Surge Battery Metals (TSX-V:NILI) has released a Prefeasibility Study (PFS) for its Nevada North Lithium Project showing an after-tax net present value of US$9.81 billion ($14.12 billion).
The study, prepared by Fluor Corp as lead engineer, contemplates an open-pit mine producing battery-grade lithium carbonate from lithium claystone ore in Elko County, Nevada, US.
The project is held by Nevada North Lithium, a joint venture owned 67.5% by Surge and 32.5% by Evolution Mining (ASX:EVN).
The PFS delivers an after-tax internal rate of return of 23.6% and operating costs of US$4,719 per tonne lithium carbonate. The after-tax payback period is 4.2 years from production start.
Development will occur in two phases: Phase one will establish a processing plant with design capacity of approximately 55,900 tonnes per annum of battery-grade lithium carbonate. Phase two doubles processing capacity to peak at approximately 111,400 tonnes per annum.
Phase one initial capital is estimated at US$2.77 billion, including US$442 million contingency. Meanwhile, phase two expansion capital is US$2.35 billion. Life-of-mine average production is approximately 92,250 tonnes per annum lithium carbonate over a 42-year mine life.
The mine plan is based on proven and probable mineral reserves of 218.3 million tonnes (Mt) at 3,928 parts per million lithium, containing 4.56Mt lithium carbonate equivalent. Notably, overall process lithium recovery is 84.9%.
“This [PFS] is the product of a tremendous team effort, and it has been a pleasure working alongside the world-class engineers and scientists at Fluor, Kemetco, Sepro, Chemshift, IMC and RESPEC,” President and CEO Greg Reimer says.
“The PFS demonstrates that the NNLP can become a competitive source of domestic lithium production for America’s growing battery industry. Providing not only jobs but over US$11 billion in federal and state taxes and royalties.”
The study shows improved economics compared to the company’s 2025 preliminary economic assessment, with operating costs reduced approximately 10% from the earlier US$5,243 per tonne estimate. Mining costs are approximately US$380 per tonne lithium carbonate, driven by a low waste-to-ore strip ratio of 0.88:1.
Metallurgical testwork by Sepro Laboratories and Kemetco Research produced lithium carbonate assaying 99%, which was refined by Chemshift Technologies to battery-grade product of 99.95%, demonstrating a complete flowsheet from claystone to battery-grade product.
The company plans to commence detailed engineering in the December quarter, targeting an expedited final investment decision and permitting record of decision.
Water rights applications are advancing through Nevada’s permitting process to secure approximately 4,050 megalitres per annum for phase one operations.
Surge Battery Metals is a Canadian explorer advancing lithium claystone projects in Nevada, US.
Write to JC Villarba at Mining.com.au
Images: Surge Battery Metals
