Li-FT Power (LIFT.V) has released the results of the maiden resource calculation on its flagship Yellowknife lithium project in Canada’s Northwest Territories. The initial resource includes just under 50,000 meters of drilling and incorporates all the data from 286 drill holes until the cutoff date of April 2024.
The maiden resource contains 50.4 Million tonnes of tock at an average grade of 1.00% Li2O, representing approximately 1.25 million tonnes of LCE. As the table below shows, the independent consultants used a cutoff grade of 0.4% and 0.5% for the different parts of the deposit. The cutoff grade is based on an anticipated mining cost of US$3.25 per tonne and a processing & transportation cost of US$19.5/t of mineralized material. Interestingly, the anticipated recovery rate is just 60% and we hope the company can do better than that when it publishes its Preliminary Economic Assessment on the project in the second quarter of next year.
The next step will indeed be to complete a PEA and we expect Li-FT to be valued based on the Net Present Value shown in that study. The maiden resource calculation at least shows the size is there and the average grade is okay; perhaps a bit on the lower end of the spectrum of North American hard rock projects, but we don’t expect to see any issues related to the viability of the project when the results of the PEA will be published.
The company may want to raise cash soon to get through the winter and be fully cashed up considering its share price has hit the highest level since June.
Disclosure: The author has a small long position in Li-FT Power and may add to this position if/when the company announces a financing in the next few months. Please read the disclaimer.
