Tantalex Lithium Announces Impressive Manono Lithium Tailings Preliminary Economic Assessment With IRR of 87,4% and NPV10 of US$764 Million

Key PEA Highlights

Excellent project economics and financial returns

-          Robust pre-tax NPV10% of approximately $764 million and 87.4% IRR on a nominal basis, and a pre-tax NPV10% of approximately $638 million and 82.3% IRR on a real basis.

-          Rapid payback of 1 year after first production using a Life of Mine spodumene concentrate price of US$2,800/t SC5.5 (FOB, Africa) as forecast by Fastmarkets, an internationally recognized price reporting agency.

-          Project Capital Cost Estimate (CAPEX) of US$147,7M including contingencies,

-          Life-of-Mine (LOM) of 6 years with an estimated annual production of 112,000 t of spodumene concentrate

Low risk plant operation and tailings reclamation

-          Ready to use tailings dump resources to feed beneficiation plant with minimum cost of mining, crushing, grinding, and processing.

-          Process plant nameplate capacity is 1.26Mtpa of run-of-mine (ROM) ore based on robust flowsheet using learnings from other lithium producers.

-          A number of opportunities have been identified to improve capital and operating costs and plant capacity. The exploration program is being finalized with a focus on increasing indicated resources and extending life of project.

Toronto, Ontario, October 6th, 2022 – Tantalex Lithium Resources Corp. (CSE: TTX – FSE: DW8 – OTCQB: TTLXF) (“Tantalex” or the “Corporation”), is pleased to report results from its Preliminary Economic Assessment (‘’PEA’’)for its majority owned Manono Lithium Tailings project in the Democratic Republic of Congo.

The PEA was prepared by Sedgman Novopro of Montreal, Canada with Mineral Resource and Mining contributions from MSA Group in accordance with National instrument 43-101, Standards of Disclosure for Mineral Projects (NI 43-101). An NI 43-101 Technical Report will be prepared and posted on www.tantalexlithium.com and the Company's profile on www.SEDAR+.com within 45 days of the date of this news release.The key financial metrics are compelling, and the Company Board has recommended the Project to proceed to a Feasibility Study.

Eric Allard, President and CEO commented: ‘’This PEA is perfectly aligned with the results of our Maiden Resource Report filed in January 2023. It was our decision to focus our efforts on completing this PEA as a priority which now allows us to progress on our Feasibility and ESIA Studies. We have sized the project scope in order to use existing infrastructures but as the Manono region develops into an important lithium mining region, we are confident that energy and logistics costs will significantly reduce.

Additionally, we will pursue with our resource definition works to increase the Life of Mine on both the Tailings Property and our highly prospective hard rock lithium Pegmatite Corridor.’’

Executive Summary

Key metrics are shown below in Table 1 for the Manono PEA assume a weighted average lithium concentrate price of $2,800 USD/t FOB Africa, based on Fastmarkets average forecast price from 2025-2026 and adjusted for a 5.5% Li2O spodumene concentrate (SC 5.5) product. Lithium price forecast is discussed in more detail in Appendix 1.

Table 1: Key Financial Metrics

The PEA has been completed with the assistance of highly experienced and reputable independent consultants, including:

-          Mineral resource modelling and estimation – MSA Group

-          Flowsheet development, engineering and cost estimation – Sedgman Novopro

The PEA was completed to an overall estimating accuracy of +/-35% (Class 5 estimate) and has a base date of Q4 2023. The Project is based on a 112,167 tpa spodumene mining and processing operation with the Study demonstrating very strong financial metrics. The preliminary economic evaluation indicates the Manono Lithium Tailing Project will generate significant net cash flows over an initial 6-year life-of-mine (LOM) with a capital payback of 1 year following first production.

Sensitivity analysis was completed to determine the impact of various factors on the project economics (see Figure 1). Lithium price has the largest influence on the Project financials. For every 10% increase in the lithium concentrate price, the project NPV10 increases by US$ 133 Million. The Project demonstrates it is resilient to escalation with a 10% increase in the total project cost, reducing the NPV10 by only US$ 14 Million.

Figure 1: Sensitivity Diagram showing the impact of various sensitivities to the Project economics.

Next Steps

The results of the PEA study demonstrate that the Manono Lithium Tailings Project has the potential to be technically and economically viable as a producer of lithium spodumene concentrate. This section lists recommendations for updating the resource, optimizing the process flowsheet and completing a Feasibility Study (FS).

Mineral Resource

A strategy to drill the sloped area of the stacked tailings of the K deposit is currently being investigated, with the aim of providing sufficient data for higher confidence estimates for this material. This would allow to transfer these currently classified inferred resources into the Measured and indicated category.

Recovery Methods

Additional metallurgical testing will be performed during the FS as the bulk samples tested to date are not considered fully representative when compared with the core rejects samples presented in the MRE. New samples for K, G, and I dump, based on the existing drill hole rejects grade and granulometry, have been prepared and sent to laboratory for future metallurgical testing during the FS.

There are several opportunities to optimize the process flowsheet by conducting additional testing of the representative samples. The testing will include as a minimum the following:

-          Confirm DMS parameters on the representative samples;

-          Confirm flotation parameters on the representative samples;

-          Gravity separation for tin and tantalum concentrate recovery;

-          Gravity separation of slimes (-106µm) to recover spodumene, tin and/or tantalum;

-          A technology trade-off for mica removal.

Significant opportunities exist to increase the project robustness and financial metrics, notably:

-          Energy to be taken from the nearby Piana Mwanga hydroelectric dam currently being refurbished

-          Recovery of tin and tantalum contained in the tailings.

The Feasibility Study execution is estimated at $4.0 million and involves additional exploration drilling, mineral processing test work, Geotechnical investigation, completion of the ESIA program, engineering and cost estimation producing an AACE Class 3 estimate. Predicated on a potentially positive FS outcome, an investment decision to develop the Manono Lithium Tailings Project is expected to occur in CY2024.

About Tantalex Lithium Resources Corporation

Tantalex Lithium is an exploration and development stage mining company engaged in the acquisition, exploration, development and distribution of lithium, tin, tantalum and other high-tech mineral properties in Africa. It is currently focused on developing its lithium assets in the prolific Manono area in the Democratic Republic of Congo; The Manono Lithium Tailings Project and the Pegmatite Corridor Exploration Program.

Here you can find the full press release:

https://money.tmx.com/quote/TTX:CNX/news/5869449107674271/Tantalex_Lithium_Announces_Impressive_Manono_Lithium_Tailings_Preliminary_Economic_Assessment_With_IRR_of_874_and_NPV10_of_US764_Million

Cautionary Note Regarding Forward Looking Statements

The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although Tantalex believes that the expectations reflected in forward looking statements are reasonable, it can give no assurances that the expectations of any forward looking statements will prove to be correct. Except as required by law, Tantalex disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.

The Canadian Securities Exchange (CSE) has not reviewed this news release and does not accept responsibility for its adequacy or accuracy.

For more information, please contact: 

Eric Allard

President CEO

Email: [email protected]  

Website: www.tantalexlithium.com

Tel: 1-581-996-3007

Tantalex Lithium Resources Corp.

1410-120, Adelaide St.W

Toronto, Ontario

Canada M5H 1T1