Perth-based explorer Orocobre's shares have jumped after a definitive feasibility study for its flagship $US221 million Salar de Olaroz lithium-potash project in Argentina revealed low costs of production.
The study flagged a 16,400 tonne per annum production rate for lithium carbonate from the Olaroz project, and 10,000 tonne per annum production rate for potash by products.
Orocobre shares were up 21 cents, or 9.29 per cent, at $2.47.
The study estimated the operating costs of Olaroz to come in at $US1,512 per tonne for battery grade lithium carbonate.
"This cost estimate is competitive with existing brine producers and materially less than those reported by hard rock lithium minerals projects," Orocobre said.
The company said it would now work with Japanese partner Toyoto Tsusho Corporation to finalise the joint venture agreement and financing to progess the project to production.
Managing director Richard Seville said the feasibility study highlighted the strong economic fundamentals of Olaroz.
The DFS highlights the long project life and low operating cost of the project making it clear that Olaroz is poised to be the world's next low cost, high grade lithium carbonate project."
"In accordance with our typical approach, we placed considerable emphasis on quality control during the DFS process to ensure a high quality resource estimate and a sound basis for development and operations."
"We hope this Feasibility Study sets a high standard for the industry, as it is the first such salar study released under National Instrument 43-101 standards."
"We will now work with our valued partner, Toyota Tsusho to complete the Joint Venture Agreement, finalise the debt component of the project and work towards the earliest possible commercial production."
"We also look forward to working closely with the provincial government of Jujuy to secure final project approval."
