Lithium Americas Corp. Increases Thacker Pass Reserves by 286%

By Tamara Parker • Tuesday, January 07 10:37 • Permanent Link

Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) has announced a significant increase in the mineral resource and mineral reserve estimate for the Thacker Pass lithium project in Humboldt County, Nevada. The proven and probable ("P&P") mineral reserve estimate of lithium carbonate equivalent ("LCE") has increased by 286% since the November 2022 feasibility study, reaching 14.3 million tonnes at an average grade of 2,540 parts per million ("ppm") lithium ("Li").

Additionally, the measured and indicated ("M&I") mineral resource estimate for Thacker Pass now stands at 44.5 million tonnes LCE at an average grade of 2,230 ppm Li, marking a substantial 177% increase since the November 2022 feasibility study.

The expansion plan targets a production capacity of 160,000 tonnes per year of battery-quality lithium carbonate ("Li2CO3") in four phases of 40,000 t/y each, with a sulfuric acid plant. The project is expected to have an 85-year mine life and incorporates a direct rail line from Winnemucca to Thacker Pass as part of the phase 4 expansion.

In terms of project economics, the average annual EBITDA for the production scenario is estimated at $2.2 billion per year, with the base case at $2.1 billion per year. These figures are based on a price assumption of $24,000 per tonne of Li2CO3.

Following these announcements, the company's shares moved 0.9%, and are now trading at a price of $3.44. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.