What's Happening?
PMET Resources has announced the completion of a robust feasibility study for its Shaakichiuwaanaan lithium-only project located in Quebec, Canada. The study outlines a maiden mineral reserve of 84.3 million
tonnes at 1.26% lithium oxide, with a probable reserve of approximately 2.62 million tonnes of lithium carbonate equivalent. The project is expected to produce up to 800,000 tonnes per annum of spodumene concentrate over a 20-year lifespan. The feasibility study supports the upcoming Environmental and Social Impact Assessment submissions, which are crucial for the final mine authorization process. The project aims to position PMET Resources as one of the largest spodumene concentrate producers globally.
Why It's Important?
The completion of the feasibility study is a significant milestone for PMET Resources, as it confirms the technical and economic viability of the Shaakichiuwaanaan project. This development is crucial for advancing the project towards final mine authorization, which will enable PMET to become a key supplier in the lithium market. The project is strategically positioned to support the growing demand for lithium in North American, European, and Asian battery supply chains. With a competitive cost profile, the project demonstrates resilience to market fluctuations, potentially benefiting from future price increases in spodumene concentrate.
What's Next?
PMET Resources plans to submit the Environmental and Social Impact Assessment to federal and provincial regulators, aiming for final mine authorization within 18 to 24 months. The company is also preparing for detailed engineering work to optimize the project schedule and economic outcomes. A final investment decision is targeted for the second half of 2027, contingent on market conditions and strategic partnerships. PMET is actively engaging with potential investors and government stakeholders to secure funding and support for the project's development.
Beyond the Headlines
The Shaakichiuwaanaan project offers potential for co-product recovery, including tantalum and caesium, which could enhance project economics and diversify revenue streams. The project's location in Quebec provides jurisdictional advantages, including access to government incentives and tax credits. PMET's commitment to sustainable development and community engagement is expected to strengthen its position in the critical minerals sector.
