Name of the Project
Shaakichiuwaanaan (formerly Corvette) lithium project.

Location
Eeyou Istchee James Bay region of Québec, Canada.

Project Owner/s
Lithium project developer Patriot Battery Metals Inc.

Project Description
Patriot believes that the project has the potential to be a long-life lithium asset with unique competitive characteristics.

The August 2024 preliminary economic assessment (PEA) has highlighted its economic potential and strategic advantages, potentially positioning it among the largest producers and as a top-tier, low-cost producer of lithium.

The Shaakichiuwaanaan mineral resource includes the CV5 and CV13 spodumene pegmatites for a total of 80.1-million tonnes at 1.44% lithium oxide (Li₂O) in the indicated category, and 62.5-million tonnes at 1.31% Li₂O in the inferred category for 4.88-million tonnes contained lithium carbonate equivalent. 

The PEA considers the mineral resources from only the CV5 spodumene pegmatite.

The PEA outlines a promising staged development scenario for the cornerstone CV5 pegmatite deposit, using openpit and underground mining methods, to ensure earlier access to the high-grade Nova zone.

Stage 1 will target production capacity of about 400 000 t/y of spodumene concentrate, consequently providing a solid foundation for the project to start production. 

Stage 2 expansion aims to double production capacity to 800 000 t/y.

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.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a potential pretax net present value, at an 8% discount rate, of C$4.7-billion and an internal rate of return of 38% at $1 375/t, with a payback of 3.6 years.

Capital Expenditure
Stage 1 capital expenditure (capex) is estimated at C$761-million for the first 400 000 t/y capacity. Stage 2 capex is estimated at C$504-million to reach a production capacity of about 800 000 t/y of spodumene concentrate.

The combined net cost requirement to reach nameplate production for 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.

Planned Start/End Date
Not confirmed.

Latest Developments
Patriot Battery Metals has completed a private placement, raising C$69-million through a strategic investment from automotive manufacturer Volkswagen. The investment gives the German automotive giant a 9.9% stake in Patriot’s issued and outstanding common shares on a nondiluted basis.

The funds will support exploration, development and the completion of a feasibility study for the project. Additional proceeds will be allocated for general corporate purposes and working capital needs.

The partnership includes several agreements aimed at bolstering the strategic alignment between the two companies. Patriot will supply 100 000 t/y of spodumene concentrate to Volkswagen battery manufacturing subsidiary PowerCo SE for a ten-year term under a binding offtake agreement. 

Volkswagen has also acquired rights to participate in future equity raises by Patriot and a voting support covenant for management, subject to customary conditions, under an investor rights agreement.

Further, a memorandum of understanding aims to establish a strategic relationship between PowerCo and Patriot, focusing on shared objectives such as creating a cost-competitive, sustainable and environmental, social and governance-compliant battery supply chain. The memorandum also explores the potential for government-supported incentives and the development of a chemical conversion facility.

Key Contracts, Suppliers and Consultants
BBA and Primero (PEA) and SGS Canada (testwork).

Contact Details for Project Information
Patriot Battery Metals Inc, tel +1 604 279 8709 or email invest@patriotbatterymetals.com.