Nevada Lithium Announces Robust Preliminary Economic Assessment, Reporting US$6.83 Billion After-Tax NPV, 32.3% After-Tax IRR & 2.8 Year Capital Payback for its High- Grade Bonnie Claire Lithium Project.
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Nevada Lithium Announces Robust
Preliminary Economic Assessment, Reporting
US$6.83 Billion After-Tax NPV, 32.3% After-Tax
IRR & 2.8 Year Capital Payback for its High-
Grade Bonnie Claire Lithium Project.
Vancouver, British Columbia – August 6, 2025 – Nevada Lithium Resources Inc. (TSXV: NVLH; OTCQB:
NVLHF; FSE: 87K) (“Nevada Lithium” or the “Company”) is pleased to announce the results of an updated
Preliminary Economic Assessment (“PEA”) on its 100% owned Bonnie Claire lithium project (the “Project”
or “Bonnie Claire”), located in Nye County, Nevada.
The PEA has been prepared by Global Resource Engineering Ltd., (“GRE”) of Denver Colorado and Fluor
Enterprises, Inc. (“Fluor”) of Greenville, South Carolina, with technical input from Kemetco Research Inc.
(“Kemetco”) of Richmond, British Columbia, and Kinley Exploration LLC (“Kinley”) of Overland Park,
Kansas. The PEA has an effective date of March 31, 2025. The PEA incorporates a new Mineral
Resource Estimate (“Mineral Resource Estimate”), with an effective date of March 31, 2025. The
Company will file an updated technical report with respect to the Project, prepared in accordance with
National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") on its public
SEDAR+ profile available at www.sedarplus.ca within 45 days of the date of this news release.
Nevada Lithium’s CEO, Stephen Rentschler, comments:
“We are pleased to release the results of an updated PEA that reflect the latest work on
our lithium/boron project in Nevada. Over the last three years, with the discovery and
expansion of the Project’s high-grade lithium/boron lower zone, our technical teams
have generated an expanded understanding of the potential value at Bonnie Claire. This
understanding is reflected in the results of the PEA we have announced today.
The PEA concludes that Bonnie Claire could produce more than 62,300 tonnes of
lithium carbonate and 129,500 tonnes of boric acid annually, over a 61-year mine life.
Bonnie Claire’s investment metrics show a 32.3% after tax IRR, a capital payback of 2.8
years, and a capital intensity of $34,080/tonne lithium carbonate. A $1,973/tonne boric
acid by-product credit generates a $6,800/tonne lithium carbonate operating cost.”
He continued, “Bonnie Claire has emerged as one of the world’s largest and highest
grade sedimentary hosted lithium and boron deposits, and remains open for expansion. 1
The potential for even higher grades and volumes could positively impact the PEA
economics already demonstrated. In addition, the Company has identified several areas
for potential value enhancement, including ore beneficiation, additional critical minera ls,
and reagent pricing. New tax provisions in the recently passed US HR1 “One Big
Beautiful Bill Act” could also potentially enhance the PEA investment metrics.
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We remain focused on creating shareholder value with the next steps in the
development of this asset, located in one of the world’s premier mining jurisdictions,
Nevada, USA.”
1 See: https://www.nsenergybusiness.com/projects/bonnie-claire-lithium-project-us/?cf-view, https://www.mining.com/featured-
article/ranked-worlds-largest-clay-and-hard-rock-lithium-projects-2/, and Lithium Equity Market Report published by RFC Ambrian
dated November 2023, all of which were prepared by arm’s length parties to the Company. Current internal company estimates support
the reports referenced above.
Join Stephen Rentschler, CEO of Nevada
Lithium for a LIVE virtual event
to learn more about the details of the Company’s newly released Preliminary
Economic Assessment, and ask questions during the interactive Q&A.
Date and time: Thursday, August 7 at 2 pm EST / 11 am PST
Click here to register for the event >
Or visit NevadaLithium.com/Webinar
Bonnie Claire PEA Highlights:
• $6.829 billion after-tax Net Present Value (“NPV”) at an 8% discount rate
• Annual production of 62,354 tonnes of lithium carbonate (Li 2CO3) and 129,533 tonnes of boric acid
per year over a 61 year mine-life
• 32.3% after-tax Internal Rate of Return (“IRR”)
• $2.125 billion initial capital costs, including $354 million in contingency
• Capital intensity of $34,080/tonne Li2CO3
• Payback period of 2.8 years
• $24,000/tonne Li2CO3 and $950/tonne boric acid price assumptions
• Operating cost of $6,800/tonne Li2CO3
• All-in sustaining cost of $7,936/tonne Li2CO3
• Break-even price (0% IRR) of $8,560/tonne Li2CO3
The Company is evaluating multiple areas for optimization of Project economics. These areas include ore
beneficiation, additional critical mineral production, reagent pricing, and tax impacts generated by provisions
in the recently enacted US HR1 (“One Big Beautiful Bill Act”).
PEA Overview and Financial Analysis
Bonnie Claire is a sediment-hosted lithium deposit comprising a lower zone (“Lower Zone”) and an upper
zone (“Upper Zone”), encountered at different depths. The Lower Zone is characterized by high lithium and
high boron grades, while the Upper Zone is characterized by moderate lithium and low boron grades.
Because of the relative positive impact to economics of the higher grades, the PEA is based on the mining
and extraction of mineralised material from the Lower Zone. The mining and extraction of Upper Zone
material is not examined in the PEA but could be revisited as a separate project in the future.
The PEA contemplates an underground operation using a Hydraulic Borehole Mining (“ HBHM”) method
producing at 8,000 tonnes/day, or 2.92 million tonnes/year of >4,500ppm Li material from the high -grade
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Lower Zone. Mineralised material will be processed by whole-ore agitated tank leaching using sulfuric acid.
After processing, the residual mineralised material will be stored as dry-stack tailings on the Project.
Results for the Project are:
• $6.829 billion after-tax NPV at an 8% discount rate
• Annual production of 62,354 tonnes of Li2CO3 and
129,533 tonnes of boric acid per year, with a potential 61 year mine-life
• 32.3% after-tax IRR
• $2.125 billion initial capital costs ($354 million in contingency)
• $24,000/tonne Li2CO3 and $950/tonne boric acid price assumptions
• Payback period of 2.8 years
• Operating cost of $6,800/tonne Li2CO3
• All-in sustaining cost of $7,936/tonne Li2CO3
• Break-even price (0% IRR) of $8,560/tonne Li2CO3
• 85% overall lithium recovery, with 48% overall boron recovery
Cautionary Statement:
The PEA is preliminary in nature and is based on numerous assumptions, and some Inferred mineral resources are used
in the economic analysis. Inferred mineral resources are considered too speculative geologically to have economic
considerations applied to them that would enable them to be categorized as mineral reserves. No mineral reserves have
been estimated. There is no guarantee that Inferred resources can be converted to Indicated or Measured resources and,
as such, there is no guarantee that the Project economics described herein will be achieved.
Mineral Resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on
Mineral Resources and Reserves, Definitions (2014) and Best Practices (2019) prepared by the CIM Standing Committee
on Reserve Definitions and adopted by CIM Council (the “CIM Definitions”).
Mineral Resources are stated for the first time under NI 43 -101 standards of disclosure and verified by independent
Qualified Persons (as such term is defined in NI 43-101). See the section of this news released titled “QP Disclosure” for
further details.
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that
all or any part of the Mineral Resources will be converted into Mineral Reserves. Inferred Mineral Resources are that part
of a Mineral R esource for which quantity and grade or quality are estimated on the basis of limited geological evidence
and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. It is
reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources
with continued exploration.
Sensitivity Analyses
Sensitivity of the Project was evaluated to changes in lithium carbonate price, lithium grade, capital costs,
and operating costs, these results are shown in Table 1, Figure 2 and Figure 3. The cash flow model is
most sensitive to changes in lithium carbonate price and lithium grade, is moderately sensitive to changes in
capital cost, and least sensitive to changes in operating costs.
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Table 1: Bonnie Claire Lithium Project Sensitivity Analysis
Variable
% of Base Case
80% 90% 100% 110% 120%
NPV8 (million $)
Capital Cost $7,238 $7,033 $6,829 $6,624 $6,420
Operating Cost $7,732 $7,280 $6,829 $6,378 $5,926
Lithium Price $4,337 $5,583 $6,829 $8,075 $9,321
Lithium Grade $5,031 $5,930 $6,829 $7,728 $8,627
IRR
Capital Cost 39.2% 35.4% 32.3% 29.7% 27.5%
Operating Cost 35.3% 33.8% 32.3% 30.8% 29.3%
Lithium Price 24.0% 28.2% 32.3% 36.3% 40.1%
Lithium Grade 26.4% 29.4% 32.3% 35.1% 37.9%
Note: IRR (internal rate of return) and NPV (net present value) are both shown after-tax
Figure 2: Bonnie Claire Lithium Project NPV@8% Sensitivity to Varying Lithium Carbonate Price, Lithium Grade,
Capital Costs, and Operating Costs
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Figure 3: Bonnie Claire Lithium Project IRR Sensitivity to Varying Lithium Carbonate Price, Lithium Grade,
Capital Costs, and Operating Costs
Capital Costs
The capital costs for the first 40 years of production are summarized in Table 4. The initial capital costs total
$2,125 million, which includes $354.1 million in contingency.
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Table 4: Bonnie Claire Lithium Project Capital Cost Summary
Item 1000s $
Mine Capital
Borehole Mining Production Equipment $231,900
Borehole Mining Equipment Replacement $363,030
Support Equipment $6,182
Support Equipment Replacement $12,442
Total Mine Capital $613,554
Infrastructure Capital
Access Roads $4,000
Facilities $38,791
Security $650
Utilities $116,775
Fuel System $7,457
Surface Water Management $10,000
Slurry Transport to Plant $6,921
Water Return to Mining $4,455
Tailings Facility $30,119
Freight and Tax $23,232
Total Infrastructure Capital $242,401
G&A Capital
Owner's Costs $26,815
Bonding $11,213
Drilling and Metallurgical Testing $5,000
Feasibility Study/Pilot Project $30,000
Construction Insurance $10,000
Permitting $5,000
Total G&A Capital $88,028
Laboratory Capital
Facility and Equipment $4,973
Total Laboratory Capital $4,973
Plant Capital
Processing Facility $704,405
Sulfuric Acid Plant $175,835
Other Costs and Indirects $489,583
Total Plant Capital $1,369,824
Working Capital $90,935
Sustaining Capital $6,297
Contingency $476,861
Total Capital Costs $2,892,873
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Operating Costs
Operating costs for the Project are summarized in Table 5.
Table 5: Operating Cost Summary
Area
Average Annual
(1000s $)
($/tonne
Li2CO3)
Mine $113,614 $1,822.07
Processing $376,455 $6,037.36
G&A $7,259 $116.41
Contingency $49,733 $797.58
Boric Acid Credit ($123,056) ($1973.50)
Total Operating Costs $424,004 $6,799.92
Mineral Resource Estimate
The PEA incorporates a new Mineral Resource Estimate, which has an effective date of March 31, 2025.
Mineralisation remains open to the NW, NE and SE, increasing in grade and overall thickness in those
directions.
The Mineral Resource Estimate comprises separate estimates of the Lower Zone, characterised by high
grade lithium and boron and the Upper Zone, characterised by moderate-grade lithium and boron.
Lower Zone
The Lower Zone forms a shallowly-dipping sheet approximately 300-350m thick, intersected between
approximately 500-850m depth, and remains open to the NW, NE and SE. The mineral resource estimate
for the Lower Zone is presented in Table 6. The base-case mineral resource is reported at an 1,800ppm
cut-off, based on a reasonable prospect of economic extraction using the underground HBHM method,
assuming a 60% HBHM Recovery.
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Table 6: Bonnie Claire Lower Zone Mineral Resource Estimate With 60% Borehole
Mining Recovery
Class
Lithium Boron
Mass
(Million
Tonnes)
ID2 Li
Grade
(ppm)
Li
(Million
Tonnes)
Li
Carbonate
Equivalent
(Million
Tonnes)
Mass
(Million
Tonnes
B Grade
(ppm)
B (million
Tonnes)
Boric Acid
Equivalent
(Million
Tonnes
Indicated 275.85 3,519 0.971 5.167 275.85 10,758 2.968 16.973
Inferred 1,561.06 3,085 4.816 25.634 1,561.06 9,593 14.976 85.654
1. The effective date of the Mineral Resource Estimate is March 31, 2025.
2. The Qualified Person for the estimate is Terre Lane of GRE.
3. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
4. Mineral Resources are reported at a 1,800 ppm Li cutoff, an assumed lithium carbonate (Li2CO3) price of $20,000/tonne, 5.323 tonnes of
Li2CO3 per tonne Li.
5. The Boric Acid Equivalent calculation assumes 5.719452 tonnes of boric acid per tonne of boron.
6. Numbers in the table have been rounded to reflect the accuracy of the estimate and may not sum due to rounding.
Upper Zone
The Upper Zone forms a sub-horizontal sheet extending from surface to about 425ft (130m) depth, and
remains open to the NW, NE and SE. The mineral resource estimate for Upper Zone is presented in Table
7. The base-case resource is reported at a 900ppm cut-off, based on conventional open-pit methods.
Table 7: Bonnie Claire Upper Zone Mineral Resource Estimate Within a
Constraining Pit Shell
Class
Lithium Boron
Mass
(Million
Tonnes)
ID2 Li
Grade
(ppm)
Li
(Million
Tonnes)
Li
Carbonate
Equivalent
(Million
Tonnes)
Mass
(Million
Tonnes)
B Grade
(ppm)
B (Million
Tonnes)
Boric Acid
Equivalent
(Million
Tonnes
Indicated 188.08 1,074 0.202 1.075 188.08 2,140 0.403 2.302
Inferred 451.10 1,106 0.499 2.655 449.88 1,911 0.860 4.918
1. The effective date of the Mineral Resource Estimate is March 31, 2025.
2. The Qualified Person for the estimate is Terre Lane of GRE.
3. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
4. Mineral Resources are reported at a 900 ppm Li cutoff, an assumed lithium carbonate (Li2CO3) price of $20,000/tonne, 5.323 tonnes of Li2CO3
per tonne Li, 75% recovery, a slope angle of 18 degrees, no royalty, processing and G&A cost of $26.52/tonne, mining cost of $3.52/tonne, and
selling costs of $100/tonne Li2CO3.
5. The boric acid equivalent calculation assumes 5.719452 tonnes of boric acid per tonne of boron.
6. Numbers in the table have been rounded to reflect the accuracy of the estimate and may not sum due to rounding.