The report provides support to proceed with development plans.
Advantage Lithium Corp. (AAL:TSX.V; AVLIF:OTCQX) announced the filing on SEDAR of its Preliminary Economic Assessment (PEA) report following summary results announced on August 14, 2018.
The company stated that the PEA report provides support for Advantage Lithium to “proceed with development plans for 20ktpa capacity stand-alone Lithium Carbonate plant located at its Cauchari Joint-Venture project in the province of Jujuy, Argentina.”
The company noted the following key points:
David Sidoo, CEO and founder of Advantage Lithium, commented, “We are very pleased that we have advanced our Cauchari JV from exploration through to a completed PEA in just over a year. The positive results first summarized in our news release of August 14 are now backed up with an independent study report that reflects the rapid advancement of the project engineering supported by Worley Parsons.”
Sidoo noted that this “confirms the potential of Cauchari JV as a robust project with operating costs expected to be in the lower quarters of the industry cost curve.”
The company also reported that it is progressing on schedule with phase 3 drilling and well testing programs. “The results from this work are required to support resource to reserve conversion and to achieve our target Definitive Feasibility Study which will commence in early October and planned for completion by Q2 2019,” Sidoo stated.
The company noted that the economic results for the project have been updated to reflect an improvement in the tax regime in Argentina with lower tax rates that were not reflected in the initial PEA announcement of August.
“The economic analysis is based on brine grades and lithium volume estimated from the company’s published Inferred Mineral Resource only,” stated the company. “Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no certainty that the Cauchari project evaluation envisioned by the PEA will be realized. The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.”
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