Neo Lithium's feasibility study for Tres Quebradas (Q3) lithium brine project in Argentina has an estimated US$1.13 billion net present value at an 8% discount rate.

The internal rate of return is 39.5%, with a payback period of 2 years and three months from the start of production. Neo Lithium estimates the mine life to be 50 years, with an annual production of 20,000 tonnes of lithium carbonate equivalent for the first 20 years of the mine, using 31% of the resource.

Capital expenditures are US$370.5 million, with deferred and sustaining capital costs of US$143.5 million. Closure costs are expected to be US$12.8 million over the 50-year period.

For the first 14 years of the mine life, four new and seven existing wells will each produce between 12.5 litres/second and 42.2 L/s. From year 15 on, Neo Lithium will add two new wells and one existing well to the process, which will produce between 13 L/s and 84.5 L/s.

The brine will be sent to a conventional evaporation pond, followed by concentrated brine purification and precipitation of lithium carbonate, which will minimise water and energy consumption.

It will then be sent to the Fiambala purification plant, which will use a five-step process to produce LCE.

Neo Lithium was acquired by Zijin Mining in early October.