Sensitivity Analysis: Sensitivity analysis indicates that the Project is highly profitable.
| Lithium Argentina AG, Scoping Study Report |
|---|
| PPG Salars, Argentina | 357 |
|---|
| § | Brine: The Project pumps subsurface brine to extract lithium, which is a proven and cost-effective method compared to hard rock mining. |
| § | Lithium: The PPG Project has over 15,077,000 tons of measured and indicated (M+I) LCE resources, enough to support a production rate of 153,000 TPA LCE for a nominal 30-year life. |
| § | Convenient accessibility and available utilization: The Project site is located 70 km away from energy pipeline. The flat and featureless ground over which the feeder pipeline is to be built reduces pipeline construction cost and complexity. |
| § | Pricing Estimate: Sensitivity analysis indicates that the Project is economically viable even under unfavorable pricing conditions. |
| § | SX (DLE) strengths vs conventional process |
| § | The application of RIGI results in a US$0.9 billion increase of NPV, compared with the case without RIGI, and an IRR improvement of 7.6%. |
Some project risks list as follows:
| § | Location: Elevation: The Project site is at a high elevation, approximately 4,000 m above sea level, which can result in difficult work conditions for those not accustomed to high altitudes. Medical oxygen tanks are readily available for staff travelling to and working at the mine site. |
| § | Weather Dependence: Unpredictable weather, including heavy rains and long winters in recent years, could affect the evaporation cycle in the ponds. |
| § | Process Implementation: The process is specialized to the type of brine in the salar and there is no other industrial operation running the same process configuration. Mitigation measures include dedicated steps for removing impurities and purifying the solution. |
| § | Process System Design and Supplier Expertise: Equipment and facilities are custom-designed for this unique process and the high-altitude, high-wind environment. Tests at additional suppliers and a pilot plant are recommended before placing equipment orders. |
| Lithium Argentina AG, Scoping Study Report |
|---|
| PPG Salars, Argentina | 358 |
|---|
| 20.1 | Other Properties in Pozuelos |
There is one other tenements within the greater Pozuelos area. The borate mine named Mina San Mateo (file 64005) is located in the northeastern portion of the Pozuelos. According to the Land Registry Records Office (March-2022), Mina San Mateo is owned by Minera Santa Rita, which is a holding group dedicated to the extraction, production and international marketing of borates, that operates the property intermittently.
Figure 218 illustrates the location of the Mina San Mateo tenements relative to the PPG tenements.
