Lithium Americas Corp. (TSX:LAC) (NYSE:LAC) is expanding the resource at its Thacker Pass lithium project in Nevada, USA, and is awaiting a final permit decision from the state of Nevada. The company announced that it has completed a preliminary economic assessment (PEA) for the project, which shows that the Thacker Pass project has the potential to be a low-cost, long-life producer of battery-grade lithium hydroxide.
The PEA estimates that the project has a post-tax net present value (NPV) of US$1.2 billion and an internal rate of return (IRR) of 23%. The PEA also estimates that the project has a capital cost of US$1.3 billion and an operating cost of US$3,700 per tonne of lithium hydroxide produced. The project is expected to have a mine life of 40 years and produce an average of 25,600 tonnes of lithium hydroxide per year.
Lithium Americas also announced that it has completed an updated resource estimate for the project, which shows that the project has an indicated mineral resource of 40.9 million tonnes of lithium carbonate equivalent (LCE) and an inferred mineral resource of 15.2 million tonnes of LCE. The company is currently awaiting a final permit decision from the state of Nevada, which is expected to be issued in the second quarter of 2021. If the permit is granted, Lithium Americas plans to begin construction of the project in the second half of 2021 and begin production in 2024.
Lithium Americas CEO Tom Hodgson said: “The PEA confirms the potential for Thacker Pass to be a low-cost, long-life producer of battery-grade lithium hydroxide. We are now focused on securing the final permit from the state of Nevada, which is expected to be issued in the second quarter of 2021. If the permit is granted, we plan to begin construction of the project in the second half of 2021 and begin production in 2024.” Thacker Pass is located in northwestern Nevada and is one of the largest known lithium deposits in North America.
The project covers an area of approximately 25,000 hectares and is estimated to contain more than 1.5 million tonnes of LCE. Lithium Americas is a leading lithium producer with projects in Argentina and Nevada. The company is focused on developing its Cauchari-Olaroz project in Argentina, which is expected to become one of the world’s largest lithium producers. The company is also advancing its Thacker Pass project in Nevada, which is expected to become a low-cost, long-life producer of battery-grade lithium hydroxide.
