Global Lithium Resources’ (ASX:GL1) Manna-Nova Operation Integration Study has reportedly increased post-tax net present value by 100% to $946 million, transforming project economics through the conversion of the acquired Nova processing facility.
The study confirms a post-tax internal rate of return of 120%, compared to 25.7% in the December 2025 Definitive Feasibility Study (DFS), with the payback period reduced from 3.5 years to 11 months from production start.
Pre-production funding requirements fell 59% to $180.1 million, from $439.1 million in the DFS. Global Lithium says this largely reflects the retention and conversion of Nova’s existing concentrator, tailings facility, power station, and infrastructure.
Managing Director Dianmin Chen says the study confirms the company’s assessment of Nova when it acquired the operation from IGO (ASX:IGO) in July.
“Combining Manna’s lithium resources with existing, commissioned processing infrastructure has changed both the economics and the timeline of this project,” Chen says.
“Converting an operating plant instead of building one from the ground up brings Manna into production sooner and with materially less capital at risk.
“Just as importantly, the value uplift here has not come from taking on more risk — it has come from removing it.”
Under the integrated plan, ore mined at the 100%-owned Manna Lithium Project, 110km east of Kalgoorlie in Western Australia, will be hauled 135km by road to Nova for treatment through a modified 1.8 million tonnes per annum flotation plant.
The acquisition removes the need to construct a greenfield concentrator — the largest capital item in the DFS — while adding ore sorting, magnetic separation, desliming, and a brine pond.
Based on the study, the probable ore reserve increases 8% to 21 million tonnes @ 0.89% lithium oxide (Li2O). Life-of-mine concentrate production totals 2,684 kilotonnes (kt), averaging 257kt of spodumene concentrate grading 5.5% Li2O for the first seven years over a 13-year mine life.
First direct shipping ore shipment is targeted for May 2027, followed by first spodumene concentrate production in mid-2027.
Final investment decision (FID) also remains on track for the December quarter 2026. 70% of production is committed under binding offtake arrangements with Lopal (40%) and Canmax (30%).
C1 cash cost increases to $1,042 per tonne of concentrate, while all-in sustaining cost rises to $1,185 per tonne, reflecting haulage costs. Conventional open pit mining will be supplemented by underground mining beneath the pits from 2031 onwards.
Overall lithium recovery stays at 72.85%, with the study applying a life-of-mine weighted average price of US$1,510 ($2,118.34) per tonne.
Global Lithium holds a binding term sheet with Lopal for a concentrate prepayment facility of up to US$75 million at 5% annual interest, subject to a positive FID.
The company recently completed the divestment of the Marble Bar Lithium Project for up to $14.85 million and remains in advanced talks with investment banks regarding further funding.
Global Lithium Resources is a diversified West Australian lithium explorer and developer with a focus on its fully-owned Manna-Nova Project.
Write to Paula Fabe at Mining.com.au
Images: Global Lithium Resources
