Sigma Lithium gets licence to build second mine at Grota do Cirilo

Sigma Lithium (TSXV: SGML; NASDAQ: SGML) announced on Monday it has received all required licences to build a second mine at its main Grota do Cirilo property in Minas Gerais, Brazil, which would provide continued spodumene ore feedstock supply for its production plant.

Receipt of the triple licence for construction, installation and operation, Sigma CEO Ana Cabral said, provides the company with “the regulatory framework necessary” for future operations at Barreiro, ensuring a consistent and reliable supply of lithium feedstock for years to come.

Spodumene produced at Barreiro is to feed its Greentech lithium beneficiation plant, which is currently in its first stage with a production capacity of 270,000 tonnes in concentrates per year. A second stage expansion is underway to raise the capacity to 520,000 tonnes, backed by a 16-year loan from the National Brazilian Bank for Economic and Social Development (BNDES).

Sigma’s entire mineral concession package in Brazil currently contains 200 known pegmatites. To date, the company has delineated a proven and probable reserve base of 77 million tonnes at 1.4% lithium oxide, for 2.6 million tonnes of lithium carbonate equivalent.

Also on Monday, Sigma announced that it is loading 22,650 tonnes of its lithium products for shipment to IRH Global Trading in Abu Dhabi (IRH). This follows the first shipment of 27,500 tonnes to IRH earlier this month.

The Vancouver-headquartered Sigma noted that while current operations do not require immediate mining at Barreiro, it has consistently emphasized a “proactive approach” to environmental permitting. The company initiated the environmental assessment studies in January 2021 and filed for its environmental licence in July of 2022.

Shares of Sigma Lithium fell 1.1% to $15.85 apiece on Monday afternoon in Toronto, for a market capitalization of $1.7 billion. Its shares traded in a 52-week range of $11.85 and $45.