such as lithium expanding
rapidly.
On behalf of the Board of Directors of
the Company,
"Martin
Stephan"
Martin Stephan
Director, Chief Executive Officer
For further information,
please contact:
Brad Barnett
Chief Financial Officer
Rock Tech Lithium Inc.
777 Hornby Street, Suite 600
Vancouver, B.C., V6Z 1S4
Telephone: (778) 358-5200
Facsimile: (604) 670-0033
Email: bbarnett@rocktechlithium.com
Neither
TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
Statements included in this announcement,
including statements concerning our plans, intentions and
expectations, which are not historical in nature are intended to
be, and are hereby identified as, "forwardlooking statements".
Forwardlooking statements may
be identified by words including "anticipates", "believes",
"intends", "estimates", "expects" and similar expressions.
The Company cautions readers that forwardlooking statements, including without limitation
those relating to the Company's future operations and business
prospects, are subject to certain risks and uncertainties that
could cause actual results to differ materially from those
indicated in the forwardlooking statements.
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