Patriot Battery Metals Inc. has announced the completion of a Preliminary Economic Assessment (PEA) for its Shaakichiuwaanaan lithium project (formerly known as Corvette) in the Eeyou Istchee James Bay region of Quebec, Canada. The PEA outlines a staged development plan, targeting an initial production capacity of 400,000 tonnes per annum (ktpa) of spodumene concentrate, which could be expanded to 800 ktpa in a later stage. The project is considered one of the largest known lithium projects in North America and is expected to be a major supplier of lithium raw materials to the growing North American and European battery materials supply chains.
The PEA highlights the project’s potential for strong economic returns, including a pre-tax net present value (NPV) of CA$4.7 billion (US$3.6 billion) and an after-tax NPV of CA$2.9 billion (US$2.2 billion) at an assumed lithium price of US$1,375 per tonne. The project is anticipated to have a mine life of up to 24 years with a payback period of 3.6 years. The project’s economic viability is further strengthened by its estimated low operating costs, with an average life-of-mine cash operating cost of CA$510 per tonne (US$387) at the site and a total cash operating cost of CA$736 per tonne (US$560) free-on-board (FOB) Bécancour.
The Shaakichiuwaanaan project is located in a stable mining jurisdiction in Quebec, with access to existing high-quality transportation infrastructure. The project also benefits from the availability of low-cost, renewable energy from Hydro-Québec, which minimizes its environmental footprint. The project’s phased development strategy is designed to leverage the key advantages of the deposit, including its high-grade component in the Nova Zone, which provides flexibility in terms of how the project is progressed.
Patriot Battery Metals plans to continue developing the Shaakichiuwaanaan project, targeting a final investment decision in 2027. The company is considering progressing a Feasibility Study (FS) to further define and optimize the project’s potential economic returns and to explore options for a smaller scale, high-grade focused development scenario, which could be more resilient in a lower price environment. The project’s potential for significant cash flows and its ability to withstand market volatility are expected to attract downstream partners in the industry supply chain who are seeking a stable supply of spodumene concentrate for decades to come. This positions the Shaakichiuwaanaan project as a key player in the development of a global North America & Europe supply chain for lithium.
