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Argentina

Cauchari Project

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Categories

Summary

Mine TypeIn-Situ
Study CompletedPrefeasibility
StagePermitting
Commodities
  • Lithium
Mining Method
  • Brine mining
Mine Life... Lock
SnapshotThe Cauchari Project is a planned lithium brine mining and processing facility that will produce lithium carbonate. Cauchari is currently in planning stage.

With similar chemistry to the nearby Olaroz facility, the Cauchari Project will enable compatible, efficient development and processing between the two sites.

Owners

SourceSource
CompanyInterestOwnership
Rio Tinto plc 100 % Indirect
Cauchari is a lithium brine project that is 100% owned by Rio Tinto.

The Cauchari tenements were initially applied for on behalf of South American Salars (SAS). SAS is a joint venture company with the beneficial owners being Advantage Lithium (AAL) with a 75% interest and La Frontera with a 25% stake. La Frontera and AAL are 100% owned by Rio Tinto.

Deposit type

  • Brine

Summary:

Salar de Cauchari (the salar) is a mixed (mature and immature) style salar, with a halite nucleus in the centre of the salar overlain with up to 50 m of fine grained (clay) sediments. The halite core is interbedded with clayey to silty and sandy layers. The salar is surrounded by relative coarse grained alluvial and fluvial sediments. These fans demarcate the perimeter of the actual salar visible in satellite images and at depth extend towards the centre of the salar where they form the distal facies with an increase in sand and silt content. At depth (between 300 m and 600 m) a deep sand unit has been intercepted in several core holes in the southeast sector of the project area.

Salar de Cauchari is located towards the centre of the Puna Plateau. The Puna is an elevated plateau in northern Argentina which has been subject to uplift along thrust systems inverting earlier extensional faults. The Puna is host to numerous large ignimbrites and stratovolcanoes.

Evaporite minerals (halite, gypsum) occur disseminated within clastic sequences in the salar basins and as discrete evaporite beds. Based on the drilling campaigns carried out in the salar between 2011 and 2018, six major geological units were identified and correlated from the logging of drill cuttings and undisturbed core to a general depth of over 600 m. These units are characterised according to the relative abundance of gravels, sands, silts, clays and evaporites present within each grouping. No drill hole has reached bedrock.

Salar aquifers at Cauchari host lithium-rich brine in the pore space between sediment grains and in primary or secondary fractures. Owing to the depositional environment present at the time the aquifers were formed, these aquifers consist of horizontal to sub-horizontal clastic sediments and evaporites. The package of sedimentary and evaporitic aquifers that host lithium brine beneath the salar surface are collectively referred to as the brine reservoir. Major geologic units were grouped into four hydrogeologic units based on their hydraulic properties, including specific yield and permeability: distal alluvial fans, a clay aquitard, a semiconfined halite unit with interbedded clastics, and a deep sand unit that occurs at depths greater than 300 m bgs.

The salar occurs in a closed (endorheic) basin without external drainage, in a dry desert region where evaporation rates exceed stream and groundwater recharge rates, preventing lakes from reaching the size necessary to form outlet streams or rivers. Evaporative concentration of surface and shallow groundwater over time in these basins leads to residual concentration of dissolved minerals enriched in the types of constituents present at Cauchari: sodium, potassium, chloride, sulphate, carbonate species, boron and lithium. The brines at Cauchari are nearly saturated in sodium chloride with an average concentration of total dissolved solids of 290 g/l. The average density and lithium grade is approximately 1.19 g/cm3 and 500 mg/l, respectively.

Water enters the salar from both streams and groundwater discharges from basin-bounding alluvial fans (and potentially from adjacent rock formations). Rio Tocomar entering Cauchari from the south and Rio Archibarca from the west are the only two perennial surface water features in the project area. Other surface water flows are intermittent and occur primarily during summer months following intense rainfall events.

The salar is an endorheic basin, resulting in evaporation and plant transpiration being the primary processes for water outflow, followed by groundwater pumping for brine processing at neighbouring operations.

Dimensions:
The Mineral Resource model covers 117.7 km2. The top coincides with the brine level in the salar, measured by monitoring wells and geophysical TEM and SEV tests.

The lateral boundaries are defined based on the Cauchari tenements and by the brine / groundwater interface along the eastern and western limits of the salar as based on the physical TEM and SEV drill holes.

The base of the model varies across its domain (nominally 400 m) and coincides with a surface created from the bottom of the drill holes, which occur above the sediment-bedrock contact that forms the conceptual base of the deposit as interpreted from geophysical surveys.

Reserves

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Mining Methods

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Heavy Mobile Equipment

Fleet data has not been reported.

Comminution

Crushers and Mills

Milling equipment has not been reported.

Processing

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Commodity Production

CommodityUnitsAvg. AnnualLOM
Lithium t 25,000 *740,072 *
All production numbers are expressed as carbonate. * According to 2023 study.

Operational metrics

Metrics
Annual production capacity  ....  Subscribe
Annual brine extraction  ....  Subscribe
Brine extraction, LOM  ....  Subscribe
* According to 2023 study.

Production Costs

CommodityUnitsAverage
Site cash costs (produced) Li2CO3 USD  ....  Subscribe
Cash costs Li2CO3 USD  ....  Subscribe
Assumed price Li2CO3 USD  ....  Subscribe
* According to 2023 study / presentation.

Project Costs

MetricsUnitsLOM Total
Initial CapEx $M USD  ......  Subscribe
Sustaining CapEx $M USD  ......  Subscribe
Closure costs $M USD  ......  Subscribe
Total CapEx $M USD  ......  Subscribe
G&A costs $M USD 441
Total OpEx $M USD  ......  Subscribe
Total Taxes $M USD  ......  Subscribe
Gross revenue (LOM) $M USD  ......  Subscribe
EBITDA (LOM) $M USD  ......  Subscribe
Pre-tax Cash Flow (LOM) $M USD  ......  Subscribe
After-tax Cash Flow (LOM) $M USD  ......  Subscribe
Pre-tax NPV @ 10% $M USD  ......  Subscribe
After-tax NPV @ 10% $M USD  ......  Subscribe
After-tax NPV @ 8% $M USD  ......  Subscribe
Pre-tax IRR, %  ......  Subscribe
After-tax IRR, %  ......  Subscribe
After-tax payback period, years  ......  Subscribe

Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Nov 15, 2023
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Workforce

Total WorkforceYear
...... Subscription required 2023

Aerial view:

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