Global Lithium Resources (ASX: GL1), today released robust results of an optimised Definitive Feasibility Study (DFS) on its flagship Manna Lithium Project (Manna or MLP), 110 kilometres east of Kalgoorlie in the Eastern Goldfields region of Western Australia.
The DFS confirms Manna as a long-life and economically robust lithium asset, further enhancing Global Lithium’s progress toward future development with strong exposure to a critical mineral in the electrification of global economies.
The DFS for Manna incorporates extensive work to enhance project economics, systematically de-risk future development and position Manna for a Final Investment Decision (FID) in a disciplined manner, leveraging what has been a year of significant milestones for the project development team which include the grant of Mining Lease1 M28/414 and the signing of a Native Title Mining Agreement2 with the Kakarra Part B Native Title Group.
DFS Highlights
- Post-tax NPV8 of A$472 million – at US$1,400/t SC6.0 CIF price assumption and AUD:USD 0.67 exchange rate;
- Post-tax IRR of 25.7%;
- Payback period of 3.5 years;
- Breakeven price of US$784/t SC6.0 (EBITDA=0) – demonstrating significant project resilience;
- Competitive operating costs – DFS projects a competitive LOM all-in sustaining cost (AISC) of US$738/t (SC5.5) excluding sea freight and insurance;
- Capital efficiency – total preproduction capital expenditure (CAPEX) estimated at A$439.1 million;
- Significant resource confidence and long mine life – Manna confirms its position as the third largest lithium deposit in the Eastern Goldfields;
- 51.6 million tonnes (Mt) at 1.00% Li2O3 – total Mineral Resource Estimate (MRE); and
- 19.4 Mt at 0.91% Li2O Maiden Ore Reserve – underpinning an initial LOM of 14.3 years, with more than 82% of the mining inventory supported by Ore Reserves.
Commenting on the DFS results, Global Lithium Managing Director, Dr Dianmin Chen said:
“We are incredibly proud to present the highly positive and comprehensive results of our DFS on the Manna Lithium Project, reflecting nine months of dedication from our project team to optimise every aspect of the project to best inform our Final Investment Decision.
“This DFS underscores the potential for Manna to both create shareholder value and contribute to the world’s lithium supply chain through its robust economics, significant long-life potential and Company’s commitment to invest in and develop projects in Western Australia.
“We are particularly pleased with the Manna’s resilience, demonstrated by its strong breakeven price in the current market environment. Global Lithium is now ideally positioned to capitalise on the anticipated recovery in global lithium demand, ensuring we are ready to execute and generate shareholder returns.
“The Board will now focus on advancing key project development activities, including off-take discussions, securing project financing and progressing remaining permitting requirements, as it targets a Final Investment Decision in 2026.”
