Australia-headquartered Winsome Resources has outlined a path to production for its Adina project, in Quebec, Canada, with a scoping study determining that the Renard diamond mine’s processing facility and infrastructure can be successfully repurposed to develop the hard-rock spodumene resource.

Using the existing Renard assets, along with the shallow, globally significant lithium mineral resource estimate at Adina, results in a modest startup capital cost of $259-million (net of tax credits). Forecast strong cash flows will enable a rapid payback of 1.8 years from the start of commercial production.

This confirms Adina, located in the Eeyou Istchee James Bay region, as one of the most capital-efficient projects in North America.

The scoping study calculates an aftertax internal rate of return of 43%, and a net present value, using an 8% discount, of $743-million.

“Given the global challenges facing the market, we believe our approach, combined with our world-class Adina asset, is positioning the company for long-term returns,” said MD Chris Evans.

Once in operation, Adina could potentially generate over $7.5-billion of gross revenue and $1.1-billion in corporate Québec provincial and Canadian federal taxes, as well as create more than 600 jobs.

The modification and restart of the existing Renard dense media separation (DMS) processing facility will enable Winsome to produce more than 280 000 t/y of SC5.5 over 17 years, with an additional four years of processing stockpiles, for a total life-of-mine of 21 years. All-in sustaining costs are estimated at $693/t concentrate over 17 years.

With the exclusive option over the Renard operation, Winsome has access to more than C$900-million in well-maintained infrastructure built and upgraded over the past ten years. This includes a process plant which consists of a primary jaw crusher, secondary cone crusher, high-pressure grinding rolls, ore sorting, and DMS circuits necessary for lithium processing and spodumene concentrate production.

Renard is also connected to the established road and rail infrastructure and provides Winsome with a pathway to deliver product to each of the critical minerals hubs under construction at Bécancour, Québec, major ports along the St Lawrence Seaway or to North American customers using the heavy rail network between Canada and the US.

The company in April announced an exclusive option to acquire, at its election, the assets comprising the Renard diamond mine, processing facility and associated infrastructure, or all of the issued capital in Stornoway Diamonds.