The project is located 50 kilometres southeast of Kambalda in the Eastern Goldfields of Western Australia.
The Bald Hill project is owned by Alliance Mineral Assets (SGX:40F) with Tawana earning a 50% interest.
Tawana and Alliance have awarded the major $30 million engineering, procurement and construction (EPC) contract to build the DMS process plant to the Primero Group.
Primero was chosen for its expertise in lithium projects across the globe. The company recently commissioned a DMS lithium plant in Western Australia.
The Bald Hill project currently has a maiden lithium ore reserve of 4.3 million tonnes at 1.18% lithium and 208 ppm tantalum.
The pre-feasibility study for the project, being the initial “starter pit”, contemplates net cash flow before tax of $223 million and a net present value (NPV at 10% discount rate) of $150 million.
Importantly, Bald Hill is projected to achieve an internal rate of return of 185% with a payback period of only circa 12 months.
Associated site works and construction have already commenced, and the company remains committed on delivering the first lithium concentrate in Q1 2018.
Tawana’s share price increased by circa 70% during the past three months, closing at $0.23 on Tuesday.