Name of the Project
Salinas lithium project.

Location
Bananal Valley, north-east of Minas Gerais, 600 km north-east of Belo Horizonte, in Brazil.

Project Owner/s
Pilbara Minerals acquired Latin Resources in August 2024.

Project Description
The Salinas project is based on the initial Colina mineral resource estimate of 45.2-million tonnes grading at 1.32% lithium oxide for a proposed 3.6-million-tonne-a-year standalone mining and processing operation, demonstrating strong financial metrics for the project.

The 2023 preliminary economic assessment (PEA) incorporates a Phase 1 and a Phase 2 processing plant, and demonstrates robust combined economics.

Total production over the project’s 11-year mine life is estimated at 4.45-million tonnes of spodumene concentrate grading 5.5% (SC5.5) and 1.35-million tonnes of spodumene concentrate grading 3% (SC3). Yearly production is estimated at 405 000 t and 123 000 t respectively.

The global increase in the mineral resource estimate in December 2023 to 70.3-million tonnes at 1.27% will allow for planning a Phase 3 extension and expansion to the Phase 1 and 2 production profile, which will be evaluated in the definitive feasibility study scheduled to be completed in 2024.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The 2022 preliminary economic assessment envisages an after-tax net present value, at an 8% discount rate, of A$3.6-billion and internal rate of return of 132%, with a capital payback achieved in the first seven months of the project’s life under Phase 1.

Capital Expenditure
Phase 1 capital expenditure, which includes initial capital, including prestrip, is estimated at $253-million. Phase 2 is estimated at $55-million (deferred).

Planned Start/End Date
Phase 1 production is expected to start in 2026, with Phase 2 average production of 525 000 t/y SC5.5 and 159 000 t/y spodumene concentrate grading 3% starting in 2029.

Latest Developments
A definitive feasibility study is expected to be completed by the end of the September quarter.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Latin Resources, tel +61 8 6117 4798 or email info@latinresources.com.au.