Impact: Very Positive
Sigma Lithium provided an updated NI 43-101 resource update for its Phase 3 production scenario from its 100%-owned Grota do Cirilo hard rock Li project in Brazil. The addition of 26.8 Mt of high grade Li2O brings total resources to 73.6Mt at 1.43% Li2O M&I, with inferred resources of 12.1Mt at 1.45% Li2O, for a total resource base of 85.7Mt M&I+I. Proven & probable reserves remain 33.6Mt at 1.43% Li2O as previously reported. Overall, we view this update very positively as it sets the stage for identifying a potential Phase 3 production profile that should extend the mine life with additional capital and likely be strongly accretive to valuations. Assuming a combined Phase 1 + 2 production rate of 531ktpa concentrate, we estimate an additional 10-11 years of production from these new resources beyond the current 13-year LOM.
