Initial Assessment, with engineering economic analysis
supported by metallurgical and processing studies, has resulted
in:
- Updated mineral resource estimate of 18.03 million tons
lithium hydroxide monohydrate, with an Inferred
classification
- After-tax cash flows: NPV of $4.41
billion @10% discount, IRR of 65.8%, and payback period of
2.4 years
- A mine life of over 400 years with average annual production
of 33,000 tons lithium hydroxide monohydrate
RENO,
Nev., Dec. 21, 2023 /PRNewswire/ -- American
Battery Technology Company (ABTC) (NASDAQ: ABAT), an
integrated critical battery materials company that is
commercializing its technologies for both primary battery minerals
manufacturing and secondary minerals lithium-ion battery recycling,
is pleased to announce a positive Initial Assessment for its
Tonopah Flats Lithium Project (TFLP) located in Big Smoky Valley,
near Tonopah, Nevada.
In February 2023, ABTC published
its Maiden Resource Report for the TFLP which identified it as one
of the largest known lithium resources in the U.S., and now this
U.S. SEC S-K 1300 Initial Assessment (similar to a Preliminary
Economic Assessment under Canadian NI 43-101 standards) updates
this resource report by also including:
- Additional data from the company's Drill Program II
- Mineral processing and metallurgical testing specifically with
ABTC claystone material
- Capital and operating costs of a commercial-scale
33,000-ton/year lithium hydroxide monohydrate (LHM) facility
- Economic analysis for the lifetime of the project
- Recommended next steps for the TFLP project
"We are excited to have expanded upon our Maiden Resource Report
from this past Spring with this Initial Assessment to further
refine the analysis of the magnitude and quality of this
unconventional, domestic lithium resource, and also to detail the
financial competitiveness of bringing this resource and
commercial-scale lithium hydroxide refinery to market," stated ABTC
CEO Ryan Melsert. "There is
extremely large demand for U.S.-based battery grade lithium
products, especially in the hydroxide form that can enable the
manufacturing of high energy density cathode materials. Enhanced by
the support of our U.S. Department of Energy grants, the economics
of this project are very compelling and result in a full project
payback period of only 2.4 years."
In order to evaluate and standardize the performance of ABTC's
claystone material, initially two conventional processing routes
were employed in empirical trials to manufacture battery grade LHM
from bulk samples collected from the ABTC TFLP resource.
- Low-Temperature, Mineral Acid Process: The Initial
Assessment concluded that with ABTC's claystone material
utilizing a conventional low-temperature mineral acid processing
route, very high lithium recovery efficiencies can be achieved
(>90%), however, as is emblematic of this approach the
selectivity of lithium to other elements was low. This
resulted in the need for complex and chemical reagent intensive
purification and conversion processes to produce battery grade
LHM.
- Salt Roasting Thermal Treatment: The Initial Assessment
concluded that with ABTC's claystone material utilizing a salt
roasting thermal treatment route, moderate lithium recovery
efficiencies can be achieved (>65%), however, the lithium
selectivity was very high and battery grade LHM can be manufactured
with simple and low-cost purification and conversion
processes.
For the purposes of this Initial Assessment, the economic
analysis was performed utilizing the conventional salt roasting
thermal treatment route, as the combination of moderate lithium
recovery, very high lithium selectivity, and simplified
purification and conversion processes resulted in the most
attractive overall production costs.
Independent from these commercially available conventional
processes, ABTC has also developed its own processes for the
extraction of lithium from its claystone materials, the
purification of these lithium intermediates, and their conversion
to battery grade lithium hydroxide crystals. While this Initial
Assessment includes economics from commercially available processes
applied to TFLP claystone material, ABTC intends to utilize the
data from its internally-developed processes in future reports.
ABTC has recently completed a Drill Program III at TFLP
consisting of 8 core drill holes with approximately 6,700 feet of
drilling, and the data from this drill program is not included in
this Initial Assessment. This data will be integrated with
data from earlier drill phases and will be included in a future
updated mineral resource estimate and economic analysis.
TFLP Initial Assessment Highlights
Financial Highlights:
- LHM production cost: $4,636/ton
- Lithium refinery capital costs: $455
million
- Total mine and refinery project capital costs: $1.06 billion
- After-tax NPV, @10%: $4.41
billion
- After-tax Initial Rate of Return: 65.8%
- Project payback period: 2.4 years
- Total 50-year project revenue: $50.0
billion
- Total 50-year operating costs: $9.80
billion
Project and Resource Highlights:
- Lithium resource size, Inferred classification: 18.03 million
tons LHM
- Average lithium hydroxide monohydrate grade: 3,815 ppm
- Total resource size: 5.4 billion tons of claystone
- Average annual production: 33,000 tons LHM
- Project lifetime: 50 years
- Life of Mine: The economic analysis presented in this report
details a project with a life of approximately 50 years, however,
the estimated lithium resources could support a mine life in excess
of 400 years at the mining and processing rates of this Initial
Assessment
- Mining Method: Simple, near-surface open pit mining method with
concurrent reclamation planned to restore land in stages soon after
an area is mined rather than waiting for all mining to be
completed
- Royalties: ABTC owns 100% of the unpatented lode mining claims
comprising the TFLP property with no royalties
Next Steps for Project Commercialization:
- Publication of updated Initial Assessment, including data from
Drill Program III, updated mineral resource assessment, and updated
economic analysis
- Completion of Drill Program IV and publication of
Pre-Feasibility Study (PFS)
- Hydrological and Geotechnical Drill Programs of TFLP
property
- Complete Baseline Environmental Studies and National
Environmental Protection Act (NEPA) review process
- Complete commissioning and begin operations of pilot refinery
system that will process TFLP claystone materials, and utilize this
data from a continuously operating integrated refinery to further
optimize the design of the commercial scale refinery
- Complete engineering design for ABTC's commercial refinery with
Black & Veatch
The information contained in this press release is qualified in
its entirety by reference to the complete text of the Initial
Assessment, including but not limited to the mineral resource
estimates and economic analysis. To read the full ABTC Tonopah
Flats Lithium Project Initial Assessment, visit:
www.americanbatterytechnology.com/projects/tonopah-flats/
Qualified Person
The mineral resource estimates presented in the ABTC Tonopah Flats
Initial Assessment were performed by third-party, qualified person
RESPEC, LLC and were classified by geological and quantitative
confidence in accordance with the Securities and Exchange
Commission (SEC) Regulation S-K 1300.
Initial Assessment
An Initial Assessment is a preliminary technical and economic study
of the economic potential of all or parts of mineralization to
support the disclosure of mineral resources. The Initial Assessment
must be prepared by a qualified person and must include appropriate
assessments of reasonably assumed technical and economic factors,
together with any other relevant operational factors, that are
necessary to demonstrate at the time of reporting that there are
reasonable prospects for economic extraction. An Initial Assessment
is required for disclosure of mineral resources but cannot be used
as the basis for disclosure of mineral reserves.
Inferred Resource
An Inferred Resource is that part of a mineral resource for which
quantity and grade or quality are estimated on the basis of limited
geological evidence and sampling. The level of geological
uncertainty associated with an Inferred Resource is too high to
apply relevant technical and economic factors likely to influence
the prospects of economic extraction in a manner useful for
evaluation of economic viability. Because an Inferred Resource has
the lowest level of geological confidence of all mineral resources,
which prevents the application of the modifying factors in a manner
useful for evaluation of economic viability, an Inferred Resource
may not be considered when assessing the economic viability of a
mining project and may not be converted to a mineral reserve.
About American Battery Technology Company
American Battery Technology Company (ABTC), headquartered in
Reno, Nevada, has pioneered
first-of-kind technologies to unlock domestically manufactured and
recycled battery metals critically needed to help meet the
significant demand from the electric vehicle, stationary storage,
and consumer electronics industries. Committed to a circular
supply chain for battery metals, ABTC works to continually innovate
and master new battery metals technologies that power a global
transition to electrification and the future of sustainable
energy.
Forward-Looking Statements
This press release contains "forward-looking statements" within the
meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. All statements, other
than statements of historical fact, are "forward-looking
statements." Although the American Battery Technology Company's
(the "Company") management believes that such forward-looking
statements are reasonable, it cannot guarantee that such
expectations are, or will be, correct. These forward-looking
statements involve a number of risks and uncertainties, which could
cause the Company's future results to differ materially from those
anticipated. Potential risks and uncertainties include, among
others, risks and uncertainties related to the Company's ability to
continue as a going concern; interpretations or reinterpretations
of geologic information, unfavorable exploration results, inability
to obtain permits required for future exploration, development or
production, general economic conditions and conditions affecting
the industries in which the Company operates; the uncertainty of
regulatory requirements and approvals; fluctuating mineral and
commodity prices, final investment approval and the ability to
obtain necessary financing on acceptable terms or at all.
Additional information regarding the factors that may cause actual
results to differ materially from these forward-looking statements
is available in the Company's filings with the Securities and
Exchange Commission, including the Annual Report on Form 10-K for
the year ended June 30, 2023. The
Company assumes no obligation to update any of the information
contained or referenced in this press release.
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SOURCE American Battery Technology Company
