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.

Century Lithium is actively processing material from Angel Island at its Lithium Extraction Facility (Pilot Plant) in Amargosa Valley, Nevada. While moving toward the completion of a Plan of Operations and subsequent permitting, with the goal to become a domestic producer of lithium for the growing North American electric vehicle and battery storage market.

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

• 17.2% IRR and $3.16 billion NPV (8%) using $24,000/t for Li₂CO₃ and $600/dmt for NaOH
• Phase 2 $ 651 million for 27,000 tpa LCE
• Patent-pending chloride leaching process combined with DLE
• 3-phase production plan generates life-of-mine average of 34,000 tpa of battery-grade Li₂CO₃  
• Proven and Probable Mineral Reserve Estimate totaling 287.65 Mt at an average grade of 1,149 ppm Li containing 0.330 Mt of lithium or 1.759 Mt of LCE
• Measured and Indicated resources totaling 1,138.59 Bt at an average grade of 966 ppm Li containing 1.099 Mt of Li or 5.852 Mt of LCE
• Estimated Capital Costs, production expansions are capitalized with project cash flows
  • Phase 1 $1.537 billion for 13,000 tpa LCE
  • Phase 2 $ 651 million for 28,000 tpa LCE
  • Phase 3 $1.336 billion for 41,000 tpa LCE

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 three equal phases, with nominal production rates of 7,500 tpd for years one through five, 15,000 tpd for years six through ten, and 22,500 tpd for years 11 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.