Maricunga JV, Chile
Location:
Atacama Region, Chile
Ownership:
50% LPI
Status:
PEA 4Q17, Feasibility Study 2Q18
Resources:
2.15Mt LCE at 1,160 mg/l & 5.7 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 1,160mg/l lithium and 8,500mg/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 2019
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 2017 JORC and NI 43-101 compliant resource estimate for the deposit totals 2.15 Mt LCE & 5.7 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 (complete details are provided in resource tables and technical reports).
Investor PEA Report
- The Maricunga Lithium Brine Project’s Preliminary Economic Assesment (PEA) supports 20,000 tonnes per annum (T/a) production of lithium carbonate (LCE) and 74,000 T/a potassium chloride (KCI) fertiliser over 20 years.
- Project NVP is estimated to be US$1.049B before tax at 8% discount rate, providing an IRR of 23.4%.
- Payback in 2 years and 11 months based 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
LPI is fast-tracking the development of Maricunga. Submission of the Environmental Impact Assessment (“EIA”) is targeted for 1Q18, followed by a definitive feasibility study (“FS”) targeted for completion in 3Q2018. A lithium carbonate (“Li2CO3”) and potassium chloride (“KCl”) process flow sheet has been defined.
The first lithium carbonate sample has been produced from Salar de Maricunga (Feb 19) 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 come with the know-how to be able to scale up to commercial production. The purity of the product is above 99.4%.
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.
Permitting and government approvals are expected by 2Q19, at which time LPI will make a production decision. Project financing is targeted to follow in 2019 and start of construction in 2020.
