Century Lithium Corp. (TSXV: LCE, OTCQX: CYDVF, Frankfurt: C1Z) declared the completion of its internal Optimization Study, which reviewed and refined the estimated capital expenditures (CAPEX) for the Clayton Valley Lithium Project (now Angel Island) in Nevada. The study identified potential cost reductions of up to 25% from the initial Phase 1 CAPEX of $1.581 billion, enhancing the project’s feasibility and financial efficiency.
Optimization Study highlights leading to the CAPEX reductions:
- Reduced capital costs through changes in flow sheet, equipment selection and updated vendor quotes in the processing areas of filtration, Direct Lithium Extraction (“DLE”) and the chlor-alkali plant
- Internal evaluation of the estimated engineering and construction plans to identify areas of overlap and locations within the plan where modifications of site facilities and elimination of redundancies and inefficiencies can streamline the process from mining to the planned on-site production of battery-grade lithium carbonate (“Li2CO3”)
- Reductions in the estimated cost for on-site services resulting from the changes in processing
- Reduction in estimated indirect costs for contingency and EPCM calculated in the Feasibility Study as a percentage of direct costs as a result of the cost reductions set out above
“We are very pleased with the outcome of the Optimization Study. These results, if confirmed by an updated Feasibility Study, will have a significant impact on the economics of Angel Island,” stated Century Lithium President and CEO, Bill Willoughby. “The Company is also in the process of outlining new initiatives at Angel Island that will further unlock value for our shareholders and place Angel Island in the forefront of lithium resources under development in North America.”
“Lithium remains critical for Western independence in its energy transformation, underpinning the long-term fundamentals of the industry despite current depressed prices. We believe that with these improved economics and its advanced stage of development Angel Island has now become a key asset in the broader United States’ lithium strategy.”
Century Lithium will initiate work on an Updated Feasibility Study for Angel Island to confirm the results of the Optimization Study to the required level. Century Lithium believes that the optimizations to Angel Island’s mine plan and processing, and the sale of surplus sodium hydroxide generated in the production process, will lead to competitive estimated capital and operating costs.
Qualified Person:
Todd Fayram, MMSA-QP and Senior Vice President, Metallurgy of Century Lithium is the qualified person as defined by National Instrument 43-101 and has approved the technical information in this release.
