#Canada #Denison Mines #Calgary #Grounded Lithium #Kindersley Lithium

Grounded Lithium Advances Kindersley Lithium Project with Pre-Feasibility Study Results

Grounded Lithium Corp. (GLC) has taken a significant step forward in its Kindersley Lithium Project (KLP) by releasing the results from a recent pre-feasibility study (PFS) prepared by Stantec Consulting Ltd. This study is crucial in evaluating the project's potential for lithium extraction in Southern Saskatchewan, focusing on advanced technical de-risking and economic assessments.

Key Highlights of the Pre-Feasibility Study

The newly unveiled PFS represents a landmark achievement as it documents the first-ever declaration of mineral reserves for lithium in the Kindersley area. Specifically, it covers only 36 sections, which is about 13% of the entire area included in the project, emphasizing the vast potential yet to be explored.

In terms of numbers, the PFS reveals that the KLP has estimated mineral reserves totaling 82,499 tonnes of lithium carbonate equivalent (LCE) with an annual production target of approximately 3,200 tonnes per year. Further, it exhibits an anticipated internal rate of return (IRR) of 10.8% and a net present value (NPV) of C$125 million in the project economics.

De-risking Measures

An impressive aspect of this study is the thorough technical analysis involved. The assessment utilizes advanced reservoir production modeling based on data collected in prior years, significantly boosting confidence in the economic feasibility of lithium extraction from subsurface brines. Furthermore, previous preliminary economic assessments conducted in 2023 laid the groundwork for this PFS, ensuring its findings are sound and credible.

The completion of this PFS marks the consolidation of various aspects of project management including geology, chemistry, and extraction technologies. The implications of these advancements are pivotal for both GLC and its project partner, Denison Mines Corp. Their shared expertise and commitment to rigorous technical analysis have reduced various risks associated with lithium extraction, iteratively enhancing the project's economic landscape.

Financial Overview

The anticipated pre-production capital costs for the KLP are projected to exceed C$600 million, reflecting a significant investment in engineering design and project advancement. Supported by a Class 4 cost estimate, this range indicates a varying degree of precision in forecasted expenses. The overall financial analysis remains favorable, even though production estimates have been adjusted to align with more grounded expectations.

Annual operating expenditures are expected to average around C$27.2 million. The project anticipates a unit operating cost of C$8,581 per tonne of LCE produced. Even with these figures, the overall economic outlook for KLP remains robust, supported by positive forecasts due to anticipated advancements in production efficiency and technology adoption.

Future Prospects

Beyond the established reserves, ground-level assessments indicate that an extensive exploration program could further enhance both the mineral reserves and production rates. GLC is poised for future drilling initiatives aimed at upgrading inferred resources to indicated statuses, which could substantially alter the KLP's operating scope and profitability. With the area exhibiting a promising mineralization profile, there exists potential for exploration success.

Together, GLC and Denison Mines are laying the foundation for a new lithium industry in Canada, presenting both local economic benefits and a sustainable path toward mineral resource development. As the KLP moves closer to execution, the economic viability of lithium extraction will not only serve stakeholders but also support global energy transition initiatives aimed at greener technology.

In conclusion, the release of this pre-feasibility study marks a transition for the Kindersley Lithium Project. By emphasizing rigorous technical de-risking and financial feasibility, Grounded Lithium Corp. continues its mission to establish itself as a leading player in the Canadian lithium market while contributing positively to local economies and the broader push for sustainable energy solutions.