A preliminary economic assessment (PEA) of Patriot Battery Minerals’ (ASX:PMT) Shaakichiuwaanaan Project in Québec, Canada, outlines its potential to be a “globally significant high-grade” lithium asset.
The assessment outlines a scenario for the staged development of the CV5 spodumene pegmatite via open pit and underground mining methods, thereby maximising earlier access to the Nova Zone.
This scenario provides optionality and flexibility to unlock the potential of Shaakichiuwaanaan to become a lithium raw materials supplier in North America.
Patriot Battery, which has a market capitalisation of $358.42 million, says the Nova Zone is to be targeted and prioritised via underground mining methods, allowing direct access to “higher grade” material and minimising the environmental footprint.
At the targeted stage two production rate of 800,000 tonnes per year spodumene concentrate, this would potentially position the company as the fourth largest spodumene concentrate producer globally.
The assessment revealed the project will have a potential pre-tax net present value of US$3.6 billion ($5.33 billion), with a pre-tax internal rate of return of 38% at US$1,375 per tonne.
Shaakichiuwaanaan will have a payback period of 3.6 years at an assumed average lithium price of US$1,375 per tonne or US$1,500 per tonne, with a 24 year mine life.
CEO Ken Brinsden says although the studies are in the early stages, the potential outcomes of the PEA for the project shows the opportunity for the company to become a global lithium leader and key supplier of lithium raw materials.
“The PEA outlines a staged development pathway for Shaakichiuwaanaan, commencing with an initial 400,000 tonnes per year production capacity which is intended to allow us to leverage the key competitive advantages of this world-class deposit to provide lithium raw materials in emerging western markets,” Brinsden says.
“Importantly, the resources to be mined include a high-grade component in the Nova Zone that creates an opportunity for a potentially resilient project, while also giving us considerable flexibility in terms of how we progress Shaakichiuwaanaan.
“This flexibility and scalability could allow us to adapt nimbly to evolving market conditions, while continuing to grow the resource base.”
Patriot Battery says it will only commit to development after considering the economic conditions that prevail or are foreseeable at the time that an initial production decision is made.
The staged development option will be further assessed in any future Feasibility Studies.
A final investment decision is targeted for 2027, indicatively paving the way for the construction to progress through 2028 and first production beginning in early 2029.
Brinsden adds that the company considers moving to the Feasibility Study stage, Shaakichiuwaanaan’s anticipated low operating costs and expected IRA-compliant high-quality lithium produce could make the company an ideal partner for downstream players.
“There is also strong inbound interest from strategic partners to support stage one funding, alongside potential access to government funding mechanisms,” he says.
“The Shaakichiuwaanaan Project is potentially well positioned to anchor the North American lithium supply chain, meeting demand for decades to come, in the process targeting significant returns for all our stakeholders while maintaining a strong emphasis on sustainability and limited environmental impact.”
The Shaakichiuwaanaan Project, formerly known as the Corvette Property, lies in the Eeyou Istchee James Bay region of Québec, Canada.
Write to Aaliyah Rogan at Mining.com.au
Images: Patriot Battery Metals
