Lepidico (ASX: LPD) has unveiled the phase one definitive feasibility study for its vertically integrated lithium chemical production plans, with the study revealing a net after tax profit of US$555 million (A$837 million).
The profit is over a 14 year mine life, with pre-production capital costs estimated at US$139 million.
Lepidico’s phase one study evaluates using lithium-mica from its Karibib project in Namibia, which has reserves of 6.7 million tonnes at 0.46% lithium, 2.26% rubidium and 320 parts per million caesium.
The project is fully permitted for redevelopment of two open pit mines that will feed the ore into a mineral concentrator.
Lepidico then plans to ship the concentrated product to a chemical conversion plant it will develop in the Khalifa Industrial Zone Abu Dhabi.
The plant will operate using Lepidico’s proprietary process technologies including L-Max to generate lithium hydroxide for the battery industry along with high-value by-products caesium formate, rubidium sulphate and bulk by-products of amorphous silica, sulphate of potash and gypsum residue for various other end uses.
Lepidico managing director Joe Walsh said the study represented a “major milestone” in advancing the project and “enshrines six years of extensive development work across multiple disciplines”.
“Lepidico’s phase one project represents a unique development opportunity for the production of four valuable alkali metal streams: lithium, caesium, rubidium and potassium.”
He noted this is made possible by Lepidico’s proprietary process technology L-Max with lepidolite as the primary feed.
“LOH-Max further differentiates phase one from other lithium projects by providing a single process step solution for the production of lithium hydroxide without the costly and potentially problematic production of sodium sulphate.”
He added the study had demonstrated the company’s phase one project was “technically robust” – both economically and from a sustainable perspective.
The company would now focus on banking the study to transition the company into development and eventually production.