Angel Island

The lithium resource at Angel Island is exposed to the surface and comprises lacustrine sedimentary units of the Pliocene Esmeralda Formation. These units were uplifted by the Angel Island Fault and geologically sheltered from erosion by Angel Island, a prominent uplifted geological feature of much older Cambrian metavolcanic and clastic rocks immediately east of the Angel Island Fault protruding through and rising over 100 m above the lacustrine sediments.

The Company has developed a patent-pending process that incorporates hydrochloric acid leaching combined with direct lithium extraction to produce battery-grade lithium carbonate. As part of the integrated chlor-alkali process, Angel Island is designed to produce sodium hydroxide as a co-product, with planned surplus sales expected to lower operating costs, reduce reliance on externally sourced reagents, and minimize environmental impacts.

Century Lithium is advancing Angel Island through the permitting process, including the submission of a Mine Plan of Operations, with the goal of becoming a domestic producer of lithium carbonate for the growing North American electric vehicle and battery storage markets.

Feasibility Study Highlights (after-tax, US$): 

• After-tax NPV (using 8% discount rate) of $4.01 billion based on price assumptions of $24,000 per tonne (“/t”) for lithium carbonate (“Li₂CO₃”) and $750/dry metric tonne (“dmt”) for Sodium Hydroxide (“NaOH”)
• After-tax internal rate of return (“IRR”) of 27.4%
• Integrated patent-pending processing flowsheet, incorporating hydrochloric acid leaching, Direct Lithium Extraction (“DLE”), chlor-alkali processing, and on-site production of battery-grade lithium carbonate, validated through four years of pilot plant operations in Nevada
• Large, long-life U.S.-based lithium development project, with Proven and Probable Reserves supporting a mine life exceeding 60 years
• Economic analysis based on a 40-year production schedule, with planned life-of-mine average production of approximately 26,500 tonnes per annum (“tpa”) of battery-grade lithium carbonate
• Initial Phase 1 throughput of 7,500 tonnes per day (“tpd”), expanding to 15,000 tpd in Year 5 (Phase 2)

Disclosure: Mineral resource and reserve estimates were prepared in accordance with the CIM Best Practice Guidelines and reported in accordance with the CIM Definition Standards. Except for the purposes legislated under Canadian provincial and territorial securities law, any use of, or reliance on, the above referenced report by any third party is at that party’s sole risk.

Notes: IRR – internal rate of return, NVP – net present value, Li2CO3 – lithium carbonate, NaOH – sodium hydroxide, t – tonne, dmt – dry metric tonne, LCE – lithium carbonate equivalent, DLE – direct lithium extraction, ppm – parts per million, Li – lithium, tpa – tonne per annum, tpd – tonnes per day, Bt – billion tonnes, Mt – million tonnes.

• These characteristics led to a straightforward and cost-effective mine plan design with a low strip ratio of 0.21:1, minimal overburden, and no internal waste. Mining of the consolidated sediments will be free-digging, and no drilling or blasting will be required, further reducing estimated costs and potential environmental impacts.

Processing

• A key component of Angel Island is the deposit’s chemistry, which is very amendable to chloride-based leaching to liberate lithium from the claystone.
• A chlor-alkali plant will produce the primary reagents hydrochloric acid (HCl) and NaOH on-site from the electrolysis of a sodium chloride (NaCl) solution. The chlor-alkali plant has important environmental and economic benefits integral to the sustainability of Angel Island. These benefits include replacing molten sulfur, from oil and gas operations, with regionally sourced salt, reduction in emissions and the physical footprint of the operation, and dryer non-sulfate tailings.
• The chlor-alkali plant will generate significant quantities of NaOH surplus to operational needs which will be sold for operational credit, these estimated sales represent a significant offset to the Angel Island’s operating costs.

Capital and Operation

• Angel Island will be constructed in two equal phases, with nominal production rates of 7,500 tpd for years one through four and expanding to 15,000 tpd for years five through forty. 
• This approach was selected to minimize capital exposure and risk by dividing the production schedule into logical phases of construction and equipment installation. The production plan fully utilizes Angel Island’s Mineral Reserve and subsequent production expansions will be capitalized with project cash flow.

Environmental Studies and Permitting

• Updating draft Plan of Operations with baseline study and engineering deliverables.
• Preparation of key state permits underway.
• Alternate locations were modeled for a process-water supply closer to Angel Island within the parameters of the Company’s water rights permit in Clayton Valley, Nevada.

Angel Island Funding

• Communicating with prospective strategic partners and end-users of Li₂CO₃ for testing our product samples.
• Pursuing parties interested in marketing or acquiring a future supply of NaOH, the sales surplus NaOH is estimated to significantly offset production cost of Li₂CO₃.
• Compiling Angel Island data to support applications for government funding opportunities available through the U.S. Department of Energy and U.S. Department of Defense.