Kwyjibo Project (Josette Zone) PEA: C$1.40B NPV, 35.4% IRR
Consolidated Lithium Metals Inc.'s Kwyjibo Project (Josette Zone) in Quebec, Canada (Côte-Nord region, ~125 km northeast of Sept-Îles) has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of C$1.40B, an after-tax IRR of 35.4%, and initial capital of C$881M. The mine plan runs 10 years at about 9.8 kt TREO per year.
Consolidated Lithium Metals Inc.'s Kwyjibo Project (Josette Zone) has reported Preliminary Economic Assessment (PEA) results for the rare earth elements (treo) project in Quebec, Canada (Côte-Nord region, ~125 km northeast of Sept-Îles). The study headlines an after-tax net present value of C$1.40B at a 8% discount rate. It reflects Consolidated Lithium Metals Inc.'s (CLM.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is C$1.40B using a 8% discount rate. After-tax IRR is 35.4%. Initial capital expenditure is estimated at C$881M, with life-of-mine sustaining capital of C$25M. The study models a payback period of 2 years. Economics are based on TREO basket price CAD 79.75 per kg (long-term TREO product basket price of US$57,250/t; exchange rate US$1.00 : CA$1.39).
Production and mine plan. The project envisions an underground (long hole, longitudinal and transverse) operation. Life of mine is 10 years. Average annual production is approximately 9.8 kt TREO. Average head grade is 3.35% TREO (average over LOM). Metallurgical recovery averages 75%.
These figures are extracted from Consolidated Lithium Metals Inc.'s technical disclosures and reflect the most recent PEA on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 1,409 kt | 3.38% Total REO, 1.52% Critical REO, 2.27% Light REO, 1.11% Heavy REO, 0.68% Nd2O3+Pr2O3, 0.019% Tb2O3, 0.11% Dy2O3 | — |
| Indicated | 2,728 kt | 3.44% Total REO, 1.54% Critical REO, 2.31% Light REO, 1.13% Heavy REO, 0.69% Nd2O3+Pr2O3, 0.019% Tb2O3, 0.11% Dy2O3 | — |
| Measured & Indicated | 4,138 kt | 3.42% Total REO, 1.53% Critical REO, 2.3% Light REO, 1.12% Heavy REO, 0.69% Nd2O3+Pr2O3, 0.019% Tb2O3, 0.11% Dy2O3 | — |
| Inferred | 1,370 kt | 3.92% Total REO, 1.76% Critical REO, 2.65% Light REO, 1.27% Heavy REO, 0.79% Nd2O3+Pr2O3, 0.022% Tb2O3, 0.13% Dy2O3 | — |
| Measured | 1,729 kt | 1.55% Total REO, 0.69% Critical REO, 1.05% Light REO, 0.5% Heavy REO, 0.31% Nd2O3+Pr2O3, 0.008% Tb2O3, 0.05% Dy2O3 | — |
| Indicated | 2,614 kt | 1.51% Total REO, 0.67% Critical REO, 1.02% Light REO, 0.49% Heavy REO, 0.3% Nd2O3+Pr2O3, 0.008% Tb2O3, 0.05% Dy2O3 | — |
| Measured & Indicated | 4,343 kt | 1.52% Total REO, 0.68% Critical REO, 1.03% Light REO, 0.49% Heavy REO, 0.3% Nd2O3+Pr2O3, 0.008% Tb2O3, 0.05% Dy2O3 | — |
| Inferred | 455 kt | 1.28% Total REO, 0.56% Critical REO, 0.88% Light REO, 0.4% Heavy REO, 0.26% Nd2O3+Pr2O3, 0.007% Tb2O3, 0.04% Dy2O3 | — |
| Measured | 3,138 kt | 2.37% Total REO, 1.06% Critical REO, 1.6% Light REO, 0.77% Heavy REO, 0.48% Nd2O3+Pr2O3, 0.013% Tb2O3, 0.08% Dy2O3 | — |
| Indicated | 5,342 kt | 2.49% Total REO, 1.11% Critical REO, 1.68% Light REO, 0.81% Heavy REO, 0.5% Nd2O3+Pr2O3, 0.014% Tb2O3, 0.08% Dy2O3 | — |
| Measured & Indicated | 8,480 kt | 2.45% Total REO, 1.09% Critical REO, 1.65% Light REO, 0.8% Heavy REO, 0.49% Nd2O3+Pr2O3, 0.013% Tb2O3, 0.08% Dy2O3 | — |
| Inferred | 1,825 kt | 3.26% Total REO, 1.46% Critical REO, 2.21% Light REO, 1.06% Heavy REO, 0.66% Nd2O3+Pr2O3, 0.018% Tb2O3, 0.11% Dy2O3 | — |
Our Analysis
- IRR after-tax
- 35.4%
higher than 62% of 379 projects we track
- NPV after-tax
- C$1.40B
higher than 71% of 545 projects we track
- Initial capex
- C$881M
63% of NPV
costlier than 73% of 518 projects we track
- Payback
- 2yrs
slower than 35% of 308 projects we track
- Mine life
- 10yrs
- Discount rate
- 8%
- Study price assumption
- TREO basket price CAD 79.75 per kg (long-term TREO product basket price of US$57,250/t; exchange rate US$1.00 : CA$1.39)
A 35.4% after-tax IRR puts this Quebec rare earths project ahead of 62% of the 379 projects we track, and its C$1.40B after-tax NPV ranks above 71% of 545. Those are solid upper-half numbers, not outliers, and they clear the roughly 15% after-tax return developers typically need to attract project finance. The two-year payback, quicker than 65% of the 308 projects we track, reinforces that this is a project with genuinely competitive economics rather than a marginal one dressed up by a favourable study.
The constraint that matters most is scale relative to the company. Initial capex of C$881M equals 63% of NPV, which is moderately capital-intensive and sits below only 27% of the 518 projects we track. This is one of just two projects we track for the company, so the build is a substantial commitment against a limited portfolio, and financing it without heavy dilution is the real test. Quebec's Côte-Nord region is a mining-friendly jurisdiction with established infrastructure and permitting norms, which supports how the numbers should be read, though it does not remove execution risk.
Two caveats temper the headline. This is a PEA, scoping-level work that may rest on inferred resources and carries a capital estimate typically accurate to plus or minus 50%, so the C$881M and the returns around it should be treated as indicative until a feasibility study tightens them. The economics also rest on the study's long-term TREO basket assumption of US$57,250/t (CAD 79.75/kg), and a rare earths basket is a blend whose realised value depends on the product mix actually sold, so the returns are sensitive to how that assumption holds up. The question that decides this project is whether it can be financed and built on something close to that estimate, at that basket price.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.