Essential Metals told the ASX this week the study was based on a mineral resource estimate of 11.2 million tonnes at 1.16 per cent lithium oxide for 129,000 tonnes, with 81 per cent in the indicated category.
The company said metallurgical testwork also demonstrated the potential to produce a saleable lithium concentrate, while mine optimisation modelling generated economic open pits totalling 8.8Mt of process plant feed at 1.11 per cent lithium oxide, and a mine life of 7.3 years.
Essential said the study assumed three open pits and a 1.2 million tonnes per annum concentrator processing plant, resulting in the production of spodumene concentrate with a targeted lithium grade of 5.7 per cent lithium oxide.
The company said the study, undertaken by engineering firm Primero with input from other experienced consultants and Essential team members, resulted in a base case net present value of $367m.
It estimated pre-production capital costs at $293m.
Essential said the positive results of the study supported starting more detailed studies, taking into account the proposed $136 million takeover of Essential by Tianqui Lithium Energy Australia, which was announced last month.
The objective of the takeover is to secure additional feed for Tianqi’s Kwinana processing plant, and has the backing of the Essential board.
Essential said the study had projected a January 2026 target for first production at Pioneer Dome.
