An announcement made regarding the Shaakichiuwaanaan Project highlighted the potential for a competitive and globally significant high-grade lithium project, with a target production capacity of approximately 800 ktpa of spodumene concentrate. It is important to note that the Preliminary Economic Assessment (PEA) discussed in the announcement is a preliminary study that evaluates the technical, conceptual, and economic feasibility of developing the project through the construction of a concentrate processing facility on site. The PEA is at a scoping study level and is based on lower technical assessment, which is not sufficient for estimating mineral reserves and carries inherent uncertainties.
Approximately 75% of the Life of Mine production falls under the Indicated Mineral Resource category, while 25% falls under the Inferred Mineral Resource Category. The inclusion of Inferred Mineral Resources in the PEA does not solely determine the project’s viability, as these resources are considered geologically speculative and do not guarantee economic viability. Further exploration work and studies are necessary before estimating mineral reserves or providing economic assurances for the project.
The PEA is dependent on various material assumptions, including pricing assumptions, availability of funding, and tax credits under CTM-ITC, which are not certain. The funding needed for Stage 1 and Stage 2 amounts to $869.7 million and $503.8 million, respectively, totaling $1,373.5 million. Despite the company’s history of successful fundraising, there is no guarantee of securing the required funding when needed. Investors are advised not to base their investment decisions solely on the results of the PEA, considering the uncertainties involved.
For more detailed information on assumptions and risks related to the forward-looking statements in the announcement, please refer to the “Disclaimer for Forward Looking Information” section provided at the end of the document.
