Arizona Lithium starts pad construction for first lithium production and disposal wells at Prairie

Arizona Lithium starts pad construction for first production and disposal wells
This pad will target production rates of about 2,000tpa LCE
Quick advance from pilot to commercial operations expected
Licensing under way for first wells at the pad

Pad construction has started at the site of Arizona Lithium’s first proposed direct lithium extraction facility at its Prairie project in Saskatchewan, Canada.

The company is advancing the use of direct lithium extraction DLE at the Prairie lithium brine project, which has a resource of 5.7Mt lithium carbonate equivalent – most of which is in the higher confidence indicated category (4Mt LCE at 127mg/L lithium) that allows for mine planning.

It recently received the DLE pilot plant at its facility in Saskatchewan and has started working with the provider to commission it as quickly as possible.

Getting the plant running will allow Arizona Lithium (ASX:AZL) to progress with the third and final phase of the evaluation of the promising third-party DLE technology.

Two successful phases of offsite testing have already been completed.

Prairie also benefits from being in one of the world’s top mining friendly jurisdictions with easy access to key infrastructure including electricity, natural gas, fresh water, paved highways and railroads.

Pad construction to enable quick shift from pilot to commercial operations

The pads that are now being constructed at the project will allow for the drilling of the first production and disposal wells in the first half of 2024.

Based on its upcoming pre-feasibility study, the pad will target production rates of about 2,000tpa lithium carbonate equivalent, which will allow AZL to quickly advance from pilot operations to commercialisation of the first facility via the drilling of wells.

Licensing for the first wells for this pad is currently underway.

Arizona Lithium (ASX:AZL) — Pad construction underway. Pic: Supplied (AZL).

The company adds that the DLE pilot will provide the final parameters needed to design, permit and construct its first commercial lithium extraction facility.

Its upcoming PFS, which is due for release by the end of this year, will provide a scope of economics and technical overview of the project.

Information from both the PFS and pilot will be used to finalise the application to license the first commercial DLE facility.

“The ability to receive permits to construct the pad highlights the expediency of the responsible and efficient Saskatchewan regulatory framework, which is built on years of oil and mining development,” managing director Paul Lloyd said.

“There is abundant infrastructure near this site, as this is a very active industrial region for agriculture, mining and oil.

“This ability to get things done is a prime example of why Saskatchewan is consistently named a top ranked jurisdiction for mining investment, and why we believe our project in Saskatchewan will be one of the first to market in North America.

“We look forward to continuing to work with the government of Saskatchewan on finalising the licence and permits for our wells and lithium extraction operations over the coming months, as we continue to target 2025 for initial production.”

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.