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Base Metals Energy Junior Mining Noram Lithium

Noram Lithium Corp: Zeus PEA shows 31% After-Tax IRR USD$1.299 Billion After-Tax NPV

VANCOUVER, BC / ACCESSWIRE / December 8, 2021 / Noram Lithium Corp. (“Noram” or the “Company”) (TSX – Venture: NRM / Frankfurt:N7R / OTCQB:NRVTF) today announced the summary results of a National Instrument 43-101 compliant Preliminary Economic Assessment (“PEA”) for the high-grade lithium deposit at its wholly-owned Zeus Lithium Project (“Zeus” or the “Project”) located less than 1 mile from Albermarle’s Silver Peak Mine, which is currently the only lithium production facility in the United States. The PEA was prepared by ABH Engineering (“ABH”,) an independent engineering services firm with extensive experience in mining and mineral processing. All dollar values are in US dollars.

PEA Highlights

  • Robust Economics.
    • $1.299 Billion Net Present Value (“NPV”). Base case after-tax Net Present Value (“NPV”) of $1.299 billion (8% discount rate).
    • 31% Internal Rate of Return (“IRR”). Base case after-tax IRR of 31%.
    • Capital Costs(“CAPEX”). Estimated initial CAPEX of $528M with after-tax payback period of 3.23 years.
    • Gross Revenue of $303.4 Million/year
    • Low Operating Cost. Operating Cost (“OPEX”) of $3,355.30/tonne Lithium Carbonate Equivalent (“LCE”) with a break-even price of $4016.6/tonne LCE LOM.
  • Long Mine Life (“LOM). The mine production rate during full operation is set at 17,000 tpd. The production schedule uses ore from the first 11 phases, which results in 40-year mine life (“LOM”). The mine production schedule results in 245.4 million tonnes averaging 1,093 ppm Li.
  • Very Low Strip Ratio. Mining strip ratios are very low, averaging 0.07:1 for LOM. Mining consists of a truck and shovel method, with blasting being unnecessary due to the ore softness.
  • Low Environmental Impact. The leaching and filtration flowsheet includes dry stack tailings, thus, eliminating the environmental risk and long-term management issues associated with tailings ponds.
  • LCE market Price. Base case market price of $9500/tonne LCE is well below long term forecasted rate of $14,000/tonne[1].
  • Price Sensitivity. As noted in the sensitivity chart below, the after-tax NPV reaches $2.665 billion at $14,250/Tonne LCE (8% discount rate).

“We are thrilled with the results of this PEA,” stated Sandy MacDougall, Noram’s Chief Executive Officer and Director. “This study represents the most significant milestone to date for Noram and establishes us among limited peers as the newest low cost, high-grade, near-term lithium producer in North America. I am very pleased with what our team has achieved quickly, on schedule, and at the opportune time considering current and forecasted demand for Lithium Carbonate. This initial economic assessment is the most significant step to date towards our goal of lithium production and provides the market with a benchmark to evaluate our project’s viability and value compared with other lithium developers. We are excited as we enter 2022 pushing aggressively towards the completion of a Pre-Feasibility Study.”

Net Present Value (“NPV”)US$1.299 Billion
Internal Rate of Return (“IRR”)31%
Life of Mine (“LOM”)40 years
Operating Cost (“OPEX”)US$3355.30/tonne
Capital Cost EstimateUS$528 Million
Average Annual Production Lithium Carbonate Equivalent (“LCE”)31,900 tonnes
Average Daily Mine Production Rate LOM17,000 tpd
LOM Production245.4 MT @ 1093 ppm Li
LCE Market Price used in PEA Study*US$9500/tonne
Strip Ratio0.07 : 1.00
Pay Back Period3.23 years
Gross Revenue per YearUS$303.4 Million

PEA Summary

Infrastructure

The project is located next to the Cypress Development’s Clayton Valley Lithium Project and within 1 mile of Albermarle’s Silver Peak Lithium Mine. The Project is accessible via the Silver Peak Road, a two-lane road that connects the Silver Peak mine with Highway 95 to the east. General site infrastructure includes administration, laboratory, warehouse, reagent, comminution plant, and lithium recovery plant. Tailings are to be conveyed to the tailings storage areas for final spreading and contouring by dozers.

Metallurgical Testing

The objective of the metallurgical test program conducted on the Zeus Lithium deposit was to develop a viable process flowsheet to produce lithium carbonate. Information generated during the test program was used to define the process variables. Metallurgical testing began in 2018 at Actlabs Ltd (Actlabs) and AuTec Innovative Extractive Solutions Ltd (AuTec). This PEA report includes metallurgical test work conducted by SGS Canada Inc. in collaboration with ABH Engineering.

The following observations, conclusions and interpretations were obtained from the metallurgical test program:

  • Zeus Lithium deposit ore is soft and disintegrates easily if agitated in water.
  • Sulfuric acid solution effectively leaches lithium at high extraction.
  • Test work achieved 90% lithium extraction at 65°C, 30% solids density and 2 hours residence time.

Mine Option Selection

An ultimate pit of processable material will be created, consuming most of the property area. The ultimate pit has been divided into phases of which the first 11 contain enough resources for 40 years of production at a 17,000 tpd production rate. Resources contained within the entire ultimate pit limits provide enough ore for over 190 years of production at 17,000 tpd. All resources regardless of the material classification are treated equally for the purpose of this study.

An optimized cut-off grade of 850 ppm was used to schedule the processed feed, compared to the economic cut-off grade of 400 ppm. Low-grade ore with grades between the economic cut-off of 400 ppm and optimized cut-off of 850 ppm are scheduled to be deposited in the low-grade ore stockpile. This is done to initially increase the average processed ore grade and improve the overall economics of the project by accelerating higher grade material to earlier years.

CategoryUnitsValue
Gross Revenue$M303.4
Operating Cost$/tonne LCE3,355.3
Capital Cost$M528.0
Property tax% of Capex1.05%
State Tax%Up to 5%
Federal Tax% of net income21%
Discount Rate%8%
Pre-Tax NPV (8%)$M1,675.1
After-Tax NPV (8%)$M1,299.9
Pre-Tax IRR%36%
After-Tax IRR%31%
Payback Periodyears3.23
Break-even Price (0% IRR)$/tonne LCE4,016.6

Economic Analysis for Zeus Lithium Project

Sensitivity Analysis at 8% NPV with Varying Conditions

Measured
Li Cutoff (ppm)Tonnes x 1,000,000Li Grade (ppm)Contained Li (tonnes)LCE (tonnes)
40066.7492761,863329,299
60061.3496459,128314,738
80046.47105148,840259,975
100027.70115031,854169,558
Indicated
Li Cutoff (ppm)Tonnes x 1,000,000Li Grade (ppm)Contained Li (tonnes)LCE (tonnes)
400296.42922272,2971,454,762
600279.66947264,8371,409,728
800221.641007223,1931,188,059
1000103.761128117,044623,023
Measured + Indicated
Li Cutoff (ppm)Tonnes x 1,000,000Li Grade (ppm)Contained Li (tonnes)LCE (tonnes)
400363.15923335,1911,784,222
600341.00950323,9451,724,361
800268.111014271,8651,447,135
1000131.461133148,945792,836
Inferred
Li Cutoff (ppm)Tonnes x 1,000,000Li Grade (ppm)Contained Li (tonnes)LCE (tonnes)
400827.22884731,2613,892,501
600715.91942674,3833,589,743
800546.481013553,5882,946,750
1000265.471134301,0431,602,452

Final Tonnages and Grades of the Classes of Mineral Resources

Qualified Person

The technical information contained in this news release has been reviewed and approved by Brad Peek., M.Sc., CPG, who is a Qualified Person with respect to Noram’s Clayton Valley Lithium Project as defined under National Instrument 43-101.

About Noram Lithium Corp.

Noram Lithium Corp (TSX – Venture: NRM / Frankfurt: N7R / OTCQB: NRVTF) is a Canadian based junior exploration company, with a goal of developing lithium deposits and becoming a low – cost supplier. The Company’s primary business is the Zeus Lithium Project (“Zeus”) in Clayton Valley, Nevada. The Zeus Project has a recently updated resource estimate of 363 million tonnes at 923 ppm lithium measured + indicated resources, and 827 million tonnes lithium at 884 ppm lithium inferred resources (400 ppm Li cut-off).

Noram’s long term strategy is to build a multi-national lithium minerals company to produce and sell lithium into the markets of North America, Europe, and Asia.

Please visit our web site for further information: www.noramlithiumcorp.com.

ON BEHALF OF THE BOARD OF DIRECTORS
Sandy MacDougall
CEO, Director

Investor Relations Contact:
Rich Matthews
Managing Partner
Integrous Communications
rmatthews@integcom.us
+1 604 757 7179

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements regarding, among other things, the completion transactions completed in the Agreement. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, regulatory approval processes. Although Noram believes that the assumptions used in preparing the forward-looking information in this news release are reasonable, including that all necessary regulatory approvals will be obtained in a timely manner, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Noram disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable securities laws.

[1] Lithium Carbonate Price (2015-2040) (Lane, T.; Harvey, J. T.; Fayram, T.; Samari, H.; Brown, J. J.;, 2018)

SOURCE: Noram Lithium Corp.



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NV Gold Appoints Thomas Klein as Vice President of Exploration


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Corporate Presentation

“I am extremely pleased to appoint Thomas to NV Gold’s executive management team as Vice President of Exploration, after assisting the Company as Exploration Manager over the past year,” commented Peter A. Ball, President & CEO of NV Gold. “Thomas’ passion and energy for mineral discovery is amazing to be part of every day and will be the cornerstone in preparing NV Gold for an exciting 2021 and beyond. Leveraging his extensive experience, relationships and knowledge of Nevada exploration strengthens NV Gold’s team, and further improves our opportunity for a significant discovery for our shareholders and will play a key role in advancing our promising mineral property portfolio. In addition, I would also like to welcome Catherine Samson to our geological team in Nevada, who brings a solid depth of knowledge and energy from her most recent roles with Nevada Gold Mines on the Carlin Trend, and Millrock Exploration Corporation in Alaska.”

For further information, visit the Company’s website at www.nvgoldcorp.com or contact:

Peter A. Ball, President & CEO
Phone: 1-888-363-9883 
Email: peter@nvgoldcorp.com


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For further information, visit the Company’s website at www.nvgoldcorp.com or contact:

Peter A. Ball, President & CEO
Phone: 1-888-363-9883 
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“As noted previously, we are focused on delivering one of NV Gold’s most active exploration seasons. The Discovery Bay Gold Project is one of a number of exciting gold projects reviewed internally, and the first acquisition of 2021,” commented Peter A. Ball, President and CEO of NV Gold. “Discovery Bay, with its strategic location and host rocks similar to the multi-million ounce Cove-McCoy Gold Project operated by I-80 Gold Corp., is considered a drill ready advanced gold project at which NV Gold will initiate exploration immediately after drilling is completed at its Slumber Gold Project. I anticipate the acquisition of additional drill ready gold projects to add to our pipeline as we continue our internal review. We continue to discuss other projects within our portfolio for potential joint venture or lease agreements with external parties.”

For further information, visit the Company’s website at www.nvgoldcorp.com or contact:

Peter A. Ball, President & CEO
Phone: 1-888-363-9883
Email: peter@nvgoldcorp.com

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NV Gold Announces Upgrade to OTCQB U.S. Listing


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“Listing on the OTCQB Venture is part of a growing strategy to introduce the Company to a broader investor audience and increase NV Gold’s overall trading opportunities. Trading on the OTCQB will help enhance liquidity by providing our large U.S.-based shareholders and attract future investors with a more transparent and efficient trading platform,” commented Peter A. Ball, President & CEO.

For further information, visit the Company’s website at www.nvgoldcorp.com or contact:

Peter A. Ball, President & CEO
Phone: 1-888-363-9883
Email: peter@nvgoldcorp.com