Plateau Energy Metals Inc. (“
Plateau” or the
“
Company”) (TSX-V: PLU | OTCQB: PLUUF) is pleased
to provide an update on recent initiatives and
activities.
Highlights:
- Falchani Lithium Chemical Project desktop work for
project optimization programs in progress:
- Lithium chemical product flexibility to evaluate lithium
hydroxide and lithium sulphate from lithium sulphate solution
- Lithium process flowsheet optimization program design
- By-product phase 2 program design
- Macusani Uranium Project desktop work for project
optimization programs in progress:
- Pre-concentration work program design as follow on to
favourable Cameco results
- 2 tonne uranium sampling program from 5 different deposit areas
for future test work completed
- Community support initiatives in Peru ongoing to help
ensure the health, safety and wellbeing of our host
communities
"Our team has been making concerted efforts to
support our host communities in these challenging times" stated
Alex Holmes, CEO. "Peru has been hit extremely hard by the global
pandemic caused by Covid-19 and a focus of ours is in helping
ensure our host communities can be safe and responsible in handling
the pandemic."
"To our shareholders, as we navigate these
times, we want to remind you of the tremendous value opportunity we
have with two strategically important critical minerals projects in
the green energy/technology industry. We continue to see investment
downstream of raw materials in lithium-ion batteries and electric
vehicles, and in nuclear energy as a stable clean energy source. At
the same time, we are also seeing future supply constraints
surfacing in both battery quality lithium chemicals in a
fast-growing demand market and in uranium for fuel for nuclear
energy plants. The market dynamics, medium and long-term, are
unfolding in our favour and we remain focused on de-risking both
projects as they are needed in a green recovery world."
Falchani Lithium Project
The Company is currently concentrating on taking
strategic steps and engaging in discussions with various parties to
advance the technical strengths and identify areas to increase the
underlying asset value of the Falchani Lithium Project
(“Falchani”). These steps are in preparation for future work
programs while balancing capital constraints and the current Peru
environment. Some of the work being considered:
- Phase II work program in planning, following on from the
results of preliminary metallurgical work in April 2020 on
potential by-products from caesium, rubidium and potassium for
sulphate of potash (“SOP”).
-
Complete SOP (fertilizer) market study for South America, and
specifically Peru, as previous metallurgical test work results
demonstrated SOP (K2SO4) is a potential by-product of Falchani (see
Flow Sheet1 link).
-
Lithium flowsheet optimization focused on areas where it may be
possible to reduce reagent consumables and capital costs.
-
Lithium chemical product flexibility to evaluate lithium hydroxide
and lithium sulphate from lithium sulphate solution (Falchani leach
solution). Evolving battery technology dictates the need for
projects to evaluate flexibility in battery quality lithium
chemicals to be a strategic player in the battery supply
chain.
Falchani is a scalable, long mine life battery
quality lithium chemical project with an after-tax NPV(8%) $1.55
billion at $12,000/t Li2CO3; after-tax IRR of 19.7%1. The
development plan at Falchani incorporates multiple responsible and
green mining initiatives with further opportunities for revenue
optimization and technological advancements. We believe this will
position Plateau to capitalize on a return to improved lithium
market sentiment and pricing, without impacting the development
path significantly.
Macusani Uranium Project
The Macusani Uranium Project (“Macusani”) is a
low-capex, large-scale development stage uranium project containing
significant measured, indicated and inferred uranium resources.
Located approximately 25 kilometres away from Falchani with an
NPV(8%) of $603.1 million, IRR of 40.6% and a 1.8-year payback (all
after-tax @ $50/lb U3O8 selling price)2.
- An optimization work program evaluating pre-concentration
amenability has been prepared and various options are being
considered. This work program would be a follow up to favourable
historical results yielded by Cameco Corporation in 2013 which
demonstrated that approximately 85% of the uranium is concentrated
in fine fractions representing only 50% of the mass of the uranium
mineralized rhyolitic material. Pre-concentration potential using
conventional scrubbing technology could impact the volume and head
grade of mineralized material in the PEA mine plan, positively
impacting operating and capital cost estimates, and result in a
re-evaluation of resources outside the PEA mine plan. Samples were
collected at site in July for this future work program. The timing
of initiating the work program and results of the work program will
be dependent on capital allocation later in 2020. The work programs
may lead to an optimized development plan, execution of which will
be dependent on the Peru government implementing the New Uranium
Regulations (defined below) and market conditions for uranium
improving.
-
Ongoing work with the government of Peru for uranium transport and
export regulations in coordination with the International Atomic
Energy Agency and the Peruvian Institute of Nuclear Energy (the
“New Uranium Regulations”). In early 2020 the Ministry of Energy
and Mines (“MINEM”) announced that they were targeting H2 2020 to
have this new framework submitted for approval, the Company expects
that in the context of work restrictions due to COVID-19, along
with personnel changes at MINEM, this could be delayed to H1 2021.
However, a recent public announcement by the Minister of Energy and
Mines continues to guide to the end of 2020.
-
A targeted exploration drill program is being planned to test high
priority areas between existing deposits, something not previously
possible due to the fractured historical ownership. Previous EIA
work continues albeit at a slower pace. The exploration program is
contingent on securing uranium exploration capital and the New
Uranium Regulations being implemented.
An updated PEA is under consideration, pending
outcome of optimization work programs and New Uranium Regulations.
Positive optimization work programs may result in a modified mining
and processing plan.
Health and Safety
The Ministries of Health and Energy and Mines
(the “Ministries”) in cooperation with regional governmental
authorities permitted the restart of larger scale mining activities
mid-May. All mining companies are required to submit restart safety
protocols for approval before being given the go ahead to resume
operations. Plateau received approval from the Ministries to
restart activities on July 1, 2020. The Company’s decision to
resume full scale work at site will be conditional on the ability
to ensure the ongoing safety of our employees and the local
communities and to access to supplies and equipment to maintain
health and safety at site.
Local Communities
Plateau has been working to support our
communities through the donations of hygiene and medical supplies
such as sanitizer, digital thermometers and rapid response testing
kits along with the delivery of parcels of essential
food.
At the end of May, the Company facilitated the
delivery of supplies and equipment to partner with the Women
Association of Isivilla to commence the production of reusable
non-medical masks for distribution to the surrounding communities.
The mask initiative is ongoing, and to-date over 5,000 reusable
face masks have been assembled and distributed freely throughout
the communities.
In mid-June, the Company was able to arrange for
the delivery of essential food parcels or “canastas” to the local
communities. Over three days the team in Peru distributed
canastas to the inhabitants in five villages. The Company continues
to engage and work with our host communities to develop ways to
support and assist them where possible during this global
pandemic.
Peru Government and
Regulatory
On September 11th, the Peruvian Congress
approved a motion to commence impeachment proceedings against
President Vizcarra following allegations which have yet to be
substantiated. The date for the vote is expected to be held
September 18th.
Recently, three projects of proposed legislation
with special emphasis on lithium were introduced in the Peruvian
Congress for debate and approval. The projects vary considerably in
their approach, ranging from tremendous support from the State and
its institutions and assistance for the private sector to develop
the lithium market in Peru, to strict controls imposed by the State
at all levels. As far as can be ascertained, all the proposed
legislation highlights the strategic importance of lithium to the
country, prioritizing the development of the sector and does not
seem to preclude private ownership or development.
“The submission of three different lithium
legislation proposals to Congress within a week demonstrates the
interest that our Falchani discovery has generated in Peru,” Alex
Holmes, CEO of the Company stated. “Lithium chemical processing and
production requires certain technologies and a very specialized
skill set not currently available in-country. As we advance
Falchani, we are seeking to support the development of the
prerequisite skillsets in-country, through education, training, and
partnerships, to make lithium chemical development a successful
industry for the country.”
Peru has a long history of encouraging and
supporting foreign private investment in general and in the mining
sector in particular, which is and has always been paramount to the
economic stability and ongoing development of the country.
Considering the very tumultuous political period that Peru as a
country passes through at present, the Company believes that it is
possible more projects may be submitted to Congress. As a result,
it will take a while before any decision may be adopted with
respect to the lithium industry. The Company expects that any such
decision will be one that continues to encourage investment and
ensure sustainable and responsible development in the country.
In Peru lithium is considered a “non-metal” and does not
currently require any specific regulatory/permitting framework for
exploration, exploitation and processing.
On August 4th Peruvian Congress rejected a vote
of confidence for President Vizcarra’s cabinet chief, forcing the
resignation of 19 cabinet ministers, including Rafael Belaunde, the
Minister of Energy and Mines who was appointed on July 15th. On
August 11th Luis Miguel Inchaustegui, previously Vice Minister of
the same Ministry, was appointed as the new Minister of Energy and
Mines. On August 13th Vice Minister Augusto Cauti tendered his
resignation and was replaced by economist Jaime Gálvez Delgado, who
until last year served as general director of Mining Promotion and
Sustainability of MINEM. The Company has worked with both parties
in their prior roles at the Ministry and looks forward to working
with them as the projects continue to advance.
In July, MINEM adopted new exploration
regulations which will in effect streamline early exploration
(pre-drilling) timelines in advancing a project to drill ready
status.
On July 24th Susana Vilca, previously the
Minister of Energy and Mines, was appointed as the new Institute of
Geology Mining and Metallurgy (“INGEMMET”) President.
Concessions: Judicial and Administrative
Processes
In August 2020, the judicial process for the
concessions officially resumed, however COVID-19 work stoppages and
restrictions in Peru have added significant delays to court
procedures and the Company has not been provided with a timeline
for an expected decision for the Precautionary Measure on the
remaining 15 concessions. Meetings with MINEM and INGEMMET have
continued to advance the administrative process, but recent
personnel changes within these institutions will likely lead to
some delays with talks restarting with new Ministers within MINEM.
Updates will be provided as and when they become available.
Qualified Persons
Mr. Ted O’Connor, P.Geo., a Director and
Technical Advisor to Plateau, is the Company’s designated Qualified
Person as defined by NI 43-101, has reviewed and approved the
scientific and technical information contained in this news
release.
About Plateau Energy
MetalsPlateau Energy Metals Inc., a Canadian exploration
and development company, is enabling the new energy paradigm
through exploring and developing its Falchani lithium project and
Macusani uranium project in southeastern Peru, both of which are
situated near significant infrastructure.
For further information, please
contact: |
Plateau Energy Metals Inc. |
|
|
|
Alex Holmes, CEO & Director |
|
Facebook: |
www.facebook.com/pluenergy/ |
+1-416-628-9600 |
|
Twitter: |
www.twitter.com/pluenergy/ |
IR@PlateauEnergyMetals.com |
|
Website: |
www.PlateauEnergyMetals.com |
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward Looking StatementsThis
news release contains certain forward-looking information and
forward-looking statements (collectively “forward-looking
statements”) within the meaning of applicable securities
legislation. All statements, other than statements of historical
fact, are forward-looking statements. Forward-looking
statements in this news release include, but are not limited to,
statements regarding project desktop work and optimization programs
under consideration, a potential exploration drill program at
Macusani, the anticipated New Uranium Regulations discussed herein,
proposed lithium legislation and the potential adoption thereof,
the judicial process resuming in Peru, the status of the
“Precautionary Measures” filed by the Company’s subsidiary
Macusani, the outcome of the administrative process, the judicial
process, and any and all future remedies pursued by Plateau and its
subsidiary Macusani to resolve the title for 32 of its concessions,
and any statements regarding the Company’s business plans,
expectations and objectives.
Forward-looking statements are frequently
identified by such words as "may", "will", "plan", "expect",
"anticipate", "estimate", "intend", “indicate”, “scheduled”,
“target”, “goal”, “potential”, “subject”, “efforts”, “option” and
similar words, or the negative connotations thereof, referring to
future events and results. Forward-looking statements are based on
the current opinions and expectations of management are not, and
cannot be, a guarantee of future results or events. Although the
Company believes that the current opinions and expectations
reflected in such forward-looking statements are reasonable based
on information available at the time, undue reliance should not be
placed on forward-looking statements since the Company can provide
no assurance that such opinions and expectations will prove to be
correct. All forward-looking statements are inherently uncertain
and subject to a variety of assumptions, risks and uncertainties,
including risks and uncertainties relating to the COVID-19 pandemic
and the extent and manner to which measures taken by governments
and their agencies, the Company or others to attempt to reduce the
spread of COVID-19 could affect the Company, which could have a
material adverse impact on many aspects of the Company's business
including but not limited to: the Company’s ability to access its
properties for indeterminate amounts of time, the health of its
employees or consultants resulting in delays or diminished
capacity, social or political instability in Peru which in turn
could impact the Company’s ability to maintain the continuity of
its business operating requirements, may result in the reduced
availability or failures of various local administration and
critical infrastructure, reduced demand for the Company’s potential
products, availability of materials, global travel restrictions,
and the availability of insurance and the associated costs; risks
related to the certainty of title to our properties, including the
status of the “Precautionary Measures” filed by the Company’s
subsidiary Macusani, the outcome of the administrative process, the
judicial process, and any and all future remedies pursued by
Plateau and its subsidiary Macusani to resolve the title for 32 of
its concessions; the anticipated New Uranium Regulations discussed
herein; the proposed lithium legislation in Congress and the
potential adoption thereof, the ongoing ability to work
cooperatively with stakeholders, including but not limited to local
communities and all levels of government; the potential for delays
in exploration or development activities due to the COVID-19
pandemic; the interpretation of drill results, the geology, grade
and continuity of mineral deposits; the possibility that any future
exploration, development or mining results will not be consistent
with our expectations; mining and development risks, including
risks related to accidents, equipment breakdowns, labour disputes
(including work stoppages, strikes and loss of personnel) or
other unanticipated difficulties with or interruptions in
exploration and development; risks related to commodity price and
foreign exchange rate fluctuations; risks related to foreign
operations; the cyclical nature of the industry in which we
operate; risks related to failure to obtain adequate financing on a
timely basis and on acceptable terms or delays in obtaining
governmental approvals; risks related to environmental regulation
and liability; political and regulatory risks associated with
mining and exploration; risks related to the uncertain global
economic environment and the effects upon the global market
generally, and due to the COVID-19 pandemic measures taken to
reduce the spread of COVID-19, any of which could continue to
negatively affect global financial markets, including the trading
price of the Company's shares and could negatively affect the
Company's ability to raise capital and may also result in
additional and unknown risks or liabilities to the Company. Other
risks and uncertainties related to our prospects, properties and
business strategy are identified in the “Risks and Uncertainties”
section of Plateau’s Management’s Discussion and Analysis filed on
January 20, 2020 and in recent securities filings available at
www.sedar.com. Actual events or results may differ materially from
those projected in the forward-looking statements and Plateau
cautions against placing undue reliance thereon. Except as required
by applicable securities legislation, neither Plateau nor its
management assume any obligation to revise or update these
forward-looking statements.
1 Preliminary economic assessment effective Feb.
04, 2020 prepared in accordance with NI 43-101, filed on SEDAR
titled the “Falchani Lithium Project NI 43-101 Technical Report –
Preliminary Economic Assessment” prepared by John Joseph Riordan,
David Thompson, Valentine Cotzee of DRA Pacific and Mr. Stewart
Nupen of The Mineral Corporation.
2 "Macusani Project, Macusani, Peru, NI 43-101
Report – Preliminary Economic Assessment” prepared by Mr. Michael
Short and Mr. Thomas Apelt, of GBM Minerals Engineering Consultants
Limited; Mr. David Young, of The Mineral Corporation; and Mr. Mark
Mounde, of Wardell Armstrong International Limited dated January
12, 2016.
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