Frontier Lithium Inc. Announces Positive Preliminary Feasibility Study FOR the Pak Lithium Project, Northwestern Ontario
General Office
2736 Belisle Drive
Val Caron, ON P3N 1B3
T. 705.897.7622
F. 705.897.7618
FRONTIER LITHIUM INC. ANNOUNCES POSITIVE PRELIMINARY FEASIBILITY STUDY FOR THE PAK
LITHIUM PROJECT, NORTHWESTERN ONTARIO
Sudbury, Ontario , March 2, 2018 – Frontier Lithium Inc. (TSXV: FL) (“Frontier” or “the Company”) is
pleased to release the results of a Preliminary Feasibility Study (“PFS”) for the PAK Lithium Project
located approximately 175 kilometers north of Red Lake, Ontario . Included with this PFS is the
announcement on the updated Mineral Resource Estimate for the PAK Lithium Project.
The results of the P FS (see tables 1-5 below) include a pre-tax net present value at a 8 percent discount
rate of $ 448 million with a pre -tax internal rate of return of 46.5 percent and a post -tax NPV at a 8
percent discount rate of $301 million with a post-tax IRR of 38.3 percent.
The PFS is based on an updated mineral resource estimate completed by Todd McCracken, P.Geo,
outlined in the National Instrument 43-101 technical report update as reported in Table 6.
Highlights from the PFS, with the base -case premium technical grade lithium concentrate of 7.2% Li 2O
(TG_SC7.2) price of $1,250 (U.S.) per tonne, chemical grade lithium concentrate of 6.6% Li2O (CG_SC6.6)
price of $750 (U.S.) per tonne and an exchange rate of $1.25 USD/CAD, are as follows (all figures in
Canadian dollars unless otherwise stated):
Life of Mine Revenue is 1,859 million
Pre-production Capital is $ 147 million with a contingency of 10% included within the initial
capital. Pre-production is for a 2 year period.
Sustaining Capital $37 million for the Life of Mine (“LOM”).
Pre-tax NPV (8% discount rate) of $448 million and internal rate of return of 46.5%.
Post-tax NPV (8% discount rate) of $301 million and internal rate of return of 38.3%.
Pre-tax Cash Flow of $1,013 million over 16 year LOM.
Post-tax Cash Flow of $700 million over 16 year LOM.
Positive Cash-flow is realized in year 2 of production.
5.8 million tonnes of mill feed averaging a combined 2.00% Li2O.
11.5 year open pit operation, 4.5 year underground operation.
Mill operates at average tonnage of 1,090 tonnes per day.
Total production of 1.14 million tonnes of technical grade concentrate of 7.2% Li2O
Total production of 115,500 tonnes of chemical grade concentrate of 6.6% Li2O
“The compelling PFS results display the PAK Lithium Project’s ability to firstly become a high margin,
low cost producer of a unique premium low-iron spodumene concentrate which is in very high
demand by the global lithium market. In addition, an additional by-product output of chemical grade
concentrate is produced which could also be further upgraded as required by the lithium battery
market” comments Trevor Walker, President and CEO of Frontier Lithium . “Despite the strong PFS
results, I see room to further optimize the resource and engineering designs and have already
transitioned to feasibility level work. This significant milestone also sets the path forward to
strategically expand the resource, support ongoing lithium compound testwork, progress our
discussions with potential offtake, as well as furthering collaboration agreements with our
neighboring First Nation communities."
General Office
2736 Belisle Drive
Val Caron, ON P3N 1B3
T. 705.897.7622
F. 705.897.7618
Table 1
Production Profile
Total Tonnes Milled 5.8 million
Diluted Head Grade 2.00% Li2O
Mine Life 16 years
Daily mill commercial throughput 1,090 tpd
Lithium Recovery 78.5%
Total TG Production (7.2% Li2O) 1.14 MT
Total CG Production (6.6% Li2O) 115,500 tonnes
Table 2
Economic Assumptions and Parameters
Exchange Rate (USD/CAD) $1.25
Discount Rate 8%
TG_SC7.2 Price (USD) $1,250/tonne
CG_SC6.6 Price (USD) $750/tonne
Table 3
Project Economics
Pre-Tax
NPV (8% Discount Rate) $448 M
Internal Rate of Return 46.5%
Cumulative Cash Flow $1,013 M
Post-Tax
NPV (8% Discount Rate) $301 M
Internal Rate of Return 38.3%
Cumulative Cash Flow $700 M
Table 4
Capital Requirements $ Million
Site Prep/ Infrastructure 45.6
Mill Processing 59.3
Power Distribution 6.4
Open Pit Equipment 12.9
Water treatment and waste management 9.5
Contingency 13.5
Total Pre-production Capital Cost 147.3
Total Sustaining Capital Cost 36.6
Table 5
Operating Costs $/tonne processed
Direct Open Pit Mining Cost 4.06
Direct Underground Mining Cost 84.07
Direct Processing Cost 18.01
General Office
2736 Belisle Drive
Val Caron, ON P3N 1B3
T. 705.897.7622
F. 705.897.7618
Table 6 Updated 2018 Mineral Resource Calculation
Cut-
off
Resource
Category
Commodity Geologic Zone Tonnes (t) Li2O
(%)
Ta2O5
(ppm)
Cs2O
(%)
Rb2O
(%)
Contained
Li2O (t)
0.4% Li2Oeq
Measured Lithium Upper Intermediate Zone (UIZ) 324,720 3.95 60 0.03 0.12 12,830
Lithium Lower Intermediate Zone (LIZ) 920,330 1.72 104 0.03 0.29 15,848
Lithium Total Lithium Zone 1,245,050 2.30 93 0.03 0.24 28,678
Lithium / Tantalum / Rubidium Bulk Pegmatite 1,245,050 2.30 93 0.03 0.24 28,678
0.4% Li2Oeq
Indicated
Lithium Upper Intermediate Zone (UIZ) 333,200 3.23 70 0.04 0.20 10,776
Lithium Lower Intermediate Zone (LIZ) 5,909,500 1.89 102 0.04 0.31 111,690
Lithium Total Lithium Zone 6,242,700 1.96 100 0.04 0.30 122,465
Tantalum / Rubidium Central Intermediate Zone (CIZ) 1,011,300 0.80 117 0.08 0.58 n/a
Lithium / Tantalum / Rubidium Bulk Pegmatite 7,254,000 1.69 102 0.04 0.34 122,465
0.4% Li2Oew
Measured + Indicated
Lithium Upper Intermediate Zone (UIZ) 657,920 3.59 65 0.03 0.16 23,605
Lithium Lower Intermediate Zone (LIZ) 6,829,830 1.87 102 0.04 0.30 127,538
Lithium Total Lithium Zone 7,487,750 2.02 99 0.04 0.29 151,143
Tantalum / Rubidium Central Intermediate Zone (CIZ) 1,011,300 0.80 117 0.08 0.58 n/a
Lithium / Tantalum / Rubidium Bulk Pegmatite 8,499,050 1.78 101 0.04 0.33 151,143
0.4% Li2Oeq
Inferred
Lithium Upper Intermediate Zone (UIZ) 13,000 3.56 44 0.03 0.12 463
Lithium Lower Intermediate Zone (LIZ) 1,819,000 2.09 95 0.02 0.29 37,982
Lithium Total Lithium Zone 1,832,000 2.10 95 0.02 0.28 38,439
Tantalum /Rubidium Central Intermediate Zone (CIZ) 85,000 1.16 151 0.08 0.49 n/a
Lithium / Tantalum / Rubidium Bulk Pegmatite 1,917,000 2.01 97 0.02 0.29 38,439
Grand Total Bulk Pegmatite 10,416,050 1.82 100 0.04 0.32 189,582
1) For the sole purpose of this resource estimation, Li2O equivalent was determined based on lithium and tantalum grades, prices
($400 per tonne of 6% spodumene concentrate and $150 per kg of 30% tantalite concentrate) and their respective recovery ratio
(78.5% recovery for lithium and a 50% recovery for tantalum from bulk pegmatite). No credit was included for rubidium, cesium or
any of the other elements contained for the purpose of this estimate
2) Li2O content in the CIZ is predominantly associated with lithian micas and without metallurgical testing not deemed recoverable,
therefore, not included in the Li2O contained and subsequently the Li2O equivalent calculation for the purpose of this report.
3) The UIZ and LIZ are technical/ceramic -grade lithium zones (high -grade lithium with low inherent iron (0.1% Fe 2O3 from whole rock
analysis). The iron content of spodumene contained within the LIZ increases as the contact with iron-rich metasedimentary country
rocks are approached, but it has been noted that a concentration below 0.1% wt.% Fe 2O3 is maintained to within about 1 meter of
the pegmatite-metasediment contact.
4) Calculation is based on 6,307m of drilling in 32 holes with an average depth of 160m to a maximum depth of 360m vertical in the
deposit, 294m of production drilling for 68 blast holes for the 300 tonne UIZ bulk sample in 2015, and 32 channels covering 2 16m at
surface.
5) Mineral Resources are not Mineral Reserves having no demonstrated economic viability. Results are presented undiluted and in situ.
6) Measured, Indicated and Inferred Resources were evaluated from drill hole and channel sample results using a block model
approach (krig interpolation) with Surpac software.
7) (Calculations used metric units (meters, tonnes and ppm). Results were rounded to reflect their estimated nature. Tonnes are
rounded to reflect the accuracy of the estimation. Grades reported in percent were rounded to two decimals while g rades reported
in part per million (ppm) were rounded to the closest integer.
General Office
2736 Belisle Drive
Val Caron, ON P3N 1B3
T. 705.897.7622
F. 705.897.7618
Table 7 Reserve Table
Reserve Category Million Tonnes Li2O%
Open Pit
Proven 1.19 2.39
Probable 2.93 1.93
Sub total 4.12 2.06
Underground
Probable 1.65 1.84
Total (OP+UG) 5.77 2.00
Due Diligence
The Mineral Resources for PAK Lithium Project disclosed in this news release have been estimated by
Mr. Todd McCracken, P.Geo., an employee of WSP Canada Inc and independent of Frontier. By virtue of
his education and relevant experience, Mr. McCracken is "Qualified Person" for the purpose of National
Instrument 43 -101. The Mineral Resource has been classified in accordance with CIM Definition
Standards for Mineral Resources and Mineral Reserves, ( November 2014). Mr. McCracken, P.Geo., has
read and approved the contents of this press release as it pertains to the disclosed Mineral Resource
estimate.
Qualified Persons and 43-101 Disclosure
Garth Drever, P.Geo, Vice President Exploration for Frontier Lithium Inc. is a Qualified Person as defined
by NI 43 -101 and has reviewed and approved the contents of this news release. Mr. Drever has been
involved with all aspects of the PAK Lithium project since 2013.
Todd McCracken, P.Geo, Principal, Manager – Mining , at WSP Canada is an independent Qualified
Person as per National Instrument 43 -101, and is responsible for the estimation of the PAK Lithium
Project mineral resource. Mr. McCracken has reviewed and verified that the technical information
contained herein is accurate and approves of the written disclosure of same.
Johnny Canosa P.Eng., Sr. Mining Engineer for Nordmin Engineering Ltd., is an independent Qualified
Person as defined by NI 43-101 and has reviewed and approved the contents of this news release.
Mr. Canosa is responsible for Financial Analysis, Open Pit Mine Planning, Operating and Capital Costs.
Roy Levesque P.Eng., Sr. Mining Engineer for Nordmin Engineering Ltd., is an i ndependent Qualified
Person as defined by NI 43 -101 and has reviewed and approved the contents of this news release.
Mr. Levesque is responsible for Underground Mine Design, Mine Planning and Scheduling.
General Office
2736 Belisle Drive
Val Caron, ON P3N 1B3
T. 705.897.7622
F. 705.897.7618
Kurt Boyko, P.Eng., Consulting Specialist - Mechanical for Nordmin Engineering Ltd., is an independent
Qualified Person as defined by NI 43-101 and has reviewed and approved the contents of this news
release. Mr. Boyko is responsible for process plan design.
About Frontier Lithium Inc.
Frontier’s goal is to become a low-cost, fully integrated lithium and tantalum producer through
development of the PAK lithium deposit in Ontario, Canada. Frontier maintains a tight share structure
with management ownership exceeding 30% of the Company. The initial target market is the glass-
ceramic industry which consumes roughly one-third of global lithium supply and is currently faced with
monopolistic conditions, coupled with major lithium producers increasingly directing output toward
supporting battery manufacture.
Ceramic/glass customers prefer to source technical-grade (low-iron) spodumene concentrate in excess
of 7% lithium oxide (Li2O), if available, to avoid lower grade petalite concentrates, or paying much higher
prices for battery grade lithium compounds.
The PAK lithium deposit remains open in all directions and Company Management is working towards
developing a viable operation. The Company is currently completing a pre-feasibility study to assess the
economic viability and technical feasibility of producing lithium concentrates. Frontier’s goal is to first
establish a viable technical grade spodumene concentrate operation. A possible second stage of
investment and longer term prospect is to further process a combination of some of PAK’s output to
produce the higher purity lithium compounds required for lithium battery technologies used in the
electrification of transportation and electric grid storage applications.
General Office
2736 Belisle Drive
Val Caron, ON P3N 1B3
T. 705.897.7622
F. 705.897.7618
About the PAK Lithium Project
The PAK Lithium Project lies close to the boundary between two geological sub-provinces of the western
Superior geologic province in northwestern Ontario and hosts a rare metals pegmatite deposit. The
deposit is an LCT (lithium- cesium- tantalum) type pegmatite. These types of pegmatites have been the
principal source of hard rock lithium, tantalum, rubidium and cesium ores mined in the world but there
are comparatively few commercially-viable deposits.
Frontier is actively exploring its 100% owned project which contains the Pakeagama Lake pegmatite. The
PAK deposit has a current Measured and Indicated Resource of 8.5 million tonnes of 1.78% Li2O and an
Inferred Lithium Resource of 1.9 million tonnes of 2.01% Li2O which has a technical/ceramic grade
spodumene with low inherent iron (below 0.1% Fe2O3).
The deposit now has a known 500m strike length with an estimated true width varying from 10m to
125m with a sub-vertical orientation. The resource remains open to depth and along strike to the
northwest and southeast.
Company Contact Information
Trevor R. Walker
President & CEO
2736 Belisle Drive Val Caron, ON. P3N 1B3 CANADA
T. +001 705.897.7622
F. +001 705.897.7618
Media Requests
Joseph Mansourian
Manager, Investor Relations
2736 Belisle Drive Val Caron, ON. P3N 1B3 CANADA
T. +001 705.618.0070
F. +001 705.897.7618
Additional information regarding Frontier Lithium is available on SEDAR at www.sedar.com under the
Company's profile and on its website at www.frontierlithium.com, including various pictures of ongoing
work at the project.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
General Office
2736 Belisle Drive
Val Caron, ON P3N 1B3
T. 705.897.7622
F. 705.897.7618
Forward-looking Statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This release includes certain statements that may be deemed “forward -looking statements”. All
statements in this release, other than statements of historical facts, that address future production,
reserve potential, exploration dri lling, exploitation activities and events or developments that the
Company expects are forward -looking statements. Although the Company believes the expectations
expressed in such forward -looking statements are based on reasonable assumptions, such stateme nts
are not guarantees of future performance and actual results or developments may differ materially from
those in the forward-looking statements. Factors that could cause actual results to differ materially from
those in forward looking statements includ e market prices, exploitation and exploration successes,
continued availability of capital and financing, and general economic, market or business conditions.
Investors are cautioned that any such statements are not guarantees of future performance and tho se
actual results or developments may differ materially from those projected in the forward -looking
statements. For more information on the Company, Investors should review the Company’s registered
filings what are available at https://www.sedar.com