Name of the Project
PAK lithium mine project and lithium chemicals conversion facility.

Location
North of Red Lake, in Ontario, Canada.

Project Owner/s
The project is a joint venture (JV) between Frontier Lithium and Mitsubishi Corporation.

Under the terms of the JV, signed on March 2, 2024, Mitsubishi will acquire an initial 7.5% interest in the project for C$25-million. 

Upon completion of the definitive feasibility study (DFS), Mitsubishi will have the right to increase its interest in the JV to 25% through additional shares at a price based on the net value of the project as shown in the DFS.

Project Description
The project contains North America’s highest-grade lithium resource and is the biggest in Ontario by size. 

The PAK site includes: the PAK and Spark openpits, rock dumps, a concentrator plant complex, a tailings management facility, electrical distribution, offices, a camp, a warehouse, maintenance, effluent treatment and an airstrip. The chemicals plant site will be located in the Thunder Bay region and will comprise the chemicals plant and analytical facilities, as well as product and consumable handling infrastructure. 

The 2023 prefeasibility study (PFS) proposes the construction of a hydromet plant that will convert spodumene concentrate feedstock, sourced from a vertically integrated spodumene openpit mining and milling facility at Frontier’s PAK lithium project over a 24-year mine life.

The PFS demonstrates the production of 7 360 t/y of battery quality lithium carbonate and 12 520 t/y of battery quality lithium hydroxide monohydrate. This will support the growth of electric vehicles manufacturing in the region.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The PFS estimates a pretax net present value, at an 8% base case discount rate, of $2.59-billion and an internal rate of return of 28.6%, with an after-tax payback of 4.9 years after the start of commercial operations.

Capital Expenditure
The May 2023 PFS estimates total capital expenditure of $468-million for the technical grade concentrator, and expansion capital of $576-million for the chemical-grade concentrator and chemical plant, including a contingency of 20%.

Planned Start/End Date
To be confirmed.

Latest Developments
Frontier Lithium is using funding from its JV partnership with Mitsubishi to progress the project towards a vertically integrated DFS, which is targeted for completion in 
2025.

Key Contracts, Suppliers and Consultants
BBA E&C Inc, in conjunction with Halyard Inc, WSP Golder, Ian Ward Consulting Services and Environmental Applications Group (PFS).

Contact Details for Project Information
Frontier Lithium, tel +1 705 897 7622.