Consolidated Lithium Metals Inc. (TSXV: CLM | FRA: Z36 | OTCQB: JORFF) announced the results of its Updated Preliminary Economic Assessment for the Kwyjibo Rare Earth Oxide Project in Quebec's Côte-Nord region. The updated study confirms robust economics with a pre-tax internal rate of return of 46.5% and a post-tax IRR of 35.4%, while significantly reducing the long-term surface footprint compared to the 2018 PEA prepared by DRA Americas Inc. for SOQUEM.
Project Overview and Economics
The Kwyjibo project is designed as an underground mine with an off-site hydrometallurgical complex, producing approximately 10,000 tonnes of rare earth oxides per year over a 10-year mine life. The estimated rare earth basket revenue is CAD $79.75 per kg of REO (based on Adamas Quarterly 2031), with operating costs of CAD $17.50 per kg of REO. Total development capital is estimated at CAD $881 million, with sustaining capital of CAD $25.2 million and closure capital of CAD $8.0 million.
The project generates a pre-tax net present value (NPV) at 8% of CAD $2,403 million and an after-tax NPV of CAD $1,401 million. Payback period is 1.6 years pre-tax and 2.0 years after-tax, with total pre-tax cash flow of CAD $4,843 million and after-tax cash flow of CAD $2,966 million.
Resource and Mineralogy
The mineral resource estimate includes 8.48 million tonnes at 2.45% total rare earth oxides in the Measured and Indicated category, plus 1.825 million tonnes at 3.27% TREO in the Inferred category. The Kwyjibo deposit features an uncommon rare-earth distribution with 45.5% critical rare earth oxides, comprising 24.5% dysprosium, terbium, and yttrium, and approximately 20% neodymium and praseodymium. These critical rare earths represent 91% of projected project revenue.
According to the company, the favourable deposit mineralogy eliminates the need for conventional energy-intensive cracking or roasting. Combined with a simplified hydrometallurgical flowsheet, the total project power requirement is estimated at approximately 35 MW, one of the lowest among comparable hard-rock rare earth development projects.
Infrastructure and Environmental Footprint
The hydrometallurgical complex will be located near Quebec's low-cost hydroelectric grid, with a nearby hydroelectric power plant less than 10 km away and two high-voltage transmission lines within 3 km. The mine surface footprint is only 2.67 hectares, and no residues will be stored at the mine site. Processing facilities are off-site, further reducing environmental impact.
During construction, the project is expected to create 700 direct jobs and 300 indirect jobs in the region. CLM is committed to consulting with the Innu of Takuaikan Uashat Mak Mani-Utenam, the Innu of Ekuanitshit, and local communities throughout the MRC de Minganie to assess and plan the project.
Forward-Looking Statements
Consolidated Lithium Metals is advancing the Kwyjibo project under a definitive option agreement with SOQUEM Inc., through which the company may earn up to an 80% undivided interest. The updated PEA represents a significant milestone in demonstrating the project's economic viability while minimizing environmental impact.
