- Bacanora Minerals said results of the feasibility study for the Sonora lithium project in Mexico had confirm the positive economics and favourable operating costs of a 35,000 tonnes per annum (battery grade Li2CO3 operation.

The FS estimates a pre-tax project net present value of US$1.253bn at an 8% discount rate and an internal rate of return of 26.1%, and life of mine operating costs of US$3,910/t of lithium carbonate.

Bacanora chief executive Peter Secker said: 'The FS confirms the company's long held view that Sonora has the potential to become a significant supplier of battery grade lithium to growing industries, such as electric vehicles and energy storage, and at the same time to generate positive value for shareholders.

'The numbers speak for themselves: a US$1.25 billion Pre-Tax NPV, a 26% IRR and, at a US$3,910/t operating cost, a favourable position on the global industry cost curve, which puts Sonora on a par with the lower cost brine operations.

'Thanks to the work we carried out in parallel with the FS, notably the securing of a long term off-take agreement and strategic partnership with leading Japanese trading house Hanwa, the issuance of an environmental permit, and the acquisition of surface rights, we are in a position to commence the development phase of Sonora.

'Our objective is to transform Bacanora into the next significant producer of lithium carbonate and in Sonora we have the asset that we expect to enable us to do so.'

At 8:16am: [LON:BCN] Bacanora Minerals Ltd Ord Npv di share price was +1.5p at 94p

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