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Lithium Royalty Corp. (TSX:LIRC) is excited to announce that Winsome Resources Limited has successfully completed a scoping study for its 100%-owned Adina Lithium Project in Québec, Canada. This study positions the Adina Project as one of the most capital-efficient hard-rock lithium developments in North America and marks a significant milestone for both Winsome and LRC, which holds a 4.0% gross overriding revenue royalty (GOR) on the project.
Ernie Ortiz, President and CEO of LRC, expressed his enthusiasm, stating, “Lithium Royalty Corp. congratulates Winsome Resources on the release of its maiden scoping study on the Adina Project, which cements the project as one of the most competitive, scalable, and straightforward spodumene projects in the Americas. We believe that the progress of the Adina Project through its development to eventual production will uncover substantial value to LRC.”
Key Highlights of the Scoping Study
Low Start-Up Capital Costs
The Adina Project boasts a projected start-up capital cost of approximately US$260 million. This cost efficiency stems from Winsome's ability to utilize existing infrastructure from the nearby Renard mine, for which they have an option to acquire. This strategic move avoids higher construction costs associated with greenfield developments, positioning Adina as an attractive investment in North America’s lithium landscape.
Growth Potential
The scoping study outlines plans to mine 31.2 million tonnes (Mt) of indicated mineral resources, with the potential to expand through an updated resource estimate anticipated in the first half of 2025. The current plan involves annual milling production of 1.7 Mt, with room for increasing throughput to match the 2.2 Mt capacity of the advanced processing facility at Renard.
Competitive Operating Costs
The study estimates a C1 operating cost of US$598 per tonne (FOB) of spodumene concentrate and an All-In Sustaining Cost (AISC) of US$693 per tonne. This efficient cost structure, driven by a simple dense media separation process, underscores the project’s potential for strong cash flow and resilience in fluctuating lithium markets.
Job Creation and Economic Impact
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 of Québec. Winsome has committed to engaging with local stakeholders, including First Nations communities, to ensure long-term benefits for the region.
Positive Implications for LRC
The study highlights the advantages of LRC's strategy in targeting high-grade, low-cost assets. The undiscounted gross royalty payments to LRC could reach approximately US$300 million over the 21-year mine life, reinforcing the financial significance of the Adina Project for the company.
