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Grounded Lithium’s Kindersley Project Shows Strong Economic Potential for Lithium Hydroxide Production

Grounded Lithium (TSXV: GRDOTCQB: GRDAF) has released its preliminary economic assessment (PEA) for the Kindersley lithium project, revealing a promising case for producing battery-grade lithium hydroxide monohydrate (LHM) with potential for future expansion.

Phase one of the project, located in Saskatchewan, demonstrates an after-tax internal rate of return (IRR) of 48.5% and an after-tax net present value (NPV) of $1.0 billion at an 8% discount rate. The initial capital investment required for the project is estimated at $335 million, with a projected payback period of 3.7 years.

The Kindersley project differentiates itself with lower capital intensity compared to other North American brine-based lithium ventures, with an initial capital intensity of $30,500 per tonne of LHM. The projected all-in operating costs for the project are estimated at $3,899 per tonne of LHM, resulting in an annual expenditure of $42.9 million.

Based on the PEA, the project aims for an annual production output of 11,000 tonnes of LHM, assuming a sales price of $25,000 per tonne.

Grounded Lithium CEO Gregg Smith expressed optimism about the project’s independent economic results, stating that they compare favorably within the lithium mining industry in terms of capital and operating expenses.