Lithium Royalty Corp. Provides Update on Winsome Resources Scoping Study for the Adina Lithium Project
“Lithium Royalty Corp. congratulates Winsome Resources on the release of its maiden scoping study on the
Key Highlights of the Scoping Study
-
Low Start-Up Capital Cost of
US$260 Million –The Adina Project benefits from an estimated start-up capital cost of approximatelyUS$260 million , mainly due to Winsome’s ability to leverage the existing infrastructure at the nearby Renard mine, over which Winsome has secured an option to acquire out of insolvency. This exclusive option to repurpose and use the Renard facility offers significant cost savings to Winsome, avoiding the need to incur higher expected construction costs associated with a greenfield development at theAdina Project . The capital efficiency of this project positions Adina to potentially be one of the most attractive lithium projects inNorth America . -
Opportunity for Growth – The scoping study for the
Adina Project contemplates mining 31.2Mt of indicated mineral resource from the total indicated mineral resource of 61.4Mt and 4.6Mt of inferred mineral resource from the total inferred mineral resource of 16.5Mt. Furthermore, Winsome anticipates upgrading its mineral resource estimate in the first half of 2025, providing potential growth to the mineral resource for theAdina Project . The scoping study assumes 1.7Mtpa of milled annual production for theAdina Project , below the 2.2 Mtpa nameplate capacity for the state-of-the-art fully-covered DMS-only processing facility at Renard. Upside to these study assumptions has the potential to increase the mine life and production throughput at theAdina Project . -
Competitive C1 Operating Cost of
US$598 /t (FOB) and AISC ofUS$693 /t (FOB) – The Winsome scoping study estimates a C1 operating cost ofUS$598 per tonne (FOB) of spodumene concentrate over the 17-year active production period of theAdina Project . Additionally, the scoping study contemplates using a simple dense media separation processing method, which Winsome expects will further reduce operating costs while enabling Winsome to produce a high-quality, coarse concentrate. Winsome’s study also forecasts All-In Sustaining Costs (AISC) averagingUS$693 per tonne (FOB) over the active production period for theAdina Project . This includes all expenses related to sustaining capital, mining, processing, and transportation costs. The estimated AISC highlights the potential for strong cash flow from the project, and suggests that theAdina Project has the potential to be financially resilient, even in fluctuating lithium commodity price environments. -
Creation of 600 Jobs in the Province of
Québec – Winsome anticipates thattheAdina Project will create approximately 600 jobs during its operational phase, and contribute to economic development and employment in theEeyou Istchee James Bay region and the Province ofQuébec . Winsome has reiterated that it is committed to working closely with local stakeholders, including First Nations communities, to enable the project to deliver long-term benefits for the region. -
Meaningfully Positive Implications for LRC – Winsome’s scoping study for the
Adina Project underscores the benefits of LRC’s strategy of targeting assets that are high-grade, low cost, with low levels of technical complexity. Winsome has referenced on page 14 of the scoping study that undiscounted gross royalty payments to LRC over the 21-year mine life have the potential to reach approximatelyUS$300 million . The pit design in Winsome’s scoping study incorporated the 4.0% GOR royalty that LRC owns over theAdina Project .
|
Figure |
Units |
Renard plant - Targeted throughput |
1.7 |
Mtpa |
Renard plant - Nameplate throughput capacity |
2.2 |
Mtpa |
Production target - Indicated mineral resource |
31.2 |
Mt |
Indicated mineral resource |
61.4 |
Mt |
Production target - Inferred mineral resource |
4.6 |
Mt |
Inferred mineral resource |
16.5 |
Mt |
Mine life |
21 |
Years |
Production target - Average annual concentrate production |
256 |
ktpa |
Projected LRC GOR royalty undiscounted cashflow |
|
USD millions |
About
LRC is a lithium-focused royalty company organized in
Forward-Looking Information
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation, including statements with regard to the potential expected from the royalty acquired from Winsome Resources Limited (“Winsome”). Forward-looking information involves known and unknown risks and uncertainties, many of which are beyond our control, that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, those described under “Risk Factors” in LRC’s Annual Information Form dated
View source version on businesswire.com: https://www.businesswire.com/news/home/20240918072110/en/
Contact Information for Inquiries:
Investor Relations
(647) 792-1100
jonida@lithiumroyaltycorp.com
Source: