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Nemaska Exploration’s Whabouchi 3D Drill Tour

Click HERE evaluate the Whabouchi project and do more due diligence on Nemaska at RI Analytics.

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Nemaska’s world-class Whabouchi lithium project speeding toward development

Nemaska Exploration is aggressively pursuing the development of its 100-per-cent owned Whabouchi lithium project. In the James Bay area of Northern Quebec, the 25-million-tonne lithium deposit is known to be one of the largest resources of its kind in the world.

The Whabouchi property is ideally situated for development, lying 280 kilometres northwest of the town of Chibougamau, and near the Cree community of Nemaska, who have given the project their full support as long-term shareholders in the company.

The property is accessible by all-season roads and lies near to an airport and services centre. Power lines run directly to the site.Importantly, lakes and rivers cover approximately 15 per cent of the project area, and will provide ample supply for Nemaska’s future mining requirements.

The Whabouchi property covers 1,716-hectares, more than enough land to secure potential lateral extensions of the known deposit. When Nemaska acquired Whabouchi in 2009, the project had only five historic drill holes. In the two years that followed, Nemaska completed 115 drill holes totalling 22,085 metres, in addition to 143 surface channels and 2,780 kilometres of mechanical stripping.

Based on this and other exploration data, Nemaska completed a mineral resource model in 2011 that confirms the Whabouchi deposit as the largest and the second richest measured spodumene deposit in the world.

It contains a measured and indicated resources of 25-million tonnes at an average grade of 1.54 per cent lithium.

This resource is a 155-per-cent increase from the company’s 2010, 9.8-million tonne measured and indicated resource, which was the basis for the company’s March 2011 preliminary economic assessment.

The PEA suggested an open pit operation with a throughput of 2,950 tonnes-per-day and a mine life of 15 years, producing a six-per-cent lithium oxide spodumene concentrate, most likely for buyers in China.

The Whabouchi pit would measure 1,300-metres long by 320-metres deep. The known mineralization extends to a depth of 520 metres. The deposit remains open at depth and to the east.

Based on a spodumene concentrate price of $280 per tonne, the mine is expected to generate an average revenue of $56.6 million per year, or $849 million over an initial 15-year mine life.

This translates to a pre-tax NPV of $184 million and an IRR of 26.6 per cent.

The project’s capital costs would total just $86 million, which would include contingency and working capital.

With the recently updated resource estimate of 25-million tonnes of ore, Whabouchi’s mine life will jump to 25 years. This will dramatically improve the project’s economics, and simultaneously lower its operating costs.

The project also benefits from higher grade outcropping along a ridge 40 metres above the surrounding topography.

This allowed the mine plan to include a starter pit of about 5.4-million tonnes with a stripping ratio of just 0.8 to 1.0. As such, the first five years of mining will have exceptionally low-cost production.

Drilling at Whabouchi has confirmed the high grades and continuity of mineralization in the main zone of this lithium-rich deposit.

Drilling has also confirmed the presence of smaller dykes to the south of the Main zone.

Here are a few typical intercepts from drilling results obtained to date:

Hole WHA-10-066 contained 79.2 metres grading 1.61 per cent Li2O. This hole was an important discovery for Nemaska, confirming mineralization at a depth of over 500 metres, which was not included in the present pit design.

The recent resource estimate will contribute to a full feasibility study expected by year end 2011.

Nemaska is pressing forward with an aggressive development plan for the Whabouchi property. Permitting began in the summer of 2011. Engineering, ground preparation, the ordering of large equipment units and construction activities will begin in 2012.

Having already secured a $3.7-million private placement deal with the Chengdu Tianqi Industry Group, (Chengdoo Shiangqi) owner of the largest lithium battery chemical producer in China, Nemaska plans to start production of the mine in 2013.

Click HERE evaluate the Whabouchi project and do more due diligence on Nemaska at RI Analytics.

This presentation may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The Issuer relies upon litigation protection for forward-looking statements. This piece is for information purposes only and is not a recommendation to buy or sell any securities.

Disclosure: No Positions