Dual-listed Patriot Battery Metals has announced the results of a preliminary economic assessment (PEA) for the Shaakichiuwaanaan project, in the James Bay region of Quebec, Canada.

The PEA outlines a scenario for the staged development of the cornerstone CV5 spodumene pegmatite through both openpit and underground mining methods, thereby maximising earlier access to the high-grade Nova zone. This scenario provides optionality and flexibility to unlock the potential of Shaakichiuwaanaan, formerly known as the Corvette project, to become a leading lithium raw materials supplier in North America.

This study is based on the CV5 pegmatite component of the recently announced updated Shaakichiuwaanaan mineral resource estimate, which is the largest known lithium pegmatite mineral resource in the Americas.

The PEA incorporates a staged development strategy, with Stage 1 targeting production capacity of 400 000 t/y of spodumene concentrate with an estimated initial net capital expenditure (capex) of C$640-million.

This first stage lays a foundation for the project to start production, with a subsequent Stage 2 expansion aimed at doubling the production capacity to 800 000 t/y. The Stage 2 expansion has an estimated net capex of C$408-million.

The combined net cost requirement to reach nameplate production for both Stage 1 and Stage 2 is estimated to be about C$608-million, taking into account cash flows from Stage 1 and proposed CMT-ITC tax credits.

With the production scenario outlined in the PEA, the Shaakichiuwaanaan project could become one of the largest spodumene producers in the world at the completion of the Stage 2 expansion phase, and potentially the largest spodumene producer in the Americas, offering production of SC5.5 spodumene concentrate in a stable jurisdiction.

Using a long-term weighted average spodumene concentrate price of $1 375/t, the PEA demonstrates the potential for robust economics, highlighted by a combined after-tax net present value of C$2.9-billion and after-tax internal rate of return of 34%. The project’s mine life is projected at 24 years, based on a total extracted mineral resource of 66% of total resources defined at CV5, generating significant net cash flows with capital payback achieved in 3.6 years.

Although no final investment decision has been reached for the Shaakichiuwaanaan project, Patriot said the compelling economic potential presented in the PEA, coupled with the expected straightforward nature of the project in terms of geology, pegmatite geometry, mining methodology and processing, supported the company considering to progress a feasibility study.

If a feasibility is progressed, it will be targeted for completion during the September quarter 2025, in parallel with the submission of the project environmental and social impact assessment documentation.

“Although studies are still at an early stage the potential outcomes of the PEA for the Shaakichiuwaanaan project highlight the opportunity for Patriot Battery Metals to become a global lithium leader and a key supplier of lithium raw materials to the emerging North American and European battery materials supply chain,” said CEO and MD Ken Brinsden.

He added that the anticipated low operating costs and expected IRA-compliant high-quality production would make the asset an ideal partner for downstream players.

There is also reportedly strong inbound interest from strategic partners to support Stage 1 funding, alongside potential access to government funding mechanisms.

“The Shaakichiuwaanaan project is potentially well positioned to anchor the North American lithium supply chain, meeting demand for decades to come, in the process targeting significant returns for all our stakeholders while maintaining a strong emphasis on sustainability and limited environmental impact,” said Brinsden.