Standard Lithium Ltd. [AMEX: SLI] has shared the positive outcomes of a Preliminary Economic Assessment (PEA) for the Company’s South-West Arkansas (SWA) Lithium Project. Previously, the “Project” was named the Tetra Project. The firm has also shared the update of Inferred Mineral Resource at the South-West Arkansas Lithium Project.
The firm disclosed that the execution of this PEA for the SWA Lithium Project is an important achievement for Standard Lithium as it commences to present the substantial potential that is present within the Smackover Formation in southwestern Arkansas. This PEA is the outcome of a collaborative team effort.
The key points of the results are that pre-tax reached US$2.83 Billion NPV at an 8% discount rate and IRR of 40.5% and after-tax is US$1.97 Billion NPV at an 8% discount rate and IRR of 32.1%. Furthermore, the results showed that the 20-year mine-life generating an average of 30,000 tonnes per year of battery-quality lithium hydroxide monohydrate (LHM).
In addition, the results disclosed that SW Arkansas Lithium Project PEA lithium brine resource is revised to take into consideration the potential unitized area of production, leading to an amplified total in-situ resource of 1,195,000 tonnes Lithium Carbonate Equivalent (LCE) at the Inferred Category.
Standard Lithium contemplates that appealing potential economics from this PEA backed continued effort to de-risk and promote the SWA Project in line with the Company’s immediate focus, which is to provide the first new lithium production facility in North America at the Lanxess facilities.