The PEA1 provides a compelling case to develop Adina through repurposing the processing facility at Renard
Processing throughput of 4,650 tonnes per day ("tpd") for a dense media separation ("DMS") operation for the duration of the Life of Mine ("LOM")
Average lithium recovery of 67.2% with an average process plant feed grade of 1.24% Li2O (average process plant feed grade of 1.47% Li2O over the first 5 years of production)
Peak production of 332.1 kt spodumene concentrate at 5.5% Li2O content ("SC5.5") in year 4; average yearly SC5.5 production of 255.9 kt over the LOM
60.3% Pre-Tax Internal Rate of Return ("IRR"), 42.9% After-Tax IRR; C$1.7 Billion Pre-Tax Net Present Value8 ("NPV"), C$1.0 Billion After-Tax NPV8; After-Tax Payback Period 1.8 years from start of LOM
Start-up capital cost of C$394.5 Million (includes access road construction direct and indirect costs of C$ 84.3 Million and overall project contingency of C$67.1 Million), start-up capital cost of C$350 Million including Clean Technology Manufacturing Investment Tax Credit ("CTM-ITC") with NPV/capital cost ratio over 2.5
LOM average C1 Operating Cost and All-In Sustainable Cost (pre royalties) per tonne of concentrate (SC5.5) at C$831/t (US$615/t) and C$967/t (US$716/t), respectively
The Project is expected to generate over C$10.0 Billion of gross revenue and C$1.6 Billion in carbon, provincial and federal taxes and Québec mining duties as well as well as create over 500 jobs during construction and 600 direct jobs during operations
The MRE comprises a tonnage of 60.5 million tonnes at a grade of 1.14% Li2O in the Indicated category and 15.9 million tonnes at a grade of 1.17% Li2O in the Inferred category at Winsome's flagship Adina Lithium Project.
1Cautionary Statement - The reader is advised that the PEA summarized in this news release is intended to provide only an initial, high-level review of the Project potential and design options. The PEA mine plan and economic model include numerous assumptions and the use of inferred mineral resources. Inferred mineral resources are considered to be too speculative to be used in an economic analysis except as allowed for by NI 43-101 in PEA studies. There is no guarantee that inferred mineral resources can be converted to indicated or measured mineral resources, and as such, there is no guarantee the Project economics described herein will be achieved. Winsome has an exclusive option to purchase the Renard Operation as detailed in the Press Release of August 1st, 2024. The PEA contemplates usage of the infrastructure at Renard which will only be possible once the option is exercised, and all payments are made as contemplated in the terms of the Option Agreement. Winsome may be eligible for Clean Technology Manufacturing Investment Tax Credit. This legislation has been enacted on June 20, 2024. There is no guarantee the Company will be able to access the CTM-ITC. Investors outside Canada are cautioned that information contained in this announcement may not be comparable to information published by companies subject to the reporting and disclosure requirements of Australian securities laws. In particular, the MRE for Adina used in the PEA was prepared in accordance with the requirements of 43-101 - Standards of Disclosure for Mineral Projects (NI 43-101) and the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) - CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council, as amended (CIM Definition Standards) which differ from the JORC Code on the basis of assumptions.
VAL-D'OR, QC, Sept. 17, 2024 /CNW/ - Lithium explorer and project developer Winsome Resources (ASX: WR1) (Winsome or the Company) is pleased to announce the positive results of a Preliminary Economic Assessment ("PEA") on its 100% owned Adina Lithium Project ("Adina"), based on the proposed acquisition of the Renard diamond mine ("Renard")(together, ''the Project'') and on a National Instrument 43-101 – Standards of Disclosure for Mineral Projects (''NI 43-101'') compliant Mineral Resource Estimate ("MRE"). The full technical report, which is being prepared in accordance with NI 43-101, will be available on SEDAR+ (www.sedarplus.ca) under the Company's issuer profile within the next 45 days.
Winsome Resources logo (CNW Group/Winsome Resources)
This independent study was prepared by Synectiq Inc. (''Synectiq'') under the supervision of Kim-Quyên Nguyên, VP Projects of Winsome Resources Ltd., and included the contributions of other recognized lithium project expertise such as Global Commodity Solutions, DRA Global Limited (''DRA'') and G Mining Services Inc. (''GMS'').
"The detailed inputs to this study mean it provides a robust basis from which to advance the development of Adina. In particular the outcome that the existing and well-maintained Renard facility can be repurposed for a relatively modest capital cost to develop our hard-rock spodumene resource is a major benefit. Importantly it offers a significant commercial advantage that will see the facility operate through market fluctuations and commodity cycles.
"The ease of mining mineralized material at Adina via an initial low strip open pit along with the simple DMS flowsheet results in a competitive operating cost estimate which optimisation may improve further.
"Winsome has a clear pathway to production outlined by the study, underpinned by well-planned strategic initiatives like the exclusive option to acquire Renard. Given the global challenges facing the market, we believe our approach, combined with our world-class Adina asset, is positioning the Company for long-term returns to shareholders, stakeholders and importantly First Nations in the Eeyou Istchee James Bay region and the Province of Québec.
"Winsome Resources is proud to have achieved this key milestone, marked by positive results. Winsome sincerely thanks all the teams who contributed to this success. Thanks to their expertise, enabled Winsome to achieve this important objective. The Company will now proceed to the next stage of development of its Adina Lithium Project. The team will focus on advancing the Project while continuing to conduct due diligence in preparation for acquiring Renard.", comments Chris Evans, Managing Director.
"We are especially pleased to quantify the economic benefits that the Project could bring to Québec and its host communities. We intend to pursue our discussions with all stakeholders and First Nations, in order to improve our Project and collaboratively plan sustainable operations that respect communities and the environment.", comments Geneviève Morinville, VP Sustainability and Regulatory Affairs.
"This success reflects everyone's commitment, and we are grateful for all our efforts. This step is crucial for Winsome Resources. The PEA allows us to thoroughly analyze the Project and make informed decisions at each subsequent phase. We're delighted to see that the results are positive and encouraging for the future, and we'd like to thank all those who worked so hard to achieve our objectives", comments Carl Caumartin, General Manager Canada.
"Having progressed from a grassroots outcrop discovery to 75+Mt of mineralized pegmatite and completing a PEA within two years demonstrates the quality of work accomplished by our dedicated team. We are thankful to everyone who contributed to achieving this significant milestone, including Winsome's geological crew and our partners Forage Nouchimi-RJLL, Heli Explore, MSA Labs, SGS Canada, Services MNG and Technominex." adds Antoine Fournier, VP Exploration.
This press release has been authorized for issue by the Managing Director of Winsome Resources Limited.
ABOUT WINSOME RESOURCES
Winsome Resources (ASX: WR1) is a Canadian focused exploration and development company with several projects in the Eeyou Istchee James Bay region of Québec. Our flagship project is Adina, a 100% owned lithium resource considered a tier-one asset in a low-risk mining jurisdiction and one of the most capital efficient projects in North America with competitive operating costs. The hard rock spodumene lithium deposit is near surface with a +20 year project life and a substantial Mineral Resource.
The Company recently acquired an exclusive option to purchase the Renard Operation, a mining and processing site located approximately 60 kilometres south (in a straight line) of Adina. The facility has an established airport, power station, water treatment plant, workshops, processed mineralized material storage and substantial camp. It also has several mineral processing and operating permits which may advance Winsome's pathway to lithium production. Importantly Renard already includes extensive production facilities including Dense Media Separation (DMS), upfront jaw, cone, high-pressure grinding rolls and mineralized material sorting circuits necessary for spodumene concentrate production.
In addition to our portfolio of lithium projects in Québec, including the Cancet, Sirmac-Clapier and Tilly Projects, Winsome Resources owns 100% of the offtake rights for lithium, caesium and tantalum from the Case Lake Project in Eastern Ontario owned by Power Metals Corp (TSXV:PWM), as well as a 19.6% equity stake in PWM.
Winsome is led by a highly qualified team with strong experience in lithium exploration and development as well as leading ASX listed companies.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This document contains forward-looking statements concerning Winsome. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward-looking statements as a result of a variety of risks, uncertainties and other factors. Such forward-looking statements include, but are not limited to, all statements relating to the contents of the PEA, such as the project's potential, capital and operating costs, production summary and financial analysis; statements concerning the Company's expectations with respect the exercise of Winsome's exclusive option to purchase the Renard Operation and the timing of such acquisition; to continued resource growth through projected drilling; expected mining method and results; and expectations with respect to other activities, events or developments that the Company expects or anticipates will or may occur in the future. Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management's perceptions of historical trends, current conditions and expected future developments, results of further exploration work to define or expand any mineral resources, as well as other considerations that are believed to be appropriate in the circumstances. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to the ability of exploration activities to accurately predict mineralization; the ability to complete further exploration activities and the results of exploration activities; the ability of the Company to obtain required approvals; risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory, including environmental regulation and liability and potential title disputes.
Forward-looking statements in this document are based on the Company's beliefs, opinions and estimates of Winsome as of the dates the forward-looking statements are made, and no obligation is assumed to update forward-looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.
NON-IFRS AND OTHER FINANCIAL MEASURES
This document refers to C1 Operating Costs and All-In Sustaining Costs (AISC) per tonne. These are non-IFRS financial measures and non-IFRS financial ratios. The Company believes that these measures provide additional insight, but these measures are not standardized financial measures prescribed under International Financial Reporting Standards ("IFRS") and therefore should not be confused with, or used as an alternative for, performance measures calculated according to IFRS. Furthermore, these measures should not be compared with similarly titled measures provided or used by other issuers. The non-IFRS financial measures and non-IFRS financial ratios used in this document are relatively common to the mining industry.
Quality control and data verification protocols
Pegmatite zones were sampled at approximately 1m intervals with sample lengths adjusted to honour geological contacts to aid representativeness. Quality Assurance and Quality Control procedures utilised standard industry practice, using certified reference materials (CRMs) for lithium, field blanks, duplicates sampled in the field and pulp duplicates at the laboratory. CRMs were submitted at a rate of approximately 20%, whereas blanks, duplicates and repeat assay determinations were submitted at a rate of approximately 5%. Samples were bagged and sealed with numbered tags, in order to maintain a chain of custody. The sample bags were transported from the site to either SGS or MSA Labs preparation facilities in Val-d'Or, Québec. Sample preparation at the laboratory (SGS & MSA) entailed crushing, milling and splitting to achieve a 250g sub-sample for assay. Laboratory QC procedures for sample preparation include quality control on checks crushing and milling to ensure representativeness. Analysis was done using Sodium Peroxide fusion followed by combined ICP-AES and ICP-MS analyses (56 elements). Li is reported by the lab and converted to Li2O for reporting using a factor of 2.153. All results included in the MRE passed the QA/QC screening at the lab. Following reporting of results by the laboratory Winsome's geologists verified that all inserted CRMs and blanks returned results that were within acceptable limits. Data verification is carried out by the Project Geologist on site, and a final verification was performed by the VP Exploration and the geologist responsible for database management. An independent verification was carried out by the QP prior to commencing the MRE.
