Rock Tech Lithium Presents Results of First Economic Assessment: Main Resource Zone at Georgia Lake Property with Net Present Value of $312 million, IRR of 62.2%
Rock Tech Lithium Presents Results of First
Economic Assessment: Main Resource Zone
at Georgia Lake Property with Net Present
Value of $312 million, IRR of 62.2%
VANCOUVER
,
Oct. 2, 2018
/CNW/ -
Rock Tech Lithium Inc.
(the "Company" or "Rock Tech")
[TSX-V: RCK;
Frankfurt
: RJIB (WKN: A1XF0V)] is pleased to announce the results of a Preliminary
Economic Assessment ("PEA") at its flagship 100%-owned Georgia Lake lithium property in the
Thunder Bay Mining District of
Northwest Ontario, Canada
. Rock Tech engaged DMT GmbH & Co.
KG ("DMT") to complete the PEA.
Lithium-bearing pegmatite at the Georgia Lake property. (CNW Group/Rock Tech Lithium Inc.)
The results of the PEA include a pre-tax Net Present Value ("NPV") of
$312 million
at a discount rate
of 8% and a pre-tax Internal Rate of Return ("IRR") of 62.2%. The PEA focused on only a portion of
the Georgia Lake project centered around an area referred to as the Nama Creek Main Zone,
excluding additional inferred resources the Company has defined on other areas of the property as
included in the updated resource estimate disclosed on
June 27, 2018
and filed on SEDAR on
August 10, 2018
. In the PEA, DMT covered all relevant topics for the development of the mine and
the production of spodumene concentrate, including project infrastructure, mine design and
operations, recovery, processing and reclamation.
"The completion of the PEA is a key milestone in the development of our Georgia Lake lithium
property," said
Martin Stephan
, Chief Executive Officer of Rock Tech. "We are pleased that the
results confirm our optimism with respect to the project and confirm for our shareholders that their
investments in advancing this project have been a success. Although the PEA focused only on a
portion of our NI 43-101 resource estimate, it shows the real value of our company's assets and
proves the excellent profit potential with an expected annual EBITDA of
$64 million
(CAD) which is
nearly double the current market capitalization."
Highlights from the PEA, with the base-case chemical grade spodumene concentrate of 6.2% lithium
oxide ("Li2O") price of
US$800
per tonne for the first five years and
US$850
per tonne for the next
six years and an exchange rate of
$1.30 USD
/CAD, are as follows (in CAD-$):
Life of Mine Revenue is
$1,136 million
;
Annual EBITDA is
$64.2 million
;
Pre-production capital is
$65.3
;
Sustaining capital is
$62 million
;
Pre-tax NPV (8% discount rate) of
$312 million
and an IRR of 62.2%;
Post-tax NPV (8% discount rate) of
$210 million
and an IRR of 48.1%;
Positive cash flow is realized in Year 3 of the project;
11-year mine life including open pit and underground operations for the Main Resource Zone;
Total production of 1.1 million tonnes of chemical grade spodumene concentrate of 6.2% Li2O
(96.000 t/a).
Summary of Results:
Results
Unit
Value
CAPEX
Million $CAD
65.3
Average LoM Operating Costs
$CAD/tonne concentrate
397
LoM Revenue
Million $CAD
1,136.2
LoM Operating Costs
Million $CAD
419.4
LoM EBITDA
Million $CAD
706.0
Annual EBITDA
Million $CAD
64.2
Pre-tax NPV8
Million $CAD
312.2
After-tax NPV8
Million $CAD
210.2
Pre-tax IRR
%
62
After-tax IRR
%
48
Pre-tax Payback
Years
3.1
After-tax Payback
Years
3.5
All scientific and technical information in this news release was reviewed and prepared under the
supervision of
Karl-Stephan Peters
, EurGeol 787, an independent Qualified Person to Rock Tech.
Rock Tech will file the Preliminary Economic Assessment on the System for Electronic Document
Analysis and Data Retrieval ("SEDAR") within 45 days of this news release.
About DMT GmbH & Co. KG
DMT is a global consortium, providing interdisciplinary services in the Mining, Oil & Gas, Civil
Engineering & Infrastructure and Plant Engineering markets with a client roster that includes
Anglo
American
, BHP Billiton, OMV, E.ON, Schlumberger, De Beers and leading institutes such as The
World Bank and the Asian Development Bank. DMT occupies 30 offices worldwide and belongs to
the German certification agency TÜV NORD GROUP. To date, DMT has completed several
thousand projects in over 150 countries, working in over 25 countries in a typical year.
About Rock Tech Lithium:
Rock Tech Lithium is an exploration company focused on acquiring and exploring properties in the
field of lithium. The Georgia Lake Lithium project develops a lithium-rich pegmatite vein deposit for
the purpose of mining. The deposit was discovered in the Thunder Bay Mining district in
northwestern
Ontario/Canada
, close to the
Lake Superior
, as early as 1955. Rock Tech Lithium has
been working increasingly on the property since 2016 – in a market environment, where the trend for
electric cars on the international market has been rising steeply for years. Analysts expect that more
than 25% of newly sold cars in 2025 will be electrified, with the demand for batteries and therefore
battery metals such as lithium expanding rapidly.
On behalf of the Board of Directors of the Company,
"Martin Stephan"
Martin Stephan
Director, Chief Executive Officer
Neither 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.
Statements included in this announcement, including statements concerning our plans, intentions and
expectations, which are not historical in nature are intended to be, and are hereby identified as,
"forward-looking statements". Forward-looking statements may be identified by words including
"anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company
cautions readers that forward
looking statements, including without limitation those relating to the
Company's future operations and business prospects, are subject to certain risks and uncertainties
that could cause actual results to differ materially from those indicated in the forward
looking
statements.
SOURCE
Rock Tech Lithium Inc.
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For further information:
Brad Barnett, Chief Financial Officer, Rock Tech Lithium Inc., 777 Hornby
Street, Suite 600, Vancouver, B.C., V6Z 1S4, Telephone: (778) 358-5200, Facsimile: (604) 670-
0033, Email: [email protected]
CO: Rock Tech Lithium Inc.
CNW 07:30e 02-OCT-18