Minas Gerais State Lithium Project

Lithium is a relatively rare element, a soft, light metal, found in rocks and subsurface fluids called brines.

It is the major ingredient in most rechargeable batteries and is found in electric and hybrid vehicles, mobile phones, laptops and grid-scale storage batteries. Without lithium there is no electric revolution and it is arguably the most important metal in the fight against climate change.

The reason lithium is so prevalent in batteries is because it is the lightest metal in the world and has a much higher energy density than other metals. So it has an excellent weight to energy ratio.

The USA, the EU and UK have all defined lithium as a “critical mineral”, essential for the economic and national security of those countries.

Minas Gerais State Lithium Exploration Licences

Quest Critical Metals have secured 25,080 hectares in Brazil’s Jequitinhonha Valley in the Itinga Basin of Minas Gerais State, widely known as ‘Lithium Valley’. It is currently home to 85% of Brazil’s lithium reserves and has strong support from the State and national authorities. The Minas Gerais State has even launched a Lithium Valley Brazil initiative with its ‘Invest Minas’ department which is focused on formulating policies to attract foreign companies and investment into the region.

The area hosts three operating lithium mines, the largest is Sigma Lithium’s (TSXV: SGML) Groto do Cirilo mine which has a post-tax IRR of 1,282% and is currently operating at $577/tonne FOB (a 37% Net Profit Margin).  This makes it one of, if not the, most profitable hard rock lithium mines in the world.

This potential for lost cost production in the area, due to a combination of good geology (grade and metallurgy), a supportive local government and good infrastructure, has been confirmed by other companies. Atlas Lithium (NASDAQ: ATLX) reported that their production would also be below $600/tonne FOB which compares very favourably to the $1,100/tonne FOB cost of Australian hard rock producers.

With year-round exploration available, thanks to the climate, a secure and mining-friendly environment and established infrastructure exploration programs can be carried out rapidly and cost-effectively.  This is exciting prospect for the Quest Critical Metals and fits well with our strategy of developing exploration ‎projects with a range of metals and minerals that are crucial for the current move towards ‎electrification.