Pmet Resources (ASX:PMT) said a feasibility study at its Shaakichiuwaanaan property in Canada confirmed the scope for a large-scale and long-life lithium operation, according to a Tuesday filing with the Australian bourse.

The study also confirmed the feasibility and viability of developing a large-scale, long-life spodumene pegmatite operation in the region, the filing said.

The study showed that project is expected to produce about 800,000 tonnes of spodumene concentrate per annum, with an after-tax internal rate of return of about over 18%, the filing added.

It also shows resilience to lower market cycles and offers further upside potential, the company said.

A final investment decision for the project is expected in the second half of the fiscal year, the company added.

Shares of the company fell past 6% in recent Tuesday trade.