Global Lithium’s Manna DFS Validates 14-Year Mine Life with Strong Economics

Manna Lithium Project – A Strategic Asset in WA’s Eastern Goldfields

Global Lithium Resources Limited (ASX – GL1) has unveiled the results of its Definitive Feasibility Study (DFS) for the Manna Lithium Project (MLP), located 110 kilometres east of Kalgoorlie in Western Australia’s Eastern Goldfields. The DFS confirms Manna as a long-life, economically robust lithium asset, underpinning the company’s ambitions to become a significant player in the global lithium supply chain.

The study highlights a 14.3-year mine life with an estimated production of 2.763 million tonnes of spodumene concentrate at 5.5% lithium oxide (Li2O). This positions Manna as the third largest lithium deposit in the region, with a Mineral Resource Estimate of 51.6 million tonnes at 1.00% Li2O and an Ore Reserve of 19.4 million tonnes at 0.907% Li2O.

Robust Financial Metrics and Project Economics

Financially, the DFS delivers compelling metrics – a post-tax net present value (NPV8) of A$472 million and an internal rate of return (IRR) of 25.7% based on a spodumene concentrate price of US$1,400 per tonne (SC6.0 CIF) and an AUD – USD exchange rate of 0.67. The project’s payback period is estimated at 3.5 years, with a breakeven spodumene price of US$784 per tonne, demonstrating resilience even in volatile market conditions.

Capital expenditure is projected at A$439.1 million, encompassing mining pre-production, processing plant, infrastructure, and contingency allowances. Operating costs are competitive, with an all-in sustaining cost (AISC) of US$738 per tonne SC5.5 (excluding sea freight and insurance), positioning Manna favourably against peers.

Mining and Processing – Open Pit to Underground Transition

The mining strategy involves an initial conventional open pit operation for approximately 8 years, transitioning to underground mining for the remaining life of mine. The processing plant is designed for a throughput of 1.8 million tonnes per annum, employing a flotation circuit optimized through extensive metallurgical testwork to achieve an average lithium recovery of 72.8%.

Spodumene concentrate will be transported by road to the Port of Esperance for export, with logistics arrangements underway including engagement with the Southern Ports Authority. The project benefits from granted mining lease M28/414 and a Native Title Mining Agreement with the Kakarra Part B Native Title Group, securing tenure and social license to operate.

Infrastructure and Power Supply

Supporting infrastructure includes a 380-room accommodation village, new access roads, and a dedicated power station fueled by LNG thermal engines, with future options for solar hybridization. The power demand is forecast to rise from 11MW initially to 18MW as underground mining commences.

Path to Final Investment Decision and Funding

Global Lithium is actively progressing off-take discussions, having secured an agreement for 30% of production with Canmax Technologies Co., Ltd, and is engaging with financiers and strategic partners to secure project funding. The company holds A$20 million in cash to support ongoing development activities and targets a Final Investment Decision in 2026.

While confident in funding prospects, the company acknowledges potential risks including dilution from capital raising and uncertainties in environmental approvals. The DFS also identifies key risks such as raw water supply, mining dilution, ore variability, and regulatory approvals, with mitigation strategies and opportunities to optimize metallurgical recovery and reduce costs.

Outlook – Positioned for Growth in a Critical Mineral Market

The Manna Lithium Project’s DFS results reinforce Global Lithium’s position in the critical minerals sector, with a project that combines scale, robust economics, and a clear development pathway. As global demand for lithium intensifies amid the energy transition, Manna is poised to contribute meaningfully to supply while delivering shareholder value.