Exploration and development company Wildcat Resources on Tuesday announced the results of a prefeasibility study (PFS) for its Tabba Tabba project in Western Australia, confirming its potential as a long-life lithium mine with robust economics.

The PFS outlined a pre-tax free cash flow of A$4.57-billion and a post-tax net present value of A$3.27-billion based on a consensus spodumene price of $1 384/t (free-on-board basis). The project has an internal rate of return of 26.6% and a post-tax payback period of 5.4 years.

Wildcat plans a two-stage development with Stage 1 establishing a 2.2-million-tonne-a-year openpit operation and Stage 2 expanding the project to 4.5-million tonnes a year through the addition of underground mining. Average production is targeted at 295 000 t/y of 5.5% Li₂O spodumene concentrate in Stage 1, increasing to 565 000 t/y in Stage 2. Total life-of-mine production over 17 years is expected to reach 6.1-million tonnes.

The project’s A$443-million infrastructure capital expenditure includes a front-end crushing circuit and back-end dewatering and concentrate handling infrastructure to support both stages. An additional A$144-million in pre-strip costs are scheduled in the first year.

“At current consensus prices, the PFS confirms Tabba Tabba’s potential as a globally significant lithium asset,” said Wildcat general manager for project development James Dornan. “The flexibility of the project to scale up or down in a changing lithium environment is of particular note.”

The ore reserve is made up of 79% openpit ore from the Leia deposit and 21% underground ore from the Luke and Leia areas. Underground mining is expected to improve overall project economics and provide greater flexibility in mine sequencing and ore supply.

MD AJ Saverimutto said the PFS reinforced Tabba Tabba as one of the leading undeveloped lithium projects globally.

"With granted mining leases, proximity to port, large-scale high-confidence resource, and financials that place us in the lowest quartile for operating costs, the project is exceptionally well positioned.”

The PFS did not include the Chewy, Han, Hutt or Tabba Tabba deposits, which are currently undergoing metallurgical and processing studies for potential inclusion in the definitive feasibility study (DFS).

Wildcat said it was fully funded to complete the DFS and a final investment decision, with A$55-million in cash as of June 30.

Employment is expected to exceed 500 people during construction and 600 at peak production.