ASX-listed Green Technology Metals has released an optimised preliminary economic assessment (PEA) for its Root lithium project in Canada's Ontario, showing improved economics and a clearer path toward the company’s vertically integrated strategy.

The revised study delivers a 22% increase in net present value to $668-million, driven by lower upfront capital costs, revised pit optimisations, and a shift to a hybrid openpit and underground mining model. The project, now evaluated independently from GT1’s Seymour lithium project, also features a lower strip ratio and an extended mine life.

“The completion of the optimised PEA marks a major milestone for the Root lithium project, confirming it as a technically and economically robust standalone operation,” said GT1 MD Cameron Henry. 

“With a longer mine life, reduced upfront capital requirements, and strong economics, Root is well-positioned to support GT1’s broader strategy of establishing a vertically integrated lithium supply chain in Ontario.”

The company said the new design incorporates a hybrid dense media separation and flotation circuit to produce a 5.5% lithium oxide spodumene concentrate. While more conservative pricing assumptions have slightly lengthened payback periods, reduced pre-stripping costs and lower material movement have improved capital efficiency.

The updated mineral resource estimate at Root stands at 20.1-million tonnes at 1.24% Li₂O, with more than half in theindicated category. New pit shells were modelled at spodumene prices ranging from $400/t to $2 000/t, below the $2 500/t used in the 2023 PEA, reflecting ongoing volatility in lithium markets.

“The economic advantages of executing a project in Ontario are obvious and compelling, driven by outstanding infrastructure, government incentives and proximity to the North American EV supply chain,” said Henry. 

“We remain committed to advancing our Root lithium project to realise our overall strategy in Ontario.”

GT1 said the Root project would provide long-term feedstock for its planned lithium hydroxide conversion facility in Thunder Bay. The company is now focused on advancing permitting and prefeasibility activities.