Canadian Energy Metals (CEM) has announced the results of its preliminary economic assessment (PEA) for the Thor project in Saskatchewan, which indicates the potential for Canada’s first major domestic alumina resource. The PEA, prepared by two leading engineering firms, suggests the project could have global significance.
“This PEA confirms that the Thor project is a possible game changer for North America’s aluminum supply chain. In our world, anything that moves products, transmits power or stores energy uses aluminum. We have established a world-leading, secure source of alumina right here in Saskatchewan. Our next focus is to engineer a demonstration facility while moving Thor towards commercialization,” CEM CEO Christopher Hopkins said in a Jan. 29 news release.
The PEA mineral resource estimate reveals a measured and indicated resource of 49.5 billion tonnes, containing 6.8 billion tonnes of alumina, with an inferred resource of 86.6 billion tonnes. This estimate covers 600 square km, representing 23% of the main property.
CEM has successfully produced two types of alumina through ongoing piloting efforts: 3N Chemical Grade Alumina and 4N High Purity Alumina. The company is conducting additional testing on the deposit’s polymetallic nature, focusing on smelter grade alumina, scandium, and vanadium.
The PEA financial model envisions a surface mining and processing operation with an average throughput of 16.5 million tonnes per year of ore feed, supporting alumina production of 1.8 million tonnes per year over a 25-year project life. The model assumes initial capital expenditures of $6.3 billion, operating costs of $1.6 billion per year, and product price assumptions of $5,000 per tonne for CGA and $25,000 per tonne for HPA. The projected internal rate of return is 72% (after-tax) with a net present value of cash flows at $72.3 billion (discounted at 10% after-tax).
“The Thor project discovery pairs our province’s pro-mining investment policies with a substantial geological advantage. We’re excited about the prospect of a new alumina industry setting up shop in our province, where people are ready for more jobs and investment from around the world,” Saskatchewan Premier Scott Moe said in a statement.
The company aims to update the mineral resource estimate, confirm potential for new products and by-products, prepare a prefeasibility study, and pursue opportunities to advance, finance, and monetize the Thor project in 2026. CEM said it continues to evaluate project scenarios, sensitivities, and risks associated with the assumptions applied in the PEA.
