Goulamina Lithium Project obtains final approval

Mali Lithium Limited has announced its world-class, 100% owned Goulamina Lithium Project has been granted an Operating (Mining) permit by the Malian government, completing the final regulatory hurdle for the project. Mali Lithium Limited is developing the world-class Goulamina Lithium Project in Mali, West Africa.

The permit is granted under the Malian Mining Code, covers the Company’s entire Torokoro Permit for the Exploitation of Lithium and has been granted for a period of thirty (30) years, renewable in intervals of ten (10) years until depletion of the reserves within the permit area.

Goulamina is the largest uncommitted hard rock lithium mineral reserve in the world, with 31.2 million tonnes at 1.56% lithium oxide (Li₂O) of probable reserves and the project is on track for the completion of the Definitive Feasibility Study, followed by a Final Investment Decision in the second half of next year.

The Pre-Feasibility Study completed last year outlines a large high-grade reserve with a minimum 16-year mine life for the project, producing 362,000 tonnes per annum of 6% Li₂O in spodumene concentrate at attractive costs.

Mali Lithium, formerly Birimian Limited, is a lithium company focused on the development of the Goulamina Lithium Project in Mali.

While its current focus is on advancing the world-class Goulamina Lithium Project to production, the Company also holds the Massigui Gold Project and the prospective Dankassa Gold Project, all situated in southern Mali.

Goulamina is one of the world’s largest uncommitted hard rock Lithium Reserves. The company is currently completing its Definitive Feasibility Study and has released the results of its Pre-Feasibility Study on the project in 2018. The Company also has a diversified commodity portfolio containing prospective gold tenements in southern Mali from which it intends to generate near term value for shareholders.

The Pre-Feasibility Study has demonstrated excellent project economics and significant potential for further upside. It confirms that Goulamina can be profitably developed as a large scale, low cost, hard rock lithium mine to produce a competitive product to capitalise on current commodity market trends.

The recommended development scenario comprises an open cut mining operation and a 2Mtpa mineral concentrating plant. Following are the key highlights from the PFS:

• Goulamina can be profitably developed as a large scale, low cost hard rock lithium mine and the PFS recommended progression to a Bankable Feasibility Study which is in progress;
• The Project is scoped to produce 362,000tpa of 6% Li²O spodumene concentrate;
• The study demonstrated excellent forecast financials including pre-tax NPV₁₀ of A$920M (US$690M) and pre-tax IRR (real) of 49.5%;
• LOM project EBITDA (real) of A$2,691M (US$2,018M), which translates to average annual EBITDA of $171M (US$128M);
• LOM net cash flow from operations (pre-tax, real) of A$2,359M (US$1,769M), which translates to average annual net cash flow from operations of $150M (US$112M);
• Maiden Ore Reserve of 31.2Mt at 1.56% Li₂O defined, derived from Indicated Mineral Resource of 43.7Mt at 1.48% Li2O supports a 16-year operating life at 2Mtpa;
• A long mine life with strong potential for extension through exploration upside and conversion of existing Inferred Mineral Resources;
• Average LOM operating cash cost (Brook Hunt C1) of A$374/t (US$281/t). Roskill ranks Goulamina as the 3rd lowest C1 cost project globally (hard rock lithium deposits); and
• Short payback period of 2.6 years, including production ramp-up period.

The financial model is based on revenues derived from sales of a combined dense media separation (DMS) and flotation concentrate. It is assumed that all concentrate will be 100% payable and priced on a contractual basis with the average real price achieved LOM anticipated to be A$888/t (US$666/t) FOB Abidjan.

Mali Lithium intends undertaking further infill and extension drilling later aimed at increasing the Project’s Ore Reserves and will also carry out further resource extension and definition drilling of the Company’s other identified pegmatite systems at Goulamina.