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Lithium Plus Minerals Ltd (ASX:LPM)

ALERT: Price-sensitive ASX Announcement for LPM
Current share price for LPM : $0.100 -0.02 (-16.67%)+
Announcement
Release
20 Oct 2026 11:30AM
Price at Release
$0.120
Full Release
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Summary
Lithium Plus Minerals Ltd’s October 2026 Lei DSO Lithium Project Scoping Study Presentation outlines a fast-tracked underground direct shipping ore development at the Lei deposit in the Northern Territory, with ore to be crushed and screened on site and exported through Darwin Port, targeting low upfront capital, early cash flow and a streamlined approvals path. The study is preliminary and based on a production target supported by a 2026 JORC Mineral Resource of 5.22Mt at 1.50% Li2O for 78.42kt contained Li2O, comprising 2.85Mt Indicated at 1.49% Li2O and 2.37Mt Inferred at 1.51% Li2O, with a 34% increase in contained lithium from the updated estimate; mine plan production totals 3.52Mt at 1.37% Li2O for 48.4kt contained Li2O over a six-year mine life at a 750ktpa mining rate, with years 1 and 2 sourced entirely from Indicated material. Using an assumed DSO price of US$350/t CIF China on a 1.5% Li2O basis and AUD:USD 0.70, the study reports post-tax NPV8 of A$325.0 million, post-tax IRR of 75.4%, payback of 1.8 years from first production, life-of-mine post-tax free cash flow of A$492.7 million, project capex of A$87.7 million and AISC of A$238/t delivered CIF China. The presentation also notes a granted 20-year Mining Lease, completed cultural heritage surveys, a Supplementary Environmental Report under assessment, a non-binding heads of agreement with Darwin Port Operations, a non-binding offtake MOU with Canmax covering 50% of offtake, and funding pathways under review including offtake-linked prepayment, strategic partners, debt and equity, while highlighting resource growth potential at Lei and nearby pegmatites and a target timeline of Pre-Feasibility Study and final investment decision in Q2 CY2027 and first production in Q3 2028.
Key Points
  • Lei DSO Lithium Project Scoping Study presents a low-capital underground direct shipping ore development pathway in the Northern Territory.
  • The project is based on a 2026 Mineral Resource Estimate of 5.22Mt at 1.50% Li2O for 78.42kt contained Li2O, including 2.85Mt Indicated and 2.37Mt Inferred.
  • Contained lithium in the Lei resource increased 34% in the 2026 update.
  • The production target is 3.52Mt at 1.37% Li2O for 48.4kt contained Li2O over a six-year mine life.
  • Years 1 and 2 production are drawn entirely from Indicated material, with Indicated material dominating early cash flow years.
  • Target mining rate is 750ktpa using a conventional underground long-hole open stoping approach accessed by box cut.
  • DSO ore is to be crushed and screened on site with no beneficiation required before haulage to Darwin Port.
  • Assumed pricing in the study is US$350/t CIF China on a 1.5% Li2O basis and AUD:USD 0.70.
  • Post-tax project metrics are NPV8 of A$325.0 million, IRR of 75.4%, payback of 1.8 years and life-of-mine free cash flow of A$492.7 million.
  • Initial project capital is estimated at A$87.7 million, with sustaining capital expected to be funded from operating cash flow.
  • AISC is presented at A$238/t of DSO product delivered CIF China.
  • The project has a granted 20-year Mining Lease and environmental approvals are advancing, including a Supplementary Environmental Report under assessment.
  • Commercial de-risking includes a non-binding heads of agreement with Darwin Port Operations and a non-binding offtake MOU with Canmax for 50% of offtake.
  • Funding options under review include offtake-linked prepayment, strategic partner funding, debt and equity.
  • The presentation highlights exploration and expansion potential at Lei Primary, Lei Secondary, Perseverance, Jewellers and Jennys pegmatites.
  • Exploration targets for Lei Primary and Secondary are stated at 7.6Mt to 19.4Mt at 1.2% to 1.6% Li2O for 91kt to 310kt contained Li2O, noting these are conceptual in nature.
  • Indicative development timing targets Pre-Feasibility Study and final investment decision in Q2 CY2027 and first production in Q3 2028.
  • The study is preliminary in nature and does not establish Ore Reserves or guarantee economic viability.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.