Arizona Lithium has locked in the key water rights licence from the Saskatchewan Water Security Agency for Phase 1 of its Prairie lithium brine project. Pic: Getty Images
Mining
Special Report: Arizona Lithium is another step closer to starting production at its Prairie project Phase 1 development after it was granted the necessary water rights licence from Saskatchewan’s Water Security Agency.
The key licence is accompanied by an Approval to Construct Works as well as consent from all surrounding oil and gas companies for the company to dispose lithium-depleted brine.
These approvals represented the final step in the now submitted Lithium Brine Project Application to the Ministry of Energy and Resources.
Phase 1 of Arizona Lithium’s (ASX:AZL) updated phased development plan for the Prairie will seek to produce 150tpa of lithium carbonate equivalent using a commercial-scale Li-Pro direct lithium extraction unit supplied by US DLE leader Koch.
The company noted that the Duperow lithium brine production well, disposal well, and brackish water source well that were all drilled on Pad#1 as part of its 2024 drill program already provide the necessary well infrastructure to support lithium extraction operations.
“These approvals are a massive milestone for Prairie, and set the stage for production and disposal in Phase 1,” managing director Paul Lloyd said.
“We look forward to continuing to work with the government of Saskatchewan through the final Lithium Brine Project Application for Phase 1.”
Phase 1 of the Prairie development will serve as proof of concept with a low capital expenditure of US$22m.
Should it prove successful, the company can quickly expand the production facility with additional commercial-scale DLE units at Pad #1 under Phase 2.
Output can be increased further by duplicating this design at the already de-risked Pads #2 and #3.
AZL is currently considering non-dilutive capital initiatives with multiple strategic partners completing extensive due diligence along with existing government grants, loans and traditional debt financing solutions.
It is also distributing battery-grade samples to potential customers in Asia and North America.
Construction work is expected to begin in Q2 2025 with leading Western Canadian oil and gas facilities engineering company Grey Owl Engineering already engaged for facility engineering, procurement, and construction.
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.
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