Lithium Royalty is pleased to announce that Winsome Resources Limited (“Winsome”) has completed a scoping study for its 100%-owned Adina Lithium Project in Québec, Canada. The study positions the Adina Project as one of the most capital-efficient hard-rock lithium projects in North America. This milestone is significant for both Winsome and LRC, which holds a 4.0% gross overriding revenue royalty (GOR) on the Adina Project.
Ernie Ortiz, President and CEO of LRC, stated, “We congratulate Winsome Resources on the successful completion of the scoping study, which confirms the Adina Project as one of the most competitive and scalable spodumene projects in the Americas. We are confident that the project’s progression towards production will unlock considerable value for LRC.”
Key Highlights from the Scoping Study:
- Low Start-Up Capital Cost of US$260 Million
The Adina Project’s estimated start-up cost is around US$260 million, largely due to Winsome’s option to repurpose the existing infrastructure at the nearby Renard mine. This approach eliminates the need for higher construction costs typically associated with greenfield developments. The capital efficiency positions Adina as one of the most promising lithium projects in North America. - Potential for Growth
The study considers mining 31.2 Mt of indicated resources from a total of 61.4 Mt, and 4.6 Mt of inferred resources from a total of 16.5 Mt. Winsome plans to update its mineral resource estimate in 2025, which could further enhance the project’s potential. The study assumes an annual milled production of 1.7 Mt, which is below the Renard facility’s nameplate capacity of 2.2 Mt per year, offering room for growth in throughput and mine life. - Competitive Operating Costs
Winsome estimates a C1 operating cost of US$598 per tonne (FOB) for spodumene concentrate, with an all-in sustaining cost (AISC) of US$693 per tonne over the 17-year production period. By employing a dense media separation process, Winsome expects to produce a high-quality, coarse concentrate while maintaining low costs. These figures suggest the project has the potential for strong cash flow, even in volatile lithium markets. - Economic Impact in Québec
The Adina Project is expected to create approximately 600 jobs during its operational phase, contributing to economic development in the Eeyou Istchee James Bay region and the wider Province of Québec. Winsome is committed to collaborating with local stakeholders, including First Nations communities, to ensure the project delivers long-term benefits to the region. - Positive Implications for LRC
The scoping study highlights the benefits of LRC’s strategy of investing in high-grade, low-cost, technically straightforward projects. Over the 21-year mine life, LRC is projected to receive approximately US$300 million in undiscounted gross royalty payments, based on Winsome’s royalty calculations in the scoping study.
Key Life-of-Mine Statistics from the Winsome Scoping Study:
| Metric | Value |
|---|---|
| Renard Plant – Targeted Throughput | 1.7 Mtpa |
| Renard Plant – Nameplate Capacity | 2.2 Mtpa |
| Indicated Mineral Resource | 61.4 Mt |
| Inferred Mineral Resource | 16.5 Mt |
| Mine Life | 21 years |
| Average Annual Concentrate Production | 256 ktpa |
| LRC Projected GOR Undiscounted Cashflow | US$296 million |
This scoping study marks a significant advancement for both Winsome and LRC, demonstrating the potential of the Adina Lithium Project to be a leading lithium producer in North America.
