Announcement • Jul 02
Consolidated Lithium Metals Completes Updated Preliminary Economic Assessment For The Kwyjibo Underground Mining Project
Consolidated Lithium Metals Inc. announced the results of the Updated Preliminary Economic Assessment for the Kwyjibo Rare Earth Oxide Project, located in Québec's Côte-Nord region. The Updated PEA confirms the Project's competitive economic fundamentals while incorporating significant engineering improvements that substantially reduce the Project's long-term surface footprint compared with the preliminary economic assessment prepared by DRA Americas Inc. for SOQUEM dated August 2, 2018. Key highlights of the Updated PEA include: Underground mine, access road and off-site hydrometallurgical complex with a minimal surface footprint, designed to produce approximately 10,000 tonnes of rare earth oxides per year over a 10-year mine life. Estimated rare earth basket revenue of CAD 79.75 per kg of REO (Adamas Quarterly 2031) with operating costs of CAD 17.50 per kg of REO. Mineral Resource of 8.48 million tonnes @ 2.45% total rare earth oxides (Measured & Indicated), plus 1.825 million tonnes @ 3.27% TREO (Inferred). Kwyjibo hosts an uncommon, rare-earth distribution of 45.5% critical REO, consisting of 24.5% Dy-Tb-Y, and approximately 20% NdPr. Favourable deposit mineralogy eliminates the need for conventional energy-intensive cracking or roasting and, together with a simplified hydrometallurgical flowsheet, contributes to an estimated total project power requirement of approximately 35 MW, reflecting one of the lowest projected energy requirements among comparable hard-rock rare earth development projects. Hydrometallurgical complex located near Québec's low-cost hydroelectric grid, with nearby hydroelectric power plant. The Updated PEA is based on the mineral resource estimate for the Kwyjibo Rare Earth Element Project, with an effective date of June 25, 2026. The estimate was prepared in accordance with the 2014 CIM Definition Standards and forms the basis for the Updated PEA. The Kwyjibo deposit comprises two principal mineralized zones, Josette Northeast and Josette Southwest, which together contain a high-grade rare earth resource enriched in both light and heavy rare earth oxides. The Kwyjibo Rare Earth Element Project comprises 81 mineral claims covering 4,388 hectares and hosts a Mesoproterozoic iron oxide copper-gold (IOCG)-style polymetallic system enriched in iron, rare earth elements, copper and gold. Mineralization is concentrated within the Josette Horizon, consisting of the Josette Northeast and Josette Southwest zones, with a mineralization over approximately 1.2 km of strike and to a depth of 300 m. The deposit remains open at depth and along portions of strike. The Josette Northeast Zone represents the principal mineralized zone and contains approximately 48% of the Combined Measured and Indicated Mineral Resource, with an average grade of 3.42% TREO, including 1.11% HREO and 0.69% Nd2O3 + Pr2O3. The Josette Southwest Zone contributes an additional 4.343 million tonnes of Measured and Indicated resources grading 1.53% TREO, providing additional mineable inventory and operational flexibility. Collectively, the two zones contain a Combined Measured and Indicated Mineral Resource of 8.48 million tonnes grading 2.44% TREO, including 1.65% LREO, 0.80% HREO, 1.09% CREO (consisting of 0.49% Nd2O3 + Pr2O3 and 0.6 % Tb2O3 + Dy2O3 + Y2O3), together with an Inferred Mineral Resource of 1.825 million tonnes grading 3.27% TREO. The Mineral Resource Estimate is based on 109 surface drill holes totaling 19,168m, supported by 4,962 analytical samples and 886 specific gravity measurements. Geological interpretation, three-dimensional wireframe modelling and grade estimation were completed using industry-standard methodologies, including 1.5 m composites, 10 m × 10 m × 5 m block dimensions and inverse distance squared (ID²) interpolation within constrained mineralized. The magnetic separation at the concentrator is designed to produce a 7.00% TREO concentrate with a recovery of 96%. The recovery of TREO from concentrate processed at the hydrometallurgical plant is 78%. The overall TREO recovery is estimated at 75%. The Updated PEA, prepared by DRA Americas Inc, covers the mining and milling of rare earth element-bearing magnetite material from an underground mine, with a mine life of 10 years and a concentrator located at the Kwyjibo hydrometallurgical complex. The processing includes crushing, grinding, magnetic separation, thickening and filtering of run-of-mine. The Total Rare Earth Oxides will be produced at the hydrometallurgical complex. The hydrometallurgical processing plant is designed to transform REE concentrate into five separate refined Rare Earth Oxide products for an annual production rate of 10,000t of TREO. The hydrometallurgical process leaches the concentrate in three steps using solid conversion and is completed by a multi-stage solvent extraction process to produce five REO products: Dy oxide, Tb oxide, Nd oxide, Pr oxide, Y oxide and a mix of the remaining REO. The technical information in this press release has been reviewed and approved by Mr. Daniel Gagnon, P. Eng. of DRA Americas Inc. who is independent from the Company. The Mineral Resource Estimate, which forms the basis of the Updated PEA, was prepared by S. Ibrango, P.Geo., PhD, MBA, Sr Geologist for DRA Americas Inc., an “independent qualified person” as defined in NI 43-101. The technical information on metallurgical test work and hydrometallurgy was reviewed and approved by Mr. Eric Larochelle, P.Eng., President of SMH Process Innovation. Mr. Larochelle is independent from the Company. The technical content of this news release was reviewed and approved for the Company by Serge Perreault, P.Geo. (00318), Senior Technical Advisor, who is a “qualified person” as defined in NI 43-101 – Standards of Disclosure for Mineral Projects.
