Power Minerals (ASX: PNN) shows its metyl at Rincon
November 27, 2023Power Minerals’ scoping study of the Rincon salar salt brine lithium project indicates potential for low-cost, high-grade battery carbonate production, with room for growth.
Rincon, part of the Salta Lithium Project in Argentina, has highly favourable results with a pre-tax NPV of $501.82 million and a pre-tax IRR of 42%.
The Direct Lithium Extraction technology estimates the capex of a lithium carbonate plant at a modest $216.55 million.
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The project will produce 7,061 tonnes of high-purity lithium carbonate in its first 14 years, generating $194.8 million in annual revenue and timely payback of upfront costs.
Power Minerals’ Managing Director, Mena Habib, said that the project’s solid economics provide potential for future Mineral Resource upgrades.
“We are extremely encouraged by the outcomes of this Preliminary Economic Assessment (PEA) for the Rincon salar, a priority development asset within our Salta Lithium Project in Argentina,” Mr Habib said.
“The PEA provides initial formal confirmation of the technical and financial
viability of the potential to develop Rincon into a new, long-life source of high-purity lithium carbonate.
“The outcome of the PEA is an outstanding validation of our demonstrated
commitment to the rapid development of the Salta Lithium Project.
“Having commenced a major Resource expansion drilling campaign at Salta late last year, Power has delivered a substantial JORC Mineral Resource upgrade, and is now engaged in development-phase programs at its priority Rincon and Incahuasi salares.”
Power Minerals will now move into the feasibility study phase for Rincon.
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