Century Lithium Announces Positive Feasibility Study FOR the Clayton Valley Lithium Project, Nevada Feasibility Study Highlights
TSXV: LCE | OTCQX: CYDVF
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NEWS RELEASE
CENTURY LITHIUM ANNOUNCES POSITIVE FEASIBILITY STUDY
FOR THE CLAYTON VALLEY LITHIUM PROJECT, NEVADA
FEASIBILITY STUDY HIGHLIGHTS
• Large-Scale Nevada-based Lithium Project: three-phase production plan will generate a life-of-mine
average of 34,000 tonnes per annum (tpa) of battery-quality lithium carbonate (Li2CO3)
• Innovative Approach in Processing: patent-pending chloride leaching process combined with Direct
Lithium Extraction (DLE), the Feasibility Study is supported by 2+ years of testing at the Company’s Pilot
Plant
• Mineral Resource Estimate: Measured and Indicated resources totaling 1,207.33 million tonnes (Mt)
at an average grade of 957 parts per million (ppm) lithium (Li) containing 1.155 Mt of Li or 6.148 Mt of
lithium carbonate equivalent (LCE)
• Long 40-Year Mine Life: Proven and Probable Mineral Reserve Estimate totaling 287.65 Mt at an
average grade of 1,149 ppm Li containing 0.330 Mt of lithium or 1.759 Mt of LCE
• Initial Project: Phase 1 Capital Cost $1.537 billion for production capacity of 13,000 tpa LCE
• Designed for Expansion: Phase 2 $0.651 billion for 28,000 tpa LCE, and Phase 3 $1.336 billion for
41,000 tpa LCE; Project expansions are capitalized with Project cash flow
• Low Operating Cost: average operating cost $8,223/t of Li2CO3 produced, or $2,766/t after sales of
surplus sodium hydroxide (NaOH)
• After-tax IRR of 17.1% at $24,000/t Li2CO3: $3.01 billion after-tax net present value (NPV) at 8%
discount rate and a 17.1% after-tax internal rate of return (IRR), using price assumptions of $24,000/t
for Li2CO3 and $600/dry metric tonne (dmt) for NaOH
April 29, 2024 – Vancouver, Canada – Century Lithium Corp. (TSXV: LCE) (OTCQX: CYDVF) (Frankfurt: C1Z)
(Century Lithium or the Company) is pleased to announce the results of a National Instrument 43-101 (NI
43-101) feasibility study (Feasibility Study, FS or Study) completed on its 100% owned Clayton Valley
Lithium Project (Project) in Nevada, USA. The Feasibility Study was prepared by Wood Group USA, Inc.
(Wood) and Global Resource Engineering, Ltd. (GRE). All currency amounts in this news release are
presented in U.S. dollars.
“Century Lithium is proud to present our Feasibility Study. The Study indicates our Project has robust
economics, made possible with our unique chlor-alkali and DLE processes” commented Bill Willoughby,
President, and CEO. “Completion of the Study marks a major milestone for the Company and is the result
of the dedicated work and efforts of our team of employees and consultants.”
“Our process technology was developed by way of many trials and successes at our Pilot Plant in Amargosa
Valley. As one of the few lithium-focused Pilot Plants in North America, we continue to operate safely and
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recently passed two years of testing. The data generated to date supports the Feasibility Study, and we
continue to test various conditions and ideas to improve our process flow sheet,” said Bill Willoughby.
With the Feasibility Study completed, the Company will now direct its focus on engineering and permitting.
The Company is concurrently advancing discussions with government agencies, strategic partners, and
other interested parties to provide funding to advance the Project and maximize the value to the
Company’s shareholders that is reflected in the FS.
FEASIBILITY STUDY SUMMARY
The information in the following tables highlight the Project’s production and economic summaries.
Production Summary
Phase Years Mine tonnes per day (tpd) Li2CO3 (tpa) Capital Cost (B$)
1 1-5 7,500 13,000 $1.537
2 6-10 15,000 28,000 $0.651
3 11+ 22,500 41,000 $1.336
Economic Summary Units Amount
Operating Costs (average) $/t 8,223
Operating Costs (average w/NaOH credit) $/t 2,766
After-tax NPV @ 8% Discount Rate $ billion 3.01
After-tax IRR % 17.1
RESOURCE AND RESERVES
The Mineral Resource and Reserve Estimates for the Project were updated for the Feasibility Study and
built using geologic data and 1,318 lithium assays from 45 core holes drilled between 2017 and 2022. The
constrained Measured and Indicated Resource Estimate is 1,207.33 Mt with an average grade of 957 ppm
lithium and contains 1.155 Mt of Li or 6.148 Mt of LCE. The Proven and Probable Mineral Reserve Estimate
was derived from the constrained Mineral Resources and contains 287.65 Mt with an average grade of
1,149 ppm lithium and contains 0.330 Mt of Li or 1.759 Mt of LCE and reflects an increase of 74.6 Mt and
0.48 Mt LCE compared to the 2021 Mineral Reserve Estimate. The Mineral Resources were generated with
a pit shell that encompasses all mineralized material within the Property excluding all areas that will be
used for Project infrastructure and placement of tailings, waste, and low-grade material.
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Mineral Resource Estimate
Domain Tonnes Above
Cut-off (millions) Li Grade (ppm) Li Contained
(million t) LCE (million t)
Measured 858.38 990 0.849 4.524
Indicated 348.95 875 0.305 1.625
Measured & Indicated 1,207.33 957 1.155 6.148
Inferred 119.03 827 0.098 0.524
The effective date of the Mineral Resource Estimate is December 15, 2022. The QP for the estimate is Ms. Terre Lane, MMSA, an employee of GRE and independent of Century. The Mineral
Resources are constrained by a pit shell with a 200 ppm Li cut-off and density of 1.505 g/cm3. The cut-off grade considers an operating cost of $16.90/t mill feed, process recovery of 83% and
a long-term lithium carbonate price of $20,000/t. The Mineral Resource estimate was prepared in accordance with CIM Definition Standards (CIM, 2014) and the CIM Estimation of Mineral
Resources and Mineral Reserves Best Practice Guidelines (CIM, 2019). Mineral Resource figures were rounded. One tonne of lithium = 5.323 tonnes lithium carbonate. Mineral Resources are
inclusive of Mineral Reserves.
Mineral Reserve Estimate
Domain Tonnes Above Cut-
off (millions) Li Grade (ppm) Li Contained
(million t) LCE (million t)
Proven 266.39 1,147 0.306 1.626
Probable 21.26 1,174 0.025 0.133
Proven & Probable 287.65 1,149 0.330 1.759
The effective date of the Mineral Reserve Estimate is December 15, 2022. The QP for the estimate is Ms. Terre Lane, MMSA, an employee of GRE and independent of Century. The Mineral
Reserve estimate was prepared in accordance with CIM) Definition Standards (CIM, 2014) and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (CIM,
2019). Mineral Reserves are reported within the final pit design at a mining cut-off of 900 ppm. The cut-off grade considers a mine operating cost of $1.98/t, a process operating cost of
$14.27/t milled, a G&A cost of $0.65/t milled, process recovery of 83% and a long-term lithium carbonate price of $20,000/t. The cut-off of 900 ppm is an elevated cut-off selected for the
mine production schedule as the elevated cutoff is 4.5 times higher than the break-even cut-off grade. Mineral Reserve figures have been rounded. One tonne of lithium = 5.323 tonnes lithium
carbonate. Mineral Resources are inclusive of Mineral Reserves.
PROCESS METALLURGY & CHLOR-ALKALI PLANT
Metallurgical testing through 2020 focused on using sulfuric acid (H2SO4) to extract lithium from the clay.
In late 2020, testing shifted to hydrochloric acid (HCl) for its improved compatibility with the deposit’s
chemistry. These benefits included higher lithium extractions, lower reagent consumptions, significantly
better filtration of solids, and the ability to utilize certain DLE technologies in the recovery and
concentration of lithium from the leach solutions.
A key component of the Project with chloride-based leaching is a chlor-alkali plant. The chlor-alkali plant
provides the ability to produce the key reagents HCl and NaOH on-site from the electrolysis of a sodium
chloride (NaCl) solution. A chlor-alkali plant represents a greater capital investment relative to that of a
sulfuric acid plant but has important environmental and economic benefits for the sustainability of the
Project. These benefits include replacing the purchase and transportation of sulfur with regionally sourced
salt, and a reduction in emissions and the physical footprint of the operation with dryer, non-sulfate
tailings.
Additionally, the chlor-alkali plant will generate significant quantities of NaOH surplus to the Project’s
operational needs and therefore available for sale. The chlor-alkali plant will utilize modern
electrochemical cell technology thereby producing membrane grade sodium hydroxide without the energy
consumption and environmental problems of older technologies. The surplus amounts of NaOH are
inherent to the operation of the plant and the sales represent a significant offset to the Project’s operating
costs.
PILOT PLANT
In 2021, Century Lithium constructed a Pilot Plant in Nevada to leach one tonne per day of lithium clay and
produce a high-grade lithium chloride solution which is processed off-site at Saltworks Technologies, Inc.
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(Saltworks), at their Richmond, British Columbia processing plant to make battery-quality Li2CO3. To
maximize lithium recovery, the Company purchased the license rights and pilot-stage equipment to DLE an
ion-exchange-based process and incorporated it into the Pilot Plant. The DLE license is held in perpetuity
and royalty free by the Project.
Throughout its Pilot Plant program, the Company has sought improvement in its process methods. The
Company obtained a provisional patent in 2023 with the U.S. Patent and Trademark Office, U.S.
Department of Commerce. The provisional patent is titled System and Method for Extracting Lithium from
Clay and Other Materials in a Chloride Solution Using Individualized Pretreatments. The patent pending
process encompasses the Company’s flowsheet and protects its methods of leaching lithium-bearing solids
and handling solutions, precipitates, and residues.
LITHIUM EXTRACTION, RECOVERY & Li2CO3 PRODUCTION
A lithium recovery of 78% is used in the Feasibility Study, based on the data collected in over two years of
operations at the Pilot Pant.
• Feed material grades averaged 1,100 ppm
• Leach solution samples varied from 200 to 320 ppm Li
• Lithium extractions averaged 88% and varied from 80 to 95%
• DLE lithium recoveries were typically above 90%
• 10% of the lithium in solution is retained in the moisture remaining in the tailings
Extraction rates do not account for losses downstream and are only indicative of the potential overall
recovery. Work at the Pilot Plant continues to focus on reducing losses of lithium to tailings. A small loss of
lithium from processing the DLE product solutions into Li2CO3, and the recycling of process solutions to the
DLE and leach areas is anticipated.
During 2022 and 2023, Saltworks processed the DLE product solutions from the Pilot Plant and made
battery-quality Li2CO3 at greater than 99.5% purity. Modifications at the Pilot Plant in mid-2023 increased
lithium solution grades to over 14 grams per liter which simplified the flowsheet and eliminated the
evaporation stage for production of Li2CO3.
PRODUCTION PLAN
The Project’s production plan comprises three equal phases of production rate increases, Phase 1 and
Phase 2 production rates are maintained over five years each and Phase 3 is maintained for 30 years. This
approach was selected to reduce capital exposure and risk by dividing the Project’s production schedule
into realistic phases of construction and equipment installation. The plan fully utilizes the Project’s Mineral
Reserve.
Phase 1 includes all work required to implement the Initial Project Plan including all necessary mining and
processing infrastructure. The Phase 2 cost estimate focuses on an expansion within the footprint of Phase
1. Phase 3 development includes an additional processing plant and facilities not built in the previous
phases and allows for a fourth phase of expansion.
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LITHIUM CARBONATE AND SODIUM HYDROXIDE SALES PRICES
A price of $24,000/t of Li2CO3 is used in the Feasibility Study as the Project base case. This price is selected
as a conservative mid-point between current market prices which are under $20,000/t Li2CO3 and forecast
prices obtained from Benchmark Mineral Intelligence which are in the range of $23,000 to $39,000/t Li2CO3
during Phase 1 and $29,000 to $31,000/t Li2CO3 thereafter (Benchmark Mineral Intelligence, Lithium
Forecast Q1 2024). The sales price is free on board (FOB) the Project site for battery quality Li2CO3.
NaOH is a product of the chlor-alkali process and a sales price of $600/dmt FOB the Project is used in the
Feasibility Study as the Project base case. Based on the material mass balance, it is expected that surplus
NaOH will be available for sale at rates of 120,000 to 360,000 dmt per annum, depending on Project Phase.
This price is based on a February 2023 market study by Global Exchange and Trading, Inc. where it was
determined the Project’s surplus NaOH can be readily sold in the western U.S. which currently relies heavily
on imports arriving at west coast ports.
CAPITAL COST ESTIMATE
The basis for the capital cost estimate follows AACE Class 3 for feasibility studies. Contributors to the
estimates are GRE (mining), Wood (process plant and infrastructure), ThyssenKrupp Nucera (chlor-alkali
plant) and Century Lithium (property information and owners’ costs). The capital cost estimates by phase
are summarized as follows.
Installed Capital Costs Initial
Phase 1 ($M)
Expansion
Phase 2 ($M)
Expansion
Phase 3 ($M)
Mining & Site Preparation $64 $7 $27
Process Facilities $517 $205 $477
Chlor-Alkali Plant $496 $336 $496
Buildings, Services & Infrastructure $130 $5 $42
Indirect & Owners Costs $234 $72 $190
Contingency $96 $27 $105
Total Capital Cost $1,537 $651 $1,336
Notes: Totals may not sum due to rounding, Contingency and site Indirects for chlor-alkali plant is included in the Chlor-Alkali Plant line item, contingency for mining is included in the
Contingency line item, indirect costs for mining are not included in the Indirects and Owner’s Costs line item
The Phase 2 capital costs represent the expansion of the process facilities and infrastructure established in
Phase 1. The Phase 3 capital costs support an additional processing plant and facilities not built in the
previous phases. In the Project schedule, a 2-year period is allocated for the time to construct and
commission each phase.
Sustaining capital over the life of the Project is estimated at $315 million for tailings facility expansion and
equipment replacements. These costs are in addition to the expansion capital costs shown above.
OPERATING COST ESTIMATES
The following information highlights the operating cost estimates for each phase in dollars per tonne of
Li2CO3, before and after deducting sales of surplus NaOH.
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Expansion Phase 2
(15,000 tpd mill feed) $ (000s)/y $/t mill feed $/t LCE
Mining $24,901 $4.26 $766
Processing and G&A $82,018 $14.98 $3,157
Chlor-Alkali Plant $105,138 $19.20 $4,047
Total Operating Cost $212,057 $38.44 $7,970
Less NaOH Sales (FOB mine) $142,350 $26.00 $5,479
Net Operating Cost $69,707 $12.44 $2,491
Note: Totals may not sum due to rounding
Expansion Phase 3
(22,500 tpd mill feed) $ (000s)/y $/t mill feed $/t LCE
Mining $22,064 $2.70 $561
Processing and G&A $119,945 $14.60 $3,078
Chlor-Alkali Plant $151,325 $18.43 $3,884
Total Operating Cost $293,334 $35.73 $7,523
Less NaOH Sales (FOB mine) $213,525 $25.99 $5,479
Net Operating Cost $79,809 $9.74 $2,044
Note: Totals may not sum due to rounding
ECONOMIC MODEL AND SENSITIVITY
The cash flow model is developed using base prices of $24,000/t for Li2CO3 and $600/dmt for NaOH.
Average Annual Values Units Initial
Phase 1
Expansion
Phase 2
Expansion
Phase 3
Li2CO3 Sales t 11,885 26,753 39,098
NaOH Sales dmt 130,488 237,250 355,875
Gross Sales $ million $282.4 $635.7 $929.0
Before-tax Cash Flow $ million $231.3 $553.3 $825.3
Lithium carbonate sales are the average over each Phase including ramp up to the stated production rate.
Gross sales are revenues from Li2CO3 and NaOH sales are before operating costs and after royalty. Before-
tax Cash Flow is gross sales minus operating costs. Taxes are applied at federal, state and county rates after
allowances for amortization, depletion, and depreciation only. Possible tax credits under the U.S. Inflation
Reduction Act or other programs are not included.
Initial Phase 1
(7,500 tpd mill feed) $ (000s)/y $/t mill feed $/t LCE
Mining $13,754 $5.43 $1,205
Processing and G&A $57,515 $21.01 $4,428
Chlor-Alkali Plant $61,787 $22.57 $4,757
Total Operating Cost $133,056 $49.01 $10,390
Less NaOH Sales (FOB mine) $78,272 $28.95 $6,026
Net Operating Cost $54,784 $20.06 $4,364
Note: Totals may not sum due to rounding
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The Project base case generates a 17.1% after-tax IRR and NPV-8% of $3.01 billion. These results are
sensitive to changes in operating assumptions including the sales price of Li2CO3.
• At 75% of the base case, or $18,000/t LCE, the after-tax NPV@ 8% is $1.52 billion, and the after-
tax IRR is 12.9%.
• At 125% of the base case, or $30,000/t LCE, the after-tax NPV@ 8% is $4.47 billion, and the after-
tax IRR is 20.9%.
• For every $1,000/t change in the price of lithium carbonate, the after-tax NPV@8% changes by
about $250 million.
Project Sensitivity Units 75% Base Case 125%
Lithium Price $/t LCE $18,000 $24,000 $30,000
NPV-8% $ billion $1.52 $3.01 $4.47
IRR % 12.9 17.1 20.9
PROJECT ADVANCEMENT
The Company has completed multiple environmental studies in advance of permitting and is examining
ways to optimize power requirements and incorporate alternative energy solutions.
The recommendations of the FS include continuing the permitting process, engaging with governmental
agencies and other parties, and proceeding with detailed engineering to further advance the Project.
Among these steps, the Company has contacted the U.S. Department of Energy’s (DOE) Loan Programs
Office (LPO) and plans to initiate the pre-application process under the Title Seven Clean Energy Financing
program when the Feasibility Study report is complete.
CONFERENCE CALL
Century Lithium will host a live webcast and conference call for analysts and investors on Monday, April
29, 2024, at 11:00 am ET (8:00 am PT), followed by a question-and-answer session.
To register for the webcast, link here: https://events.6ix.com/preview/century-lithium-announces-
positive-feasibility-study
A replay of the webcast will be available on our website shortly following the conclusion of the conference
call.
QUALITY ASSURANCE
The data in this news release was prepared in accordance with NI 43-101 standards by the following
Qualified Persons (QP).
• Terre Lane, Principal Mining Engineer, GRE, is an independent QP as defined by NI 43-101 and has
reviewed and approved the contents of this news release and verified by site visits and personal
examination the information and original documents that relate to preparation of the Mineral
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Resource Estimate, Mineral Reserve Estimate, mine plan, mine capital and operating cost
estimation, economic analysis, and marketing.
• Hamid Samari, Principal Geologist, GRE, is an independent QP as defined by NI43-101 and has
reviewed and approved the contents of this news release and verified by site visits and personal
examination the information and original documents that relate to preparation of the description
of the deposit, geological setting, and mineralization, deposit type, exploration, drilling, sample
preparation, analyses and security, and data verification.
• Todd Fayram, Senior Vice President Metallurgy, Century Lithium, is a non-independent QP as
defined by NI 43-101 and has reviewed and approved the contents of this news release and verified
by site visits and personal examination the information and original documents that relate to
preparation of the description of metallurgical testing, lithium recovery, and design operation and
results of the Pilot Plant.
• Alan Drake, Manager – Process Engineering, Wood, is an independent QP as defined by NI 43-101
and has reviewed and approved the contents of this news release and verified by site visits and
personal examination the information and original documents that relate to preparation of the
description and estimates related to recovery methods.
• Haiming (Peter) Yuan, PE, PhD, Principal Geotechnical Engineer, WSP USA Environment &
Infrastructure Inc., is an independent QP as defined by NI 43-101 and has reviewed and approved
the contents of this news release and verified by site visits and personal examination the
information and original documents that relate to preparation of the description related to
infrastructure, environment and permitting.
• Paul Baluch, Technical Director, Civil, Wood, is an independent QP as defined by NI 43-101 and has
reviewed and approved the contents of this news release and verified by personal examination the
information and original documents that relate to preparation of the description and estimates of
infrastructure.
• Farzad Kossari, Cost Estimating Manager, Wood, is an independent QP as defined by NI 43-101 and
has reviewed and approved the contents of this news release and verified by personal examination
the information and original documents that relate to preparation of the description and summary
of capital and operating cost estimates.
Further information about the Project, including a description of the key assumptions, parameters,
description of sampling methods, data verification and quality assurance (QA) / quality control (QC)
programs, methods relating to Mineral Resources and Mineral Reserves and factors that may affect those
estimates will be contained in a NI 43-101 Technical Report on the Feasibility Study of the Clayton Valley
Lithium Project. Following Section 3.4 of NI 43-101 the report will be available on SEDAR+ and on the
Company’s website within 45 days of the date of this news release.
ABOUT CENTURY LITHIUM CORP.
Century Lithium Corp. is an advanced stage lithium company, focused on developing its 100%-owned
Clayton Valley Lithium Project in west-central Nevada, USA. Century Lithium recently completed a