ROK Resources Announces Preliminary Economic Assessment Results for the Viewfield Lithium Brine Project

ACCESSWIRE · ROK Resources Inc.
ROK Resources Inc.
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REGINA, SK / ACCESSWIRE / January 9, 2024 / ROK Resources Inc. ("ROK" or the "Company") (TSXV:ROK)(TSXV:ROK.WT)(OTCQB:ROKRF), as a twenty-five (25%) percent shareholder and manager of operations of Hub City Lithium Corp. ("Hub City Lithium" or "HCL"), is pleased to announce the highlights of Hub City Lithium's Preliminary Economic Assessment (the "PEA") on the Viewfield Lithium Brine Project, Saskatchewan. The PEA outlines the estimated production of battery-quality lithium carbonate equivalent ("lithium carbonate" or "LCE") over a 23-year period, which represents an estimated pre-tax internal rate of return ("IRR") of 55% and a pre-tax net present value ("NPV") of $1.49 billion USD, at an 8% discount rate.

Preliminary Economic Assessment Highlights

  • Pre-tax $1.49 billion USD NPV, at an 8% discount rate;

  • Pre-tax IRR of 55% which represents a payout duration of 2.1 years;

  • Total capital expenditures ("CAPEX") of $571 million USD inclusive of both direct and indirect capital costs, including $52 million USD in contingency;

  • All-in operating costs ("OPEX") of $3,319 USD per tonne LCE, $40 million USD annually, including all direct and indirect costs;

  • 23-year project-life producing a total of 282,090 tonnes of battery-grade lithium carbonate, an average of 12,175 tonnes LCE per year;

  • Weighted average lithium concentrations of 128 mg/L from 7 target zones over the project life (range of 84 mg/L to 259 mg/L); and

  • PEA encompasses approximately 11,000 net hectares, or 14% of Hub City Lithium's lands in Southern Saskatchewan.

Preliminary Economic Assessment Results

Values

Production (LCE)

12,175 tonnes/year

Project Life

23.2 years

Total Capital Cost

$571 million USD

Average Annual Operating Costs

$40 million USD

Average Selling Price (LCE)

$20,000 USD/tonne

Pre-Tax Net Present Value (8% discount)

$1.493 billion USD

After-Tax Net Present Value (8% discount)

$1.066 billion USD

Pre-Tax Net Present Value (10% discount)

$1.213 billion USD

After-Tax Net Present Value (10% discount)

$0.859 billion USD

Cash Operating Costs

$3,319 USD/tonne

Pre-Tax Internal Rate of Return

55%

After-Tax Internal Rate of Return

45%

Payback Period (Pre-Tax)

2.1 years

Payback Period (After-Tax)

2.4 years

Profitability Index (PI8% Before-Tax)

3.2

Profitability Index (PI8% After-Tax)

2.3

"We are very encouraged by the results of a best-in-class Preliminary Economic Assessment that highlights Hub City Lithium's resource quality" commented Cameron Taylor, CEO & Chairman of ROK. "We are very excited to be moving forward with the project development work in 2024, as we progress on the path to a commercial pilot and continue to advance efforts to optimize value creation for ROK and its shareholders."

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