Ioneer (ASX:INR) has upgraded its unlevered life of mine by 38% for the Rhyolite Ridge Lithium-Boron Project in Nevada, US after reducing its vat leach retention time from three days to two days.
The project’s updated net present value is marked at US$1.88 billion ($2.88 billion), with an internal rate of return boosted to 16.8%.
By optimising the leach retention time, Ioneer has been able to decrease the project’s acid consumption per tonne processed, which provided a 25% increase to ore processed.
Rhyolite Ridge is now capable of processing 3 million tonnes annually, from a previous rate of 2.4 million tonnes per year.
The economics report predicts the project to produce 25,500 tonnes annually between year three and 25, marking a 20% increase, as well as a 9% increase for boric acid production for a 126,700 tonne output annually for the first 25 years.
Managing Director Bernard Rowe says the company’s ability to increase its annual lithium and boron production has allowed the Rhyolite Ridge Project to provide a material upgrade to the project’s economics.
“Reducing the leach retention time to two days has allowed us to mine and process 25% more ore annually due to the more efficient use of our sulphuric acid,” Rowe says.
“This has resulted in a material increase in production volumes of both lithium and boron chemicals. Importantly, this material improvement does not require additional capital expenditure or change to plant design.”
Following the return of secure equity financing alongside US Government debt valued at US$996 million, the company is looking to drive a final investment decision for the project.
Ioneer predicts a construction phase to take three years from the final investment decision.
Lithium has seen a 9.79% increase in value over the past month, with Trading Economics reporting the price at ¥78,334 ($16,853) per tonne.
Ioneer is a lithium-boron producer focused on developing its Rhyolite Ridge Project to support the US supply chains.
Write to Maddison Elliott at Mining.com.au
Images: Ioneer
