- Bacanora Lithium said Friday it remains on course to begin the construction phase at its Sonora Lithium Project in Mexico in the first half of the year and announced that a feasibility study showed promising results.

The study showed strong economics of US$1.25bn net present value; 26.1% internal rate of return; and life of mine gross operating costs of US$3,910 per tonne lithium carbonate equivalent, comparable to those of the low cost brine producers of South America.

The firm previously announced plans to begin the construction of a 35,000 tpa lithium carbonate operation at Sonora in the first half of 2018, targeting first production in Q1 2020.

'The Feasibility Study in December 2017 confirmed Sonora's credentials to become a world class, low cost producer of battery grade lithium carbonate, and we are focused on realising this potential at the earliest opportunity,' said Bacanora CEO Peter Secker.

'With this in mind, work streams covering FEED, infrastructure, permitting and financing are all progressing concurrently and on schedule so that we remain on course to embark on the construction phase at Sonora in H1 2018.'

'Allowing for an 18 month build out period, this is expected to enable the production of high value lithium products to commence in Q1 2020, which we believe positions Sonora as the next world class lithium mine supplying fast growing markets, such as electric vehicles and energy storage.'

At 9:56am: [LON:BCN] Bacanora Minerals Ltd Ord Npv di share price was +0.5p at 92.5p

Story provided by