This amounts to an increase of 186.6Mt, with 48% of the mineral resource now converted into a reserve which is estimated to comprise 1,464 ppm (parts per million) lithium and 5,444 ppm boron – or 1.92 Mt of lithium carbonate equivalent (LCE) and 7.68 Mt of boric acid equivalent (BAE).

These parameters support Ioneer’s plans to build a large, long-life, low-cost expandable operation, focused on the production of lithium carbonate, boric acid and then battery-grade lithium hydroxide.

The co-product of boric acid is expected to make up 25% of annual revenue from the project in its first 25 years; this is set to keep EBITDA (earnings before interest, taxes, depreciation and amortization) in the green at low lithium prices and EBITDA margin of65.7% based on average production over first 25 years.

Costs for the Rhyolite Ridge are some of the lowest among global lithium projects, with an all-in sustaining cash cost of US$5,745 per metric tonne lithium carbonate equivalent. Meanwhile, its after-tax NPV is placed at US$1.367 billion, with an unlevered, after-tax internal rate of return (IRR) of 14.5% – making for a suite of robust economics.

Managing director Bernard Rowe said the reserve update was testament to the value of the mineralisation there.

“Today’s updated Reserve and Mine Plan reinforces the importance of Rhyolite Ridge’s remarkable mineralogy,” he said.

“Our Ore Reserve estimate of 247 Mt containing a total of 1.92 Mt LCE and 7.68 Mt BAE make it the largest lithium-boron Reserve in the world.”

Ioneer shares have moved higher since the news, and at 13:17 AEST, they were trading at 13 cents – a rise of 8.33% since the market opened.

Join the discussion: See what HotCopper users are saying about Ioneer and be part of the conversations that move the markets.

The approval – granted by the Bureau of Land Management (BLM) – means Rhyolite Ridge is the first lithium project approved by the Biden government, as part of a wider government plan to boost critical minerals development.

The decision will help progress investment by Nevada’s Esmeralda County in relation to construction of the project starting in 2025, with first production expected in 2028.

The project is anticipated to create around 500 jobs during construction and 350 more during its time in operation, but crucially, will supply batteries for more than 370,000 Amercian-made electric vehicles each year. Battery materials to be processed on-site in the U.S.

Managing director Bernard Rowe said the approval was an important milestone for Ioneer.

“For more than six years, we have worked closely with state, federal and tribal governments, as well as the Fish Lake Valley community, to ensure the sound and sustainable development of our Rhyolite Ridge Lithium-Boron Project,” he said.

“We value our relationships with these stakeholders and appreciate their openness to engage, discuss concerns and develop solutions.

“Without that open and honest dialogue, such an outcome could never have been possible.”

He added the project would add millions in tax revenue for Esmeralda County.

Ioneer received a final Environmental Impact Statement (EIS) by the BLM last month – marking the end of its formal federal permitting process, which had begun in early 2020.

The company has been trading at 28 cents.

Join the discussion: See what HotCopper users are saying about Ioneer and be part of the conversations that move the markets.

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.