All,

It has been a bit quiet on this message board lately as we await news of potential partnerships, permit approvals, and release of the DFS. I thought I would take this time share topics I have been thinking about in attempt to stimulate discussion on any one subject as well as details I am looking forward to learning more about in the DFS that will contribute to long-term shareholder value.

UPCOMING NEWS

Timing of potential and future news:

(12m:48s to 13m:30s) - https://vimeo.com/491536474.

Potential Partnerships

(3m:15s) - https://www.bnnbloomberg.ca/video/lithium-americas-ceo-open-to-partnerships-for-thacker-pass-mine~2126396

SCALABILITY

(3m:50s) https://www.bnnbloomberg.ca/video/lithium-americas-ceo-open-to-partnerships-for-thacker-pass-mine~2126396. Note: Thacker Pass is the largest resource in North America (i.e., USA, Canada, and Mexico).

(16m:32s) Expansion to 100,000 Mt https://vimeo.com/491536474. Every CEO of a lithium development company says something similar. The demand for lithium will support expansion, but not every project will be profitable throughout the lithium price cycle.

Is Northwest area “New Hero”? https://vrify.com/embed/projects/215/sites/935

From the PFS: “The project is to be constructed in two phases. Phase 1 will have a production of 30,000 tonnes per annum (tpa) of lithium carbonate, and Phase 2 will expand the production rate to 60,000 tpa of lithium carbonate. The design of the two-phase approach was done in a combined foot print to reduce the overall project layout and improve operational costs.” …  “Additional exploration, aimed to increase the resource size northwest of the pit area and in the southwest basin continues in 2018 (the results of this drilling program were not available at the time of, nor are they included in, this study).“

ORE UPGRADING

Hydrocyclone technology explained by CEO Jonathan Evans in December 2020 

(17m:49s) – https://vimeo.com/491536474

How hydrocyclones work: https://www.youtube.com/watch?v=Q62bHiDKjxQ

The lithium ore will be upgraded up to 10,000 ppm (i.e., 1% Lithium). How does this compare to concentrated spodumene? Spodumene is concentrated to around 6% Lithium oxide (Li2O). This equates to ~2.8% Lithium or 28,000 ppm. I will be curious to see how ore upgrading (not included in the PFS) affects the operating cost, sulfuric acid and water consumption, lithium concentration in the leachate, overall lithium recovery, and final product purity. Is the lithium refinement process set in stone, or could ore upgrading include flotation which is performed to concentrate spodumene?

Video describing flotation in spodumene concentration https://www.youtube.com/watch?v=Ldmw6njETRg&t=83s

Generic video describing how flotation works

https://www.youtube.com/watch?v=8cc6u6nmhKg&t=120s

Could it be possible to upgrade/concentrate lithium clay so that it could be sold similar to spodumene concentrate? Perhaps to Tesla?

Tesla lithium refinery in Texas - https://www.benchmarkminerals.com/membership/exclusive-tesla-becomes-first-automaker-to-enter-lithium-supply-chain-reshapes-foundations-of-china-dominated-spodumene-2/  

RAIL – What are the risks associated with rail line planned for Phase 2. What will the impact on the operating cost be if the rail line is not approved? From the PFS: Phase 2 of the project will require railcar quantities of raw materials to be delivered to the plant site directly. A rail spur has been designed to connect the plant with the Union Pacific mainline located approximately 93 km to the south. The plant layout has been designed to accommodate rail loading and unloading. To minimize interruption to production, construction of the rail facilities will be timed to allow final interconnection to occur during a planned plant turnaround. All raw materials except for limestone are planned to be brought to site by rail during Phase 2, and the sulfuric acid produced at the plant can be transported by railcar to customers.

LITHIUM PRICE FORECAST

Given the recent spike in lithium pricing, will the DFS include an upward revision in the expected near-term price of LCE above $12,000 USD? From the PFS: “Global Lithium LLC, a recognized leader in lithium markets, was engaged to conduct a market study and price projection for Li2CO3. Global Lithium provided price projections for the global market through to 2025. They project sustained firm lithium carbonate pricing over the next five to seven years and expect that demand will grow a minimum of 300% between 2017 and 2025. Global Lithium suggests using a conservative low-price estimate of US$12,000/tonne for project economics. That will provide a margin of safety over what is believed to be the most likely price scenario going forward.“

CREDITS AND BY-PRODUCTS

What will the revised operating costs per tonne LCE be after credits and sale of by-products? From the PFS:($2,570/t Li2CO3 ($4,088/t before by-product credits)). Credits include sale of sulfuric acid and electricity generated from sulfuric acid production. Will the by-products MgSO4, Na2SO4, and K2SO4 also be sold and for what price? 

Magnesium sulfate (1,196,850 tonnes per annum phase 2)

Sodium/potassium sulfate (239,286 tonnes per annum phase 2)

CARBON FOOTPRINT

Use of limestone for sulfuric acid leachate pH neutralization and generation of quicklime releases a lot of CO2 into the atmosphere. Will this attract criticism? 

Limestone cycle. https://www.youtube.com/watch?v=9LDG9cnGlDo

How quick lime is made https://www.youtube.com/watch?v=VqSwHLpOd88=

WATER

Magnesium Sulfate - I expect the form of magnesium sulfate produced to be a heptahydrate (i.e., every molecule of magnesium sulfate has 7 water molecules attached to it). This equates to 584,440 tonnes of water.CEO Jonathan Evans said water usage would be roughly equivalent to 4 alfalfa pivots. Alfalfa is a high water intensity crop that is reported to require up to 46 inches of water per growing season. Assuming a pivot is 500m long, this equates to 917,700 tonnes of water per pivot. Thus, magnesium sulfate alone could use at a minimum 17% of planned water. If the pivot referenced is instead 400m, magnesium sulfate would use 26%.

Dust control – Will Thacker pass use a water substitute for dust control? If not, how much water will this use? https://www.youtube.com/watch?v=4dC_cZfNbtk

Dust control may also be required for tailings - https://www.youtube.com/watch?v=QkhLdVvOhmI

AXP