Frontier Lithium Inc. announced Thursday that a definitive feasibility study for its PAK lithium project in northern Ontario has increased the project's proven and probable reserves by 37%. The reserves now total 31.1 million metric tons at a grade of 1.51% lithium oxide. The C$943 million capital expenditure project is expected to produce an average of 200,000 metric tons of spodumene concentrate annually over a 31-year mine life, totaling 6.1 million metric tons.

The study estimates a net present value of C$932 million with an 8% discount rate and an after-tax internal rate of return of 17.9%. Frontier projects average annual pre-tax earnings of C$285 million in steady-state operations and a total after-tax cash flow of C$5.14 billion over the life of the mine. All-in sustaining costs are forecast at C$624 per metric ton, with sustaining capital of C$137 million and closure costs of C$60 million.

“This feasibility study is a key milestone that builds confidence in advancing permitting, infrastructure and strategic partnerships,” said Frontier President and CEO Trevor Walker. “With strong projected economics, low costs and long-term earnings potential, the project supports Canada’s critical minerals strategy and could fund future growth.”

Located more than 1,400 kilometers northwest of Toronto near the Ontario-Manitoba border, the 280-square-kilometer PAK project is being developed in partnership with Mitsubishi Corp. The Japanese conglomerate invested an initial C$25 million in 2023 for a 7.5% stake in a Frontier subsidiary, with the option to increase its ownership to 25% following the feasibility study.

Frontier has identified three high-grade spodumene-bearing deposits — PAK, Spark and Bolt — all within a 3-kilometer radius. The maiden inferred resource at Bolt is 5.5 million metric tons at 1.23% lithium oxide. Additional spodumene-bearing pegmatites, Ember and Pennock, have also been discovered within the project area. All known deposits remain open at depth, with Ember located just 1 kilometer north of Spark.

The company has begun the permitting process and expects completion by mid-2027. Construction will be supported by C$120 million in federal funding, matched by Ontario, to build access infrastructure, including a new road and bridge. Frontier anticipates generating more than C$1 billion in federal tax revenue and C$699 million in provincial taxes throughout the project’s lifespan. Over 230 permanent jobs are expected to be created.

Frontier Lithium shares rose 1.9% to C$0.54 on the Toronto Stock Exchange Thursday morning, giving the company a market capitalization of approximately C$123 million. Over the past year, the stock has traded between C$0.38 and C$0.87.