Neo Lithium Corp and its Argentinean subsidiary LIEX SA have engaged Worley Chile and Worley Argentina to complete a definitive feasibility study (DFS) of its flagship 3Q lithium brine project in Catamarca, Argentina.
The development strategy for 3Q focuses on production of 20,000 t/y of lithium carbonate with the flexibility to expand production to 40,000 t/y after phase one is completed and operational. The DFS is scheduled for completion in the September quarter of 2021.
Gabriel Pindar, COO of Neo Lithium Corp, said: “On the back of CATL’s investment and involvement, we are very pleased to have engaged and be working with Worley who bring a wealth of lithium knowledge and experience to our 3Q project. Worley is a leading global engineering firm and has been involved in all aspects of lithium brine operations which will be invaluable in executing our DFS.”
Results of the last prefeasibility study (PFS) on 3Q performed by GHD Chile SA and Groundwater Insight Inc outlined a project with 20,000 t/y of lithium carbonate production potential with after-tax net present value (8% discount rate) of $1.143 billion, internal rate of return of 49.9%, and capital expenditure of $318.9 million.
Neo Lithium said the studies carried out by the company in its evaporation pilot plant at the salar site and the lithium carbonate pilot plant in the town of Fiambalá confirm that the general parameters defined in the PFS will be validated in the DFS.
Neo Lithium has been operating pilot evaporation ponds for more than three years, while the pilot lithium carbonate plant has been in operation for nearly two years. This has resulted in a meaningful ramp up in knowledge while improving the process all the way through to validate the PFS and take the project more efficiently into DFS with a view towards future construction, it said.
“As a result of our efforts to maintain steady operations at pilot scale level, we continue to produce our own lithium brine concentrate and lithium carbonate on a regular basis, and believe that we are on track towards our goal of being in production by the later stages of 2023,” the company added.