Preliminary Economic Assessment for lithium project started
Yesterday morning our lithium exploration Investment Latin Resources (ASX: LRS) announced the early commencement of a Preliminary Economic Assessment (PEA) on its new lithium discovery in Brazil.
LRS has appointed consultants SGS Geological Services (SGS) to carry out the metallurgical test work, JORC resource estimation, and a preliminary economic assessment into the economics of its lithium discovery.
Interestingly, the consultants are the same outfit that delivered a Definitive Feasibility Study (DFS) for LRS’s Brazilian neighbour - lithium developer Sigma Lithium (capped at CAD$2.7 billion).
LRS set out the following indicative timeline for when it expects this work to be completed:
- JORC resource by the end of the 2022 calendar year
- Preliminary economic assessment by March 2023
As soon as these are delivered, LRS is planning to launch straight into a DFS.
Having tucked away a $35M capital raise, LRS ended the June quarter with $33.5M cash in the bank. It is putting its balance sheet strength to use accelerating progress at its new discovery.
With a 25,000m resource definition drilling program being run concurrently we expect to see plenty more drilling newsflow over the coming weeks/months leading up to the maiden JORC resource, which LRS expects to complete by the end of this year.
The gant chart from LRS’s announcement today gives us a good summary of what to expect over the next six months.
