Pilgangoora Lithium-Tantalum Project

Overview

Pilbara Minerals’ 100%-owned Pilgangoora Lithium-Tantalum Project, located 120km from Port Hedland in Western Australia’s resource-rich Pilbara region, is one of the biggest new lithium ore (spodumene) deposits in the world, with a globally significant hard rock spodumene resource.

The Project is readily accessible by road, with relatively simple access to existing infrastructure (including downstream port facilities) at the existing port of Port Hedland.

Resources & Exploration

Substantial increases in the Global Resource at Pilgangoora have reinforced its status as Australia's premier lithium development Project. The latest Global Resource, as published in January 2017 incorporates all the results of a successful drilling program completed from February 2016 to December 2016, comprise a Global Measured, Indicated and Inferred Resource of 156.3 million tonnes grading 1.25% Li2O (lithia) and 138ppm Ta2O5 (tantalite) containing 1.57 million tonnes of lithium oxide and 39 million pounds of Ta2O5.

Click here to view the current Pilgangoora Mineral Resource Estimate.

Future drilling focusing on a number of key zones of mineralisation (unclassified resource inventory) at depth below the Central pegmatites and along strike from the currently defined resource is expected to result in further significant increases in the overall resource inventory well above the current 156.3 million tonnes.

Reserves

The most recent Ore Reserve estimate, published in June 2017, comprises a Proved and Probable Ore Reserve of 80.3 million tonnes grading 1.27% Li2O (lithia) and 123ppm Ta2O5 (tantalite) and 1.08% Fe2O3.

Click here to view the current Pilgangoora Ore Reserve Estimate.

Development & Off-take

A Septemper 2016 Definitive Feasibility Study confirmed a robust, high margin project with a post-tax Net Present Value of A$709 million and a strong Internal Rate of Return of 38.1%.

Based on the proposed 2 million tonne per annum stand-alone mining and processing operation, the DFS forecast current life-of-mine revenue of A$9.23 billion and Life-Of-Mine Project EBITDA of A$4.22 billion over an estimated 36-year mine life.

Pilbara commenced construction on the Project in January 2017, and is currently targeting commissioning from March 2018.

Over 100% of the projected lithium oxide production from Pilgangoora is already subject to either binding off-take agreements or Memorandums of Understanding with major off-take partners in China, Japan, the Americas and Europe.

In July 2016, Pilbara secured a binding off-take agreement with General Lithium, a leading Chinese supplier of lithium products and materials to the fast-growing lithium-battery industry in China. This off-take agreement is for the supply of 140,000tpa of 6% chemical-grade spodumene concentrate from Q1 2018 for an initial 6-year period, with the option to extend for a further 4 years. This represents over 40% of Pilgangoora’s anticipated initial annual output of ~330,000tpa of concentrate (inclusive of technical grade spodumene), from the Phase 1 project.

In May 2017, Pilbara also secured a long-term binding off-take agreement with Ganfeng Lithium, one of China's largest integrated lithium producers, with a total capacity of around 30,000 tonnes per annum of LCE (lithium carbon equivalent). Key aspects of the agreement include the supply of 160,000 tonnes per annum of chemical-grade spodumene over an initial term of 10-years, with two 5-year options to extend up to a further 10-years.

The ability to manufacture high-value battery-grade lithium products through downstream processing has the potential to deliver significant additional value for Pilbara in the years ahead, with global demand for lithium-ion batteries expected to experience unprecedented growth over the coming decades.

The Board of Pilbara believes this is an important strategic objective to facilitate the Company’s further growth.

For the latest updates on development activities at Pilgangoora, please visit our ASX Announcements page.

History

Mining of four small hard rock tantalum prospects has been undertaken in the area around Pilgangoora, with recorded production taking place from 1947 to 1978. Concentrate production at Pilgangoora up to 1977 is recorded at 33.31 tonnes of tantalite and 13.1 tonnes of tantalite-columbite (Featherstone 2004).

Pilgan Mining continued large-scale mining operations between 1978 and 1982, and then continued by the Pilgangoora Mining Venture from 1992 to 1996. These operations produced approximately 140 tonnes of tantalite concentrates, from an estimated 800,000 bank cubic metres (UBCMU) of screened alluvial and eluvial material.

Since the acquisition of the Pilgangoora Project from Global Advanced Metals in May 2014, Pilbara Minerals have drilled well over 100,000 metres over the prospective 10km strike length of the Project area.

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HQ: Level 2, 88 Colin Street, West Perth WA 6005
Postal Address: P.O. Box 884, West Perth WA 6872
Phone: +61 8 6266 6266 | Fax: +61 8 6266 6288

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