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Preliminary Economic Assessment Filed on SEDAR

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Lithium South Development has filed a Preliminary Economic Assessment report on SEDAR for its Hombre Muerto North Lithium Project in Argentina. The report supports plans for a 15,600 tonnes per year lithium carbonate plant with strong financial projections, including a Net Present Value of US$938 million and an Internal Rate of Return of 31.6%.

Lithium South Development ha presentato un rapporto di Valutazione Economica Preliminare su SEDAR per il suo progetto di litio Hombre Muerto North in Argentina. Il rapporto supporta i piani per una fabbrica di carbonato di litio da 15.600 tonnellate all'anno con proiezioni finanziarie solide, inclusi un Valore Attuale Netto di 938 milioni di dollari USA e un Tasso Interno di Rendimento del 31,6%.
Lithium South Development ha presentado un informe de Evaluación Económica Preliminar en SEDAR para su Proyecto de Litio Hombre Muerto Norte en Argentina. El informe respalda los planes para una planta de carbonato de litio de 15,600 toneladas por año con proyecciones financieras sólidas, incluyendo un Valor Actual Neto de US$938 millones y una Tasa Interna de Retorno del 31.6%.
리튬 사우스 디벨롭먼트는 아르헨티나의 옴브레 무에르토 노스 리튬 프로젝트에 대한 예비 경제 평가 보고서를 SEDAR에 제출했습니다. 이 보고서는 연간 15,600톤의 리튬 카보네이트 공장 계획을 지원하며, 순현재가치(Net Present Value)는 9억 3천 8백만 미국달러, 내부수익률(Internal Rate of Return)은 31.6%로 강력한 재무 전망을 제시하고 있습니다.
Lithium South Development a déposé un rapport d'évaluation économique préliminaire sur SEDAR pour son projet de lithium Hombre Muerto Nord en Argentine. Le rapport soutient les plans pour une usine de carbonate de lithium de 15 600 tonnes par an avec des prévisions financières solides, y compris une Valeur Actuelle Nette de 938 millions de dollars US et un Taux de Rendement Interne de 31,6%.
Lithium South Development hat einen vorläufigen Wirtschaftlichkeitsprüfbericht auf SEDAR für sein Hombre Muerto North Lithiumprojekt in Argentinien eingereicht. Der Bericht unterstützt die Pläne für eine Lithiumkarbonatanlage mit einer Jahreskapazität von 15.600 Tonnen und zeigt starke finanzielle Prognosen auf, einschließlich eines Netto-Präsentwerts von 938 Millionen US-Dollar und einer internen Rendite von 31,6%.
Positive
  • Strong financial projections with a Net Present Value of US$938 million and an Internal Rate of Return of 31.6%.

  • The report supports the development plans for a 15,600 tonnes per year lithium carbonate plant.

  • The extraction and recovery process for the project is based on an industrial proven method of lithium production.

Negative
  • None.

VANCOUVER, B.C. , April 30, 2024 /PRNewswire/ -- Lithium South Development Corporation (the "Company" or "Lithium South") (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) is pleased to announce it has today filed on SEDAR plus, its Preliminary Economic Assessment ("PEA report') following the summary results previously announced March 03, 2024. The report titled, N.I. 43-101 Preliminary Economic Assessment Hombre Muerto North Lithium Project, Salta, Argentina, was completed by Knight Piesold Consulting and JDS Energy and Mining Inc., both industry leading independent engineering consulting firms.

The PEA Report provides support for Lithium South to proceed with development plans for a 15,600 tonnes per year lithium carbonate plant, located at its wholly owned, Hombre Muerto North Lithium Project ("HMN Li Project") in Salta, Argentina. The extraction and recovery process for the project is based on conventional solar evaporation of the well brine, magnesium removal with slaked lime and lithium carbonate precipitation using soda ash, which is an industrial proven method of lithium production.

The financial model shows a Net Present Value after tax of US$938 million, an after-tax Internal Rate of Return of 31.6%, and a 2.5-year payback.

Summary of Economic Results

Company Founder President and CEO, Adrian F. C. Hobkirk is quoted, "We are very pleased to have achieved this important milestone for the HMN Li Project. The robust economics and room for expansion indicate a promising future for Lithium South."

About Lithium South

Lithium South owns 100% of the HMN Li Project located in Salta and Catamarca Provinces, Argentina, in the heart of the lithium triangle. The Salar del Hombre Muerto has a history of lithium production, with Arcadium Lithium (as a result of the Alkem and Livent merger) in operation for over twenty-five years, in an area just south of the HMN Li Project. The HMN Li Project is surrounded by a US$4 billion lithium development under construction by POSCO (Korea) and the Sal de Vida Project under development by Arcadium. Exploration work to date has delineated a National Instrument 43-101 compliant 1,583,200 tonne Lithium Carbonate Equivalent ("LCE") Resource (Note 1) on the Alba Sabrina, Natalia Maria, and Tramo claim blocks, three of five non-contiguous blocks that make up the HMN Lithium Project. With pumping well installation underway, Lithium South is transitioning from being a lithium explorer to becoming a lithium developer.

Qualified Person Statements

Peter Ehren is an independent Lithium Consultant. He has more than two decades of experience in the industry. He started his interest in the lithium business during his master's thesis at Technical University of the Delft where he investigated for BHP Minerals the recovery of lithium from geothermal brine (Salton Sea), applying a Direct Lithium Extraction ("DLE") technology. After his thesis he worked for SQM as a process engineer and R&D manager till 2007.  Since 2007 he started to work as independent consultant in the lithium, boron and potassium industry. He is a world expert in solar evaporation systems, phase chemistry and process developments.  Additionally, his experience covers product applications, OPEX and CAPEX estimation, process simulations, engineering, R&D and product development. He has worked in lithium basins and production facilities worldwide. He is a Chartered Professional (AusIMM) and QP for NI 43-101 and JORC.

Dr. Mark King, Ph.D., F.G.C., P.Geo., of Groundwater Insight, Inc., is the QP for resource estimation components of the PEA., as such term is defined by NI 43-101. Dr. King has extensive experience in salar environments and has been a QP on numerous lithium brine projects, ranging from early exploration to production. Dr. King is independent from the Company and has reviewed and approved the technical information mentioned in this press release.

Richard Goodwin, P.Eng., Project Manager for JDS Energy and Mining, Inc., is independent of Lithium South and a QP as defined under Canadian National Instrument 43-101. Mr. Goodwin is a mining engineer and study manager with over 30 years of experience managing mining operation and projects in various commodities such as base metals, precious metals, PGMs, and diamonds in various domestic and international locations. Mr. Goodwin is responsible for the PEA results, participated directly in the production of this press release, and directly related information in this press release, and approves of the technical and scientific disclosure contained herein.

On behalf of the Board of Directors
Adrian F. C. Hobkirk
President and Chief Executive Officer
Investors / Shareholders call 855-415-8100 / website:lithiumsouth.com 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has not reviewed the content of this news release and therefore does not accept responsibility or liability for the adequacy or accuracy of the contents of this news release.

Note 1: A report titled, Updated Mineral Resource Estimate – Hombre Muerto North Project, NI 43-101 Technical Report Catamarca and Salta, Argentina, Mark King, PhD, PGeo, Peter Ehren, M.Sc, MAusIMM, September 5th, 2023.

This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities and Exchange Act of 1934, as amended. Except for statements of historical fact relating to the Company, certain information contained herein constitute forward-looking statements. Forward-looking statements are based upon opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors which could cause actual results to differ materially from those projected in the forward-looking statements.  The reader is cautioned not to place undue reliance on forward- looking statements.  We seek safe harbor.

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SOURCE Lithium South Development Corporation

FAQ

What is the title of the report filed on SEDAR by Lithium South Development ?

The report is titled N.I. 43-101 Preliminary Economic Assessment Hombre Muerto North Lithium Project, Salta, Argentina.

Who completed the Preliminary Economic Assessment report for Lithium South?

The report was completed by Knight Piesold Consulting and JDS Energy and Mining Inc.

What are the financial projections mentioned in the press release?

The projections include a Net Present Value after tax of US$938 million, an after-tax Internal Rate of Return of 31.6%, and a 2.5-year payback period.

LITHIUM SOUTH DEV CORP

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