Surge Battery starts PFS metallurgical testing at NNLP

Executive Summary

• Surge Battery Metals (via its joint venture Nevada North Lithium LLC) has engaged Kemetco Research Inc. to conduct advanced metallurgical optimization testing to support the ongoing prefeasibility study (PFS) for the Nevada North Lithium Project.
• The testing utilizes a master composite sample representing the first 10 years of mine life, developed in collaboration with lead engineering firm Fluor Corp., to validate and optimize process design criteria and heat/mass balance models.
• The program aims to derisk the project by optimizing the flowsheet, validating impurity removal and zero liquid discharge (ZLD) integration, confirming high-purity lithium carbonate production, and evaluating the economic viability of recovering cesium and rubidium byproducts.

Key Details

• Parties Involved: Nevada North Lithium LLC (Joint Venture between Surge Battery Metals and Evolution Mining Ltd.) and Kemetco Research Inc.
• Engineering Partner: Fluor Corp. is the lead engineering firm for the PFS.
• Sample Source: A master composite sample representing the first 10 years of mine life.
• Strategic Context: Kemetco previously executed foundational metallurgical testing for the Preliminary Economic Assessment (PEA) dated May 19, 2025, providing continuity for the current PFS phase.
• Technical Scope - Flowsheet Optimization: Comprehensive testing across the proposed flowsheet, including sulphuric acid leaching, neutralization, and counter-current decantation (CCD).
• Technical Scope - Water Management: Advanced testing of impurity removal circuits to validate reagent consumption (lime and soda ash) and simulate the zero liquid discharge (ZLD) circuit, a key component of the water conservation strategy.
• Technical Scope - Product Validation: Precipitation and crystallization testing to confirm efficient production of high-purity lithium carbonate.
• Technical Scope - Byproduct Evaluation: Monitoring the deportment of cesium (Cs) and rubidium (Rb) during leaching and purification to assess the economic viability of recovering these high-value specialty metals.
• Project Resource Data (from PEA):
  • Pit-constrained inferred resource: 11.24 million tonnes (Mt) of lithium carbonate equivalent (LCE).
  • Grade: 3,010 ppm Li at a 1,250 ppm cut-off.
  • Financial Metrics (at $24,000/t LCE and opex of $5,243/t LCE):
    • After-tax NPV (8%): $9.17 billion (U.S.).
    • After-tax IRR: 22.8%.
• Qualified Person: Alan J. Morris, MSc, CPG, of Spring Creek, Nev., reviewed and approved the technical aspects.

Notable Quotes

• "We are very pleased to be working with Kemetco again. By pairing their intimate understanding of our Nevada North deposit with Fluor's commercial engineering capabilities, we are combining the necessary expertise to complete the testwork and lock in our optimized flowsheet. This will support our fully funded joint ventured prefeasibility study." — Greg Reimer, President and CEO of Surge Battery Metals.