Arizona Lithium is well funded with cash already received from the non-core acreage sale that raised $11m. Pic: Getty Images
Arizona moves closer to Canadian lithium production with pad #2 drilling at Prairie
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- Lithium brine drilling has wrapped up at pad #2
- Pad #2 is the second of three initial locations detailed in Prairie PFS
- Drilling wells on each pad is key on the path to production
Special Report: Drilling has wrapped up drilling at AZL’s Pad #2, where two exploration wells have been drilled targeting the Souris River and Dawson Bay formations within the broader Prairie lithium project, south-east of Saskatchewan.
Arizona Lithium (ASX:AZL) is moving at a steady pace to lithium production with a clear line of sight to 6000tpa LCE at Prairie.
Each pad is estimated at a net present value of ~US$150m, with the first of three brine pads already drilled.
The company is taking a derisked approach to developing the project in a tough lithium market, bringing one pad online at a time in an attempt to generate early cashflow.
AZL’s Prairie lithium project is nestled within the Williston Basin of Saskatchewan, Canada, 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.
Two exploration wells drilled at pad #2
Pad #2 is the second of three pads detailed in the preliminary feasibility study released in December 2023 and will have a target production of 2000 tonnes per annum of lithium carbonate equivalent.
Two exploration wells have been drilled at Pad #2, with one targeting the Souris River Formation and one targeting the Dawson Bay Formation.
AZL says it can convert the wells on Pad #2 into future production or disposal wells.
The company is well-funded with cash already received from a non-core acreage sale that raised $11 million in non-dilutive capital.
Gearing towards world-class scale
“Wells drilled at Pad #2 highlight our ability to drill wells across our project,” AZL managing director Paul Lloyd said.
“These results will build on the encouraging exploration results from Pad #1.
“We recently announced that we had cleared Pad #3 and we plan to continue on this same trajectory where we are clearing pads, drilling wells and gearing up towards a world class lithium project.”
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.
