Surge Delivers Preliminary Economic Assessment For High-Grade Nevada North Lithium Project; After-Tax NPV8% US$9.21 Billion and After-Tax IRR of 22.8% OPEX of US$5,097/tonne LCE NNLP PEA Highlights: After-tax NPV 8 % : US$9.21 Billion, IRR of 22.8% at US$24,000/t LCE price
Surge Delivers Preliminary Economic
Assessment For High-Grade Nevada North
Lithium Project; After-Tax NPV8% US$9.21
Billion and After-Tax IRR of 22.8% OPEX of
US$5,097/tonne LCE
NNLP PEA Highlights:
After-tax NPV
8
%
: US$9.21 Billion, IRR of 22.8% at US$24,000/t LCE price
Operating cost ("OPEX")
: US
$5,097/t LCE
Near-surface, high-grade mineralization provide Surge NNLP advantage
PEA mine and processing plan produces 3.6 Mt battery-grade lithium carbonate
equivalent ("LCE") over the 42-year life of mine ("LOM")
Average Annual Production of 86,300 tonnes LCE
Peak Production of 109,100 tonnes LCE in Year 6
Lithium Plant will be built in two phases
Phase 1 ("P1") Capital Cost ("CAPEX"): US$2.97 Billion, Phase 2 ("P2") CAPEX: US$2.35
Billion, total of US$5.30 Billion
Sustaining Capital: US$1.51 Billion
After-tax payback: 4.7 years
Average LOM annual after-tax cash flow: US$1.06 Billion
West Vancouver, British Columbia--(Newsfile Corp. - June 9, 2025) - Surge Battery Metals Inc. (TSXV:
NILI) (OTCQX: NILIF) (FSE: DJ5) (the "
Company
" or "
Surge
") is pleased to report the results of its
2025 Preliminary Economic Assessment Study ("PEA") for the Nevada North Lithium Project ("NNLP")
located in Elko County north-northeast of Wells, Nevada.
The PEA, completed jointly by lead consultants M3 Engineering & Technology Corp. ("M3") and
Independent Mining Consultants ("IMC"), confirms robust economics for a low-cost, large-scale and long-
life conventional open pit and dry-stack tailings operation producing battery-grade lithium carbonate
through on-site treatment of the mined material processed through a sulfuric acid leaching circuit. The
PEA scenario envisions 2 phases over the initial 42-year mine life. Phase 1 includes 2.58 million tonnes
per annum ("Mtpa") processing throughput doubling to 5.15 Mtpa in Phase 2, which comes online in
Year 4 of production. A combination of the shallowest and highest lithium grades is prioritized for
processing, resulting in a variable battery-grade lithium carbonate production that peaks in Year 6 at
109,100 tonnes LCE, and averages 86,300 tonnes/year LCE for a total of 3.63 million tonnes LCE over
the LOM at a lithium recovery of 82.8%.
The PEA is derived using the inferred Mineral Resource Estimate ("MRE") effective as of October 9,
2024 and completed by Dr. Bruce Davis (the "MRE"). The effective date of the PEA is May 19, 2025,
and a NI-43101 compliant technical report (the "Technical Report") will be filed under the corporations
SEDAR+ profile within 45 days of this news release.
The preliminary economic assessment is preliminary in nature and includes inferred mineral resources
that are considered too speculative geologically to have the economic considerations applied to them
that would enable them to be categorized as mineral reserves.
There is no certainty that the preliminary
economic assessment will be realized.
Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
The figures shown above represent the NNLP's potential economics with certain LCE selling price
assumptions.
The NNLP's sensitivity to LCE selling prices is detailed below in Table 2. To model 100%
ownership of the subsurface mineral rights on privately held land, Surge has assumed a 2% gross
revenue royalty in its economic model on all revenues from the private land.
Mr. Greg Reimer, Chief Executive Officer and Director, commented, "
We are ecstatic to present
the results of this PEA for the Nevada North Lithium Project. Our goal was to demonstrate that even
using best in class environmental practices, NNLP could potentially be a major low-cost producer of
battery-grade lithium carbonate for the United States battery industry, and we have taken a major step in
achieving that with today's results. The NNLP will benefit the local community with a long and stable 42-
year mine life, with significant extension potential, that will bring thousands of high paying jobs to
northeastern Nevada. Additionally, all of this is possible with a design that doesn't produce a tailings
pond. The combination of low OPEX, great ROI, and the ability to produce large quantities of battery-
grade lithium carbonate including a peak of 109,100 tonnes in one year showcases the Tier 1 status of
NNLP. We received the last assays from our initial drill program in January 2023 and are now reporting
an NPV of US$9.21 Billion in a period of 2.5 years. Our goal is to continue to advance and derisk the
NNLP at a rapid pace, and we hope for further improvements in the Pre-Feasibility and Feasibility
stages of development."
Table 1 - NNLP PEA Key Financial Highlights
2
Description
Units
NNLP PEA
LCE Selling Price
$/tonne LCE
$24,000
Life of Mine
years
42
Processing Rate P1 / P2
ROM Mtpa
2.58 Mtpa / 5.15
Mtpa
Average Throughput (LOM)
t/y
4.88 Mtpa
LCE Produced (average LOM)
t/y
86,300
LCE Produced (total LOM)
tonnes
3,626,000
Operating Cost (OPEX) LOM
$/tonne LCE
$5,097
Gross Revenue
$ B
$87.0
Capital Cost (CAPEX)
P1
$ M
$2,973
Capital Cost (CAPEX)
P2
$ M
$2,350
Total Capital Cost (CAPEX)
$M
$5,323
Sustaining Capital Costs (undiscounted)
$ M
$1,514
Project Economics
Pre-Tax
Net Present Value (NPV)
(8%)
$ M
$11,395
Internal Rate of Return (IRR)
%
25.5%
Initial Payback Period (undiscounted)
years
4.3
Average Annual Cash Flow (LOM)
$ M
$1,269
Cumulative Cash Flow (undiscounted)
$ M
$60,911
Post-Tax
1
Net Present Value (NPV)
8%)
$ M
$9,214
Internal Rate of Return (IRR)
%
22.8%
Payback Period (undiscounted)
years
4.7
Average Annual Cash Flow (LOM)
$ M
$1,062
Cumulative Cash Flow (undiscounted)
$ M
$50,973
Notes:
1. Tax calculation includes Federal Taxes, all Nevada State taxes and royalties and Elko County Property Tax estimates as well as available producer
tax credits.
2. The tabulated calculations are based on inferred mineral resources.
Sensitivity Analysis
Table 2 presents the NNLP Project's sensitivity to LCE selling price.
Table 2 - NNLP Sensitivity Analysis
Sensitivity
($)/t LCE
$15,000
$18,000
$21,000
Base
Case
$2
4
,000
$27,000
$30,000
$33,000
Post-tax NPV
8%
(millions)
2,792
4,983
7,099
9,214
11,314
13,354
15,394
Post-tax IRR (%)
13.0%
16.6%
19.8%
22.8%
25.7%
28.2%
30.6%
Project Details
The Nevada North Lithium Project is in Elko County in northern Nevada, USA. The Project is
approximately 73 kilometers (km) north-northeast of Wells, Nevada, 87 km west of the Utah Border and
35 km due south of the Idaho border. The Project is accessible via a paved highway and county-
maintained gravel roads with good regional infrastructure including power and rail. Northern Nevada is a
major hub for open pit mining operations and is recognized as one of the most concentrated areas in the
world for skilled mining labor. Nevada is home to experienced regulators where Federal and State of
Nevada agencies flow well-established protocols for hard rock mine permitting.
Drilling has identified a strongly mineralized zone of lithium bearing clays occupying a strike length of
more than 4,300 meters and a known width of greater than 1500 meters. The Nevada North Lithium
Project has a pit-constrained Inferred Resource containing an estimated 8.65 Mt of Lithium Carbonate
Equivalent (LCE) grading 2,956 ppm Lithium at a 1,250 ppm cutoff.
Mine Life & Production
The NNLP is planned as a simple truck and shovel operation that targets the shallow, high-grade
portions of the resource in the early mine life. A total of 205 Mt of mineralized material will be mined from
the open pit at an average lithium grade of 4,016 ppm. A total of 238 Mt of waste material will be
extracted, resulting in a low strip ratio of 1.16. The open pit operation will be executed in 14 pit phases
over 42 years, including 3 months of pre-production, with an owner-operated mining fleet.
Average LOM production of approximately 86,300 tonnes/year LCE for 42 years.
Figure 1 shows the lithium production and lithium grades in the plant feed and the post-
beneficiation leached lithium grade by Production Year.
The process is based on sulfuric acid leaching and industry standard techniques with a flowsheet
that produces a high-purity lithium carbonate that is subsequently upgraded to battery-grade in a
refining step. On-site acid production from elemental sulfur minimizes traffic to site, eliminates the
hazards of acid shipping, reduces the plant electricity demand, and ensures that best-in-class
environmental practices are employed.
Beneficiation is employed using Falcon 'C' Concentrators, which results in an average boost of
25% to the lithium grades prior to leaching (see
press release dated October 29, 2025
available
on the Company's SEDAR Profile).
Figure 1 - NNLP Lithium Production and Lithium Grades over LOM
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/9838/254926_1396137c04af0a5c_001full.jpg
Table 3 - LOM NNLP Mining & Production Parameters
Parameter
Unit
Value
Mine Production Life
Years
42
Material mined
LOM Mt
443
Average Grade Mined
ppm Li
4,016
Peak ROM head grade to beneficiation
1
ppm Li
4,807
Peak Head Grade to Leach
1
ppm Li
5,964
Recovered LCE
LOM Mt
3.63
Lithium Recovery
%
82.8%
Waste
LOM Mt
238.4
Total Mineralize Material throughput
LOM Mt
204.8
Strip Ratio (LOM)
(t
w
:t
o
)
1.16
Notes:
1. A combination of shallowest and highest head grades is prioritized through the mine plan. This peak occurs in Year 6.
Operating Expense (OPEX) Estimate
The operating expenses are based on an operation achieving a LOM average annual production of
approximately 86,300 tonnes/year of battery-grade LCE. The average operating cost estimated for the
mine and processing facilities are as follows:
Table 4 - NNLP OPEX Estimate
Area
$/tonne LCE
Percent of Total
Mine
$413
8.1%
Tailings
$287
5.6%
Lithium Processing
1
$4,260
83.6%
General & Administrative
$137
2.7%
Total
$5,097
100%
Notes:
1. Tailings cost includes coarse gangue, clay tailings, and salt tailings
Capital Expense (CAPEX) Estimate
The initial Phase 1 CAPEX is estimated to be US$2.95 Billion with a mine CAPEX of $23 million for a
total of US$2.97 Billion. The Phase 2 CAPEX is estimated to be US$2.35 Billion. Sustaining Capex is
estimated to total US$1.51 Billion over the LOM. The CAPEX is a Class 5 AACE estimate, and includes
offsite infrastructure, owner's cost and contingency.
The total Phase 1 construction period, including early works, commissioning and start-up is expected to
be 3.5 years. Phase 2 is expected to be a 3-year construction and commissioning schedule.
Table 5 - NNLP CAPEX Estimates
Area
Phase 1 Capex ($M)
Phase 2 Capex ($M)
Sustaining Capital ($M)
LoM ($M)
Mine
$23
$142
$165
Process Plant &
Infrastructure
$2,950
$2,350
$1,371
$6,671
Total
$2,973
$2,350
$1,514
$6,836
Qualified Persons
Daniel Roth, PE and Joshua Huss, PE, of M3 Engineering & Technology, Independent Qualified
Persons as defined by
National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI
43-101")
have prepared or supervised the preparation of, or have reviewed and approved, the scientific
and technical data pertaining to the financial modelling and metallurgical information contained in this
release.
John Marek, PE, of Independent Mining Consultants, Independent Qualified Person as defined by NI 43-
101, has prepared or supervised the preparation of, or has reviewed and approved, the scientific and
technical data pertaining to mining and mine scheduling contained in this release.
William van Breugel, PEng., of SGS Geological Services, Independent Qualified Person as defined by
NI 43-101, has prepared or supervised the preparation of, or has reviewed and approved, the data
pertaining to the lithium carbonate base case selling price.
All of the Qualified Persons above are independent of the Company as defined in, and required by, NI
43-101 and NI 43-101CP.
About M3 Engineering & Technology Corp.
M3 Engineering & Technology Corporation ("M3"), a full-service Engineering, Procurement, Construction
& Management firm, is recognized for its experience and capabilities in the development and
construction of mining and mineral processing projects.
In addition to base metals, precious metals, and
semi-precious metals, M3 has increasingly applied its expertise to the industrial and critical minerals
market.
This has included conventional and novel processes of lithium extraction.
About Independent Mining Consultants
Independent Mining Consultants, Inc. (IMC) has provided mine engineering services to the mineral
industry for over 40 years.
Mine planning, equipment selection, and mine cost estimation are part of the
services provided by IMC.
About Surge Battery Metals Inc.
Surge Battery Metals, a Canadian-based mineral exploration company, is at the forefront of securing the
supply of domestic lithium through its active engagement in the Nevada North Lithium Project. The
project focuses on exploring clean, high-grade lithium energy metals in Nevada, USA, a crucial element
for powering the electric vehicles of tomorrow. With a primary listing on the TSX Venture Exchange in
Canada and the OTCQX Market in the US, Surge Battery Metals Inc. is strategically positioned as a key
player in advancing lithium exploration, contributing significantly to the sustainable future of the electric
vehicle industry.
On behalf of the Board of Directors
"Greg Reimer"
Greg Reimer,
President & CEO
Contact Information
Email :
Phone : 778-945-2656
Website:
surgebatterymetals.com
Keep up-to-date with Surge Battery Metals:
YouTube
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 document may contain certain "Forward-Looking Statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When
used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan" or
"planned", "possible", "potential", "forecast", "intend", "may", "schedule" and similar words or
expressions identify forward-looking statements or information. These forward-looking statements or
information may relate to future prices of commodities including lithium and nickel, the accuracy of
mineral or resource exploration activity, reserves or resources, the accuracy of cash flow forecasts,
projected capital and operating costs, metal processing recoveries, mine life, production rates,
regulatory or government requirements or approvals including approvals of title and mining rights or
licenses and environmental, local community or indigenous community approvals, the reliability of third
party information, continued access to mineral properties or infrastructure or water, changes in laws,
rules and regulations including in the United States, Nevada or California or any other jurisdiction which
may impact upon the Company or its properties or the commercial exploitation of those properties,
currency risks including the exchange rate of USD$ for Cdn$ or other currencies, fluctuations in the
market for lithium related products, changes in exploration costs and government royalties, export
policies or taxes in the United States or any other jurisdiction and other factors or information. The
Company's current plans, expectations, and intentions with respect to development of its business and of
its Nevada properties may be impacted by economic uncertainties arising out of any pandemic or by the
impact of current financial and other market conditions (including US government subsidies or
incentives) on its ability to secure further financing or funding of its Nevada properties. Such statements
represent the Company's current views with respect to future events and are necessarily based upon
several assumptions and estimates that, while considered reasonable by the Company, are inherently
subject to significant business, economic, competitive, political, environmental (including endangered
species, habitat preservation and water-related risks) and social risks, contingencies, and uncertainties.
Many factors, both known and unknown, could cause results, performance, or achievements to be
materially different from the results, performance or achievements that are or may be expressed or
implied by such forward-looking statements. The Company does not intend, and does not assume any
obligation, to update these forward-looking statements or information to reflect changes in assumptions
or changes in circumstances or any other events affecting such statements and information other than as
required by applicable laws, rules, and regulations.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/254926