Interview with Brandon Smith, CDO of Grid Metals Corp.

Our previous interview: https://www.cruxinvestor.com/posts/grid-metals-grdm-advancing-lithium-project-in-manitoba-3260

Recording date: 29th November 2023

Fast-Tracking Lithium Production by 2025 in Manitoba’s Fertile Ground

Grid Metals is advancing its Donner Lake lithium project at a rapid clip, targeting production by 2025. This aggressive timeline is enabled by Manitoba’s streamlined permitting and access to regional infrastructure, including an existing mill just 35km from the project. By refurbishing the True North gold mill for lithium processing, Grid avoids building a new dedicated facility and capex exceeding $300 million.

Instead, the company estimates a modest $50 million investment—including ample contingencies—could see Donner Lake transformed into a 75,000 tonne per annum lithium mine. The site already hosts a 7 million tonne resource at 1.39% lithium, with expansion potential at depth. Completed economic studies will shed further light on project returns, but early indications point to robust economics.

Notably, Grid Metals has signed an MOU with nearby specialty metals producer Tanco to assess the processing of Donner Lake material. However, the company suggests tolling economics are currently more favorable with the True North option. Either way, this infrastructure access is unique in the lithium development landscape.

Permitting is another critical advantage in Manitoba, where Grid Metals is modeling its application after a predecessor mine that went from discovery to permits in under three years. Approval for Donner Lake is expected in early 2025, dovetailing with feasibility study completion to allow project financing and development for targeted production that year.

Major global forces support Grid’s ambitions, with surging electric vehicle demand supercharging lithium consumption. While prices have recently softened, forecast tightening supplies bode well for producers coming online in the next few years. Donner Lake’s convenient location also unlocks government support, with Grid Metals estimating 30-40% of capex recoverable through grants and tax credits.

With much of the de-risking work already done courtesy of accessible infrastructure and geoscience data, Donner Lake is primed to realize substantial returns as the battery revolution gathers momentum. Grid metyals offers investors a smart way to ride the lithium wave.
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View Grid Metals' company profile: https://www.cruxinvestor.com/companies/grid-metals-corp

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