The Prairie lithium brine project could potentially deliver significant returns without the utilisation of large capital expenditures. Pic via Getty Images
Mining
Arizona Lithium is expediting development work at the Prairie lithium project in Canada which is believed to have the ability to rapidly scale up production on a modular basis.
So far, Arizona Lithium (ASX:AZL) has completed the first two phases of offsite testing on selected DLE technology at the Prairie lithium project and has elected to move forward with a larger third phase DLE pilot in Saskatchewan planned for November.
The company’s goal here is to use the data to scope and design how a commercial DLE facility may function on its Prairie Project.
DLE evaluation is of the highest priority for AZL’s board and management team as it could immediately unlock significant value for the company and shareholders.
The process of evaluating third party DLE providers and the development of AZL’s proprietary DLE technology will be run in tandem to maximise the potential economic benefit for shareholders.
“We have a world class resource at the Prairie lithium project that carries with it a significant in-ground value,” AZL managing director Paul Lloyd says.
“Our priority is to unlock that in-ground value for the benefit of all shareholders with the implementation or development of DLE technology.
“We are also very focused on the pathway to production and Saskatchewan ticks the following boxes: one of the top mining jurisdictions, access to infrastructure, historic oil and gas production profile, and well-developed permitting process for the oil and gas industry.”
With the ability to scale up production on a modular basis, Lloyd explains the Prairie lithium brine project could potentially deliver significant returns without the utilisation of large capital expenditures.
Meanwhile, AZL has commenced works to upgrade the Prairie JORC Inferred mineral resource of 4.1 million tonnes of lithium carbonate equivalent (LCE) at 111mg/L Li, which stands as the highest quality inferred lithium brine resource in Canada and a world class lithium resource.
A pre-feasibility study is also on the way to confirm the internally produced economic model with highly robust economic numbers anticipated.
AZL has signed a contract with a third party DLE provider to mobilise to the pilot plant in Canada.
As it stands, Phase 1 and Phase 2 scale testing has produced exceptional results and Phase 3 is planned for November.
This article was developed in collaboration with Arizona Lithium, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
