Sigma Lithium Files Ni 43-101 Technical Report FOR Production Expansion Supporting the Previously Announced 60% Increase IN Mineral Reserves and US$ 15.3 Billion NPV
| 1
SIGMA LITHIUM FILES NI 43-101 TECHNICAL REPORT FOR
PRODUCTION EXPANSION SUPPORTING THE PREVIOUSLY
ANNOUNCED 60% INCREASE IN MINERAL RESERVES AND US$
15.3 BILLION NPV
• Sigma Lithium reports that it has filed a Production Expansion Technical Repo rt with the
preliminary feasibility study supporting and validating the news release dated December 4, 2022 ,
as follows:
o Significant potential increase of integrated production of Battery Grade Sustainable
Lithium Concentrate from 270,000 tpa (36,700 tpa LCE) commencing in 2023 to 768,000
tpa (104,200 tpa LCE) in the second year at Grota do Cirilo Project (the “Project”).
▪ After-tax Project NPV8% of US$ 15.3 billion, incorporating production from Phase 1
(in commissioning) combined with Phase 2 and Phase 3.
▪ Total capex for the Project expansion estimated at US$ 155 million .
o An approximate 60% increase of mineral reserves estimate of the Project to 54.8 Mt
grading at 1.44% Li2O to the total National Instrument 43-101 (“NI 43-101”)
o An updated mineral resource estimate comprised of:
▪ 77.0 Mt of measured and indicated mineral resources grading at 1.43% Li2O.
▪ 8.6 Mt of inferred mineral resources grading at 1.43% Li2O.
• At the expanded capacity, the key economics of the Project are as follows:
Year 1 Years 2-8 Years 9-13
Key Metrics & Assumptions Average Annual
Battery Grade Sustainable Lithium Production (t) 277,000 768,200 491,000
All In Sustainable Cash Costs CIF China (per tonne) $458 $539 $491
Financial Metrics Average Annual (US$M)
Gross Revenue $1,599 $3,620 $1,029
After-Tax Earnings $1,233 $2,682 $650
% After-Tax Earnings Margin 79% 76% 65%
VANCOUVER, CANADA – (January 19, 2023) – SIGMA Lithium Corporation (“Sigma Lithium ” or the
“Company”) (NASDAQ: SGML, TSXV: SGML), dedicated to powering the next generation of electric vehicles with
environmentally and socially sustainable high-purity lithium, reports that it has filed a technical report titled “Grota
do Cirilo Lithium Project Araçuaí and Itinga Regions, Minas Gerais, Brazil, Updated Technical Report” (the
“Production Expansion Technical Report ”) outlining preliminary feasibility study supporting the news release
dated December 4, 2022.
Refer to Table s 1 to 3 below for additional details regarding the economic results and updated mineral reserve
and resource estimates of the Production Expansion Technical Report.
Table 1: Combined Project Economic Analysis
| 2
Base Case 5.5% Li2O
Economic Analysis
After-Tax Net Present Value (@ 8% Discount Rate) US$15.3 Billion
Payback Period 1 month
Revenues, Cash Flow and Capex
Project Operating Life 13 years
Battery Grade Sustainable Lithium Run-Rate Production 766,000 tpa
Lithium Carbonate Equivalent Run-Rate Production 104,200 tpa LCE
Average Annual Revenue During Project Operating Life US$2.5 Billion
Average Annual After-Tax Free Cash Flow During Project Operating Life US$1.8 Billion
Costs per tonne of Lithium Concentrate
Total Cash Cost at Production US$401/t
All-in Sustaining Cost (CIF China) US$523/t
Phase 1 Lithium Recovery Rate (DMS) 65.0%
Phase 2 Lithium Recovery Rate (DMS) 57.9%
Phase 3 Lithium Recovery Rate (DMS) 50.6%
Integrated Costs (per tonne of lithium concentrate)
Mining costs US$215/t
Greentech Plant Processing costs US$53/t
G&A costs US$22/t
Transportation costs (Mine to CIF China) US$120/t
Spodumene Ore Mined Feedstock for Greentech Plant
Total quantity mined (plant feed) 54.8 Mt
Annual average run of mine (ROM) plant feed during Project Operating Life 4.2 Mtpa
Table 2: Updated Consolidated Project Mineral Reserves
Consolidated Project Mineral Reserves
Cut-off Grade
(% Li2O) Category Tonnes
(Mt)
Grade
(% Li2O)
Contained
LCE (kt)
0.5% Proven 27.4 1.44% 979
0.5% Probable 27.3 1.43% 962
0.5% Proven & Probable 54.8 1.44% 1,941
Note:
1. Mineral Reserves were estimated using Geovia Whittle 4.3 software and following the economic parameters listed below:
2. Sale price for Lithium concentrate at 6% Li2O = US$ 1,500/t concentrate FOB Mine (Xuxa and Barreiro); US$3,500/t concentrate FOB Mine (NDC).
3. Mining costs: US$2.20/t mined (Xuxa); US$2.19/t (Barreiro); US$2.43/t mined (NDC).
4. Processing costs: US$10.7/t ore milled (Xuxa, Barreiro and NDC).
5. G&A: US$4.00/t ROM (run of mine) (Xuxa, Barreiro and NDC).
6. Exchange rate US$1.00 = R$5.00 (Xuxa and Barreiro); R$5.30 (NDC).
7. Mineral Reserves are the economic portion of the Measured and Indicated Mineral Resources.
8. 82.5% Mine Recovery and 3 .75% Mine Dilution (Xuxa); 95% Mine Recovery and 3% Mine Dilution (Barreiro); 94% Mine Recovery and 3% Mine Dilution
(NDC)
9. Final slope angle: 34° to 72° (Xuxa); 35° to 55° (Barreiro); 35° to 52° (NDC) based on Geotechnical Document presented in Section 16.
10. Strip Ratio = 16.6 t/t waste/mineral reserve (NDC); 12.5 t/t waste/mineral reserve (NDC); 16.0 t/t waste/mineral reserve (NDC).
11. Mineral Reserves have been classified using the 2014 CIM Definition Stand ards. The Qualified Person for the estimate is Porfírio Cabaleiro Rodriguez,
BSc. (MEng), FAIG, an employee of GE21.
12. The estimate of Mineral Reserves may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant
issues.
Table 3: Updated Consolidated Project Mineral Resources
| 3
Updated Consolidated Project Mineral Resources
Cut-off Grade
(% Li2O) Category Tonnes
(Mt)
Grade
(% Li2O)
Contained
LCE (kt)
0.5% Measured 37.1 1.43% 1,312
0.5% Indicated 39.9 1.43% 1,411
0.5% Measured & Indicated 77.0 1.43% 2,723
0.5% Inferred 8.6 1.43% 304
Note:
1. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. Inferred mineral resources are ex clusive of the Measured
and Indicated resources.
2. Mineral Resources have an effective date of October 31, 2022 and have been classified using the 2014 CIM Definition Standards . The Qualified Person
for the estimate is Mr. Marc-Antoine Laporte, P.Geo., an SGS Canada employee.
3. Mineral Resources are reported assuming open pit mining methods, and the following assumptions: lithium concentrate (6% Li2O) price of US$1,500/t,
mining costs of US$2.20/t for mineralization and waste, crushing and processing costs of US$10.70/t, general and administrati ve (G&A) costs of
US$4.00/t, metallurgical DMS recovery of 60%, 2% royalty payment, pit slope angles of 55º, and an overall cut -off grade of 0.5% Li2O.
4. All Resources are presented undiluted and in situ, constrained by continuous 3D wireframe models, and are considered to have reasonable prospects for
eventual economic extraction.
5. Tonnages and grades have been rounded in accordance with reporting guidelines. Totals may not sum due to rounding.
6. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant
issues.
7. Mineral Resources are inclusive of Mineral Reserves
The Updated Technical Report is available on SEDAR ( www.sedar.com), EDGAR ( www.sec.gov) and the
Company’s corporate website. The Updated Technical Report was issued on Jan uary 16, 2023. The Updated
Technical Report was prepared for Sigma Lithium by: Homero Delboni Jr., MAusIMM, Promon Engenharia; Marc -
Antoine Laporte, P.Geo, SGS Canada Inc; Jarrett Quinn, P.Eng., Primero Group Americas; Porfirio Cabaleiro
Rodriguez, (MEng), FAIG, GE21 Consultoria Mineral; and Noel O’Brien, B.E., MBA, F AusIMM.
QUALIFIED PERSONS
The technical and scientific information related to geology and mineral resource estimates in this news release
has been reviewed and approved by Marc-Antoine Laporte P.Geo., M.Sc., of SGS. Mr. Laporte is a Qualified Person
as defined by National Instrument 43-101 and is independent of Sigma Lithium.
The mining and mineral reserve estimates in this news release have been reviewed and approved by Porfirio
Cabaleiro Rodriguez P.Eng, Mining Engineer of GE21 Consultoria Mineral Brazil. Mr. Rodriguez is a Qual ified
Person as defined by National Instrument 43-101 and is independent of Sigma Lithium.
The financial information in this news release has been reviewed and approved by Noel O’Brien B.E., MBA, F
AusIMM, who is a Qualified Person as defined by National Instrument 43-101 and is independent of Sigma Lithium.
ABOUT SIGMA LITHIUM
Sigma Lithium (NASDAQ: SGML, TSXV: SGML) is a company dedicated to powering the next generation of
electric vehicle batteries with environmentally sustainable and high-purity lithium.
Sigma Lithium has been at the forefront of environmental and social sustainability in the EV battery materials
supply chain and it is currently commissioning its wholly owned Grota do Cirilo Project in Brazil . The Project is
expected to produce 766,000 tonnes annually ( or 104,200 LCE annually) of battery grade sustainable lithium
concentrate in a state of the art Greentech lithium plant that uses 100% renewable energy, 100% recycled water
and 100% dry-stacked tailings.
For more information about Sigma Lithium, visit https://www.sigmalithiumresources.com/
| 4
FOR ADDITIONAL INFORMATION PLEASE CONTACT
Jamie Flegg, Chief Development Officer
(Toronto) +1 (647) 706-1087
James Neal-Ellis, Vice President, Corporate Development & Investor Relations
(Toronto) +1 (416) 219-6475
Sigma Lithium
Sigma Lithium
@sigmalithium
@SigmaLithium
FORWARD-LOOKING STATEMENTS
This news release includes certain "forward -looking information" under applicable Canadian and U.S. securities legislation,
including but not limited to statements relating to timing and costs related to the delivery of additional incremental production
at varying grades, NPV, IRR and payback estimates, operating and capital cost estimates, all estimates and assumptions relating
to the economic analysis and financial summary including but not limited to revenue and production estimates, operating life,
plant recoveries and feedstock estimates, lithium prices, mineral resource and mineral reserve estimates (including the
estimates used in preparing the mineral reserve and resource estimates) and the general business and operational outlook of
the Company; and other forward-looking information. All statements that address future plans, activities, events, estimates,
expectations or developments that the Company believes, expects or anticipates will or may occur is forward -looking
information, including statements regarding the potential development of mineral resources and mineral reserves which may or
may not occur. Forward-looking information contained herein is based on certain assumptions regarding, among other things:
general economic and political conditions (including but not limited to the impact of the continuance or escalation of the military
conflict between Russia and Ukraine, and economic sanctions in relation thereto); the stable and supportive legislative,
regulatory and community environment in the jurisdictions where the Company operates; the ability to obtain required financing
on acceptable terms; anticipated trends and effects in respect of the COVID -19 pandemic and post -pandemic; demand for
lithium, including that such demand is supported by g rowth in the electric vehicle market; the Company’s market position and
future financial and operating performance; the Company’s estimates of mineral resources and mineral reserves, including
whether mineral resources will ever be developed into mineral r eserves; and the Company’s ability to develop and achieve
production at its mineral projects. Although management believes that the assumptions and expectations reflected in the
forward-looking information are reasonable, there can be no assurance that the se assumptions and expectations will prove to
be correct. Forward-looking information inherently involves and is subject to risks and uncertainties, including but not limited to
that the Company may not develop its mineral projects into a commercial mining operation; the market prices for lithium may
not remain at current levels; and the market for electric vehicles and other large format batteries currently has limited mar ket
share and no assurances can be given for the rate at which this market will devel op, if at all, which could affect the success of
the Company and its ability to develop lithium operations. There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ materially from those ant icipated in such statements. Accordingly,
readers should not place undue reliance on forward -looking information. The Company disclaims any intention or obligation to
update or revise any forward -looking information, whether because of new information, fut ure events or otherwise, except as
required by law. For more information on the risks, uncertainties and assumptions that could cause our actual results to diff er
from current expectations, please refer to the current annual information form of the Company and other public filings available
under the Company’s profile at www.sedar.com.
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 news release.