Nevada Lithium Announces Robust Preliminary Economic Assessment, Reporting US$6.83 Billion After-Tax NPV, 32.3% After-Tax IRR & 2.8 Year Capital Payback for its High-Grade Bonnie Claire Lithium Project

Core Viewpoint - Nevada Lithium Resources Inc. has announced the results of an updated Preliminary Economic Assessment (PEA) for its Bonnie Claire lithium project, indicating strong economic potential and significant production capabilities over a long mine life [1][4]. Group 1: PEA Overview - The PEA indicates that Bonnie Claire could produce over 62,300 tonnes of lithium carbonate and 129,500 tonnes of boric acid annually over a 61-year mine life [4][11]. - The project shows a 32.3% after-tax Internal Rate of Return (IRR) and a capital payback period of 2.8 years, with a capital intensity of $34,080 per tonne of lithium carbonate [4][11]. - The after-tax Net Present Value (NPV) is estimated at $6.829 billion at an 8% discount rate [11][12]. Group 2: Production and Cost Metrics - The initial capital costs are projected at $2.125 billion, including $354 million in contingency [11][12]. - The operating cost is estimated at $6,800 per tonne of lithium carbonate, with an all-in sustaining cost of $7,936 per tonne [11][12]. - The break-even price for the project is calculated at $8,560 per tonne of lithium carbonate [11][12]. Group 3: Mineral Resource Estimate - The PEA incorporates a new Mineral Resource Estimate effective March 31, 2025, with significant mineralization remaining open to the northwest, northeast, and southeast [2][26]. - The Lower Zone is characterized by high lithium and boron grades, while the Upper Zone has moderate lithium and low boron grades [8][48]. - The estimated mineral resources for the Lower Zone include 275.85 million tonnes at an average grade of 3,519 ppm lithium and 1,561.06 million tonnes at 3,085 ppm lithium for the Inferred category [28][29]. Group 4: Mining and Processing Methodology - The PEA contemplates an underground operation using a Hydraulic Borehole Mining (HBHM) method, targeting a production rate of 8,000 tonnes per day [9][44]. - The processing method involves whole-ore agitated tank leaching using sulfuric acid, achieving leach extractions exceeding 95% for lithium and boron [50][51]. - Overall recoveries are estimated at 85% for lithium and 48% for boron [51]. Group 5: Future Development and Optimization - The company is evaluating multiple areas for optimization, including ore beneficiation, additional critical mineral production, and the impact of new tax provisions from the US HR1 "One Big Beautiful Bill Act" [7][4]. - The potential for higher grades and volumes could positively impact the PEA economics already demonstrated [4][7].