PMET Resources Inc. (ASX:PMT) Releases Updated Feasibility Study for Shaakichiuwaanaan, Highlighting Lower Costs and Tantalum Co-Production

Aditi Sarkar

11 November 2026 06:47 PM AEDT

PMET Resources Inc. (ASX:PMT) Releases Updated Feasibility Study for Shaakichiuwaanaan, Highlighting Lower Costs and Tantalum Co-Production

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Highlights

Updated Feasibility Study for the CV5 Lithium-Tantalum Project outlines an underground-first strategy targeting approximately 560 ktpa spodumene concentrate in the first three years.
Total Cash Operating Cost improved 19% to US$433/t, benefiting from a tantalum co-product Credit of US$108/t.
Maiden Tantalum Mineral Reserve of 83.0 Mt at 148 ppm Ta2O5 declared as part of the updated study.
Phase 1 Net Capital Cost of approximately CA$1,080 million is broadly comparable to the 2025 study despite adding tantalum scope.
Plant commissioning targeted for the second half of 2029, with FID targeted for late 2027.

PMET Resources Inc. (ASX:PMT) has released an updated Feasibility Study for the CV5 Lithium-Tantalum component of its Shaakichiuwaanaan Project in Québec, Canada. The updated study incorporates tantalum co-production for the first time, shifts to an underground-first development strategy to access higher-grade mineralisation early in the mine life, and achieves materially improved operating Economics compared to the June 2025 lithium-only Feasibility Study.

Latest Development

The updated study introduces tantalum as a commercial co-product, with a Maiden Probable Mineral Reserve of 83.0 Mt at 148 ppm Ta2O5 declared alongside the existing lithium reserve. Average life-of-mine production is estimated at approximately 635,000 pounds of contained tantalum pentoxide per year from a secondary concentrate grading approximately 20% Ta2O5. This tantalum credit drives the 19% reduction in Total Cash Operating Cost to US$433 per tonne of spodumene concentrate (FOB Québec ports). The All-In Sustaining Cost improved 18% to US$480/t. Capital costs for Phase 1 are estimated at approximately CA$1,080 million net — broadly consistent with the prior study despite incorporating additional tantalum scope and underground development acceleration, offset by equipment leasing, tailings phasing, and other optimisations. Plant commissioning is targeted for the second half of 2029, with the Final Investment Decision targeted for late 2027.

Company Background

PMET Resources holds the Shaakichiuwaanaan Project — a lithium-caesium-tantalum deposit in Québec — that hosts what the Company describes as the largest lithium pegmatite Mineral Reserve in the Americas at 83.0 Mt at 1.27% Li2O. The project also hosts the world's largest pollucite-hosted caesium Mineral Resource at the CV13 pegmatite. PMET has secured strategic investments from VW/PowerCo (with a long-term offtake commitment for 100 ktpa of spodumene concentrate) and other international investors, and holds approximately CA$176 million in cash as of June 2026. A Preliminary Economic Assessment incorporating CV13 caesium is expected later in Q4 2026.

Sector Context

Global lithium Supply chains are under structural scrutiny as EV battery Demand grows and geographic concentration risks become more apparent. Québec, as a Tier-1 Mining Jurisdiction with low-cost hydroelectric power, rail connectivity to Atlantic ports, and a French-speaking skilled workforce, is an increasingly favoured location for critical minerals development. The tantalum market is closely linked to advanced electronics, AI data centre infrastructure, and aerospace and defence applications — sectors with consistent and growing demand. Shaakichiuwaanaan's position as a potential significant non-artisanal tantalum source is strategically relevant in a market currently dominated by a small number of producing assets.

Market Perception

The 18–19% improvement in cash and all-in sustaining costs against an equivalent 2025 study scenario demonstrates that the project has become more competitive on the global lithium cost curve, an important consideration for future project financing discussions. The Measured category resource milestone achieved through 57,000+ metres of infill drilling earlier in 2026 provides lender-grade confidence in the geological model. The addition of tantalum as a co-product not only reduces net operating costs but also diversifies the Revenue base, partially insulating the project from lithium price volatility.

Growth Drivers

The underground-first strategy accelerates access to the higher-grade Nova Zone, expected to average approximately 1.7% Li2O in years one through five, enabling approximately 45% more spodumene concentrate production in the first three years compared to the prior study from a smaller Phase 1 processing footprint of 2.2 Mtpa. The upcoming CV13/CV5 PEA is expected to incorporate the caesium and broader project value proposition. A bulk sample programme of up to 50,000 tonnes of mineralised material from the underground ramp is planned, further de-risking metallurgical and processing assumptions. Regional infrastructure improvements and long-term processing partnerships are also being evaluated.

Risks and Challenges

The project's development timeline remains subject to environmental and social impact assessment (ESIA) approval, Indigenous community agreement negotiations, and project financing arrangements. The ESIA formal review is currently underway with Québec and federal authorities. The tantalum market is relatively small and opaque, requiring careful negotiation of offtake arrangements for the new co-product. Capital costs in the construction environment and logistics costs — which increased by 39% per tonne of concentrate relative to the 2025 study due to general Inflation and refined routing assumptions — are ongoing execution risks. FX movements between the Canadian and US dollar affect financial metrics given the dual-currency nature of costs and revenues.

Recent Announcements

The updated Feasibility Study follows the June 2025 Feasibility Study, which was lithium-only. PMET has previously announced VW/PowerCo strategic investment and offtake, letters of support from multiple export credit agencies for project debt financing, and a signed Letter of Intent with the Cree Nation of Chisasibi as a foundation for an Impact and Benefit Agreement process. A CV13/CV5 PEA is targeted for release in Q4 2026, adding caesium to the development scenario.

Key Insights

PMET Resources has delivered a meaningfully improved development scenario for Shaakichiuwaanaan through the combination of an underground-first strategy and tantalum co-production. The 18–19% improvement in cost metrics, the maiden tantalum Mineral Reserve, and capital costs broadly consistent with the prior study collectively de-risk the project's economic foundation. With CA$176 million in cash, strategic investor backing, an active financing dialogue, and the ESIA review underway, the Company is working toward its late 2027 FID target from an improving technical and commercial position.

FAQs

Q: What is the underground-first development strategy at Shaakichiuwaanaan?

A: The updated study shifts initial production from a combined open-pit/underground sequence to prioritise underground mining of the high-grade Nova Zone (averaging approximately 1.7% Li2O in years 1–5). This generates approximately 45% more spodumene concentrate in the first three years from a smaller 2.2 Mtpa plant, while also removing seasonal construction risks associated with surface water management.

Q: What tantalum production is expected?

A: The updated study estimates average life-of-mine production of approximately 635,000 pounds of contained tantalum pentoxide per year, produced in a secondary concentrate grading approximately 20% Ta2O5. This represents what PMET describes as a potentially significant source of non-artisanal tantalum globally.

Q: Why did Total Cash Operating Cost improve?

A: The 19% improvement in Total Cash Operating Cost to US$433/t reflects underground mining efficiencies (16% fewer development metres), DMS flowsheet simplification, and the tantalum co-product credit of approximately US$108/t of spodumene concentrate, which more than offsets higher logistics costs.

Q: Does PMET have an offtake agreement in place?

A: Yes. VW/PowerCo has committed to a strategic long-term offtake agreement for 100 ktpa of spodumene concentrate over 10 years, with up to approximately 700 ktpa of Phase 1 and 2 production remaining uncommitted for future arrangements.

Q: What is the caesium opportunity at Shaakichiuwaanaan?

A: The CV13 pegmatite hosts the world's largest pollucite-based caesium Mineral Resource, with 1.844 Mt at 4.40% Cs2O Indicated and 0.981 Mt at 3.00% Cs2O Inferred. A PEA incorporating caesium alongside lithium and tantalum is targeted for Q4 2026.

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