06:56 AM EDT, 08/22/2024 (MT Newswires) -- Patriot Battery Metals ( PMETF ) reported late Wednesday the results of a preliminary economic assessment (PEA) for its Shaakichiuwaanaan lithium project in Quebec.

It cited potential pre-tax net present value 8% of $4.7 billion (US$3.6 billion) and after-tax NPV 8% of $2.9 billion (US$2.2 billion) with a pre-tax internal rate of return of 38% (after-tax IRR of 34%) at US$1,375 per tonne.

At the targeted Stage 2 production rate of near 800 ktpa spodumene concentrate, it said this would potentially position Patriot as the 4th largest producer globally.

"Although studies are still at an early stage the potential outcomes of the PEA for the Shaakichiuwaanaan project highlights the opportunity for Patriot Battery Metals ( PMETF ) to become a global lithium leader and a key supplier of lithium raw materials to the emerging North American and European battery materials supply chain," President and CEO Ken Brinsden said.

He added: "The PEA outlines a staged development pathway for Shaakichiuwaanaan, commencing with an initial 400 ktpa production capacity which is intended to allow us to leverage the key competitive advantages of this world-class deposit to provide lithium raw materials in emerging western markets.

"Importantly, the resources to be mined include a high-grade component in the Nova Zone that creates an opportunity for a potentially resilient project, while also giving us considerable flexibility in terms of how we progress Shaakichiuwaanaan. This flexibility and scalability could allow us to adapt nimbly to evolving market conditions, while continuing to grow the resource base.

"As we consider moving to the Feasibility Study stage, the Project's anticipated low operating costs and expected IRA-compliant high-quality lithium product could make us an ideal partner for downstream players, making this a highly strategic asset in the future lithium landscape. There is also strong inbound interest from strategic partners to support Stage 1 funding, alongside potential access to Government funding mechanisms.

"The Shaakichiuwaanaan Project is potentially well positioned to anchor the North American lithium supply chain, meeting demand for decades to come, in the process targeting significant returns for all our stakeholders while maintaining a strong emphasis on sustainability and limited environmental impact,"

The company's share price rose 1.8% yesterday to $4.66.