"On the back of CATL's investment and involvement, we are very pleased to have engaged and be working with Worley who bring a wealth of lithium knowledge and experience to our 3Q Project. Worley is a leading global engineering firm and has been involved in all aspects of lithium brine operations which will be invaluable in executing our DFS," said
Results of the last pre-feasibility study ("PFS") performed by
The last Reserve Estimation issued on our PFS is summarized below:
Year | Brine | Average Li | Li metal (tonnes) | Lithium Carbonate | Resources* | ||
Proven | Probable | Proven | Probable | ||||
1 | 3.3 | 1,177 | 1,113 | 2,542 | 5,923 | 13,526 | 0.5% |
2-10 | 73 | 1,000 | 21,549 | 44,038 | 114,642 | 234,282 | 9% |
11-20 | 101 | 841 | 20,211 | 53,472 | 107,524 | 284,472 | 10% |
21-35 | 183 | 670 | 18,694 | 81,513 | 99,453 | 433,651 | 13% |
Total 35 | 360 | 790 | 61,600 | 182,000 | 328,000 | 966,000 | 32 % |
*Total M&I resources 4,005,000 tonnes of lithium carbonate @ 400 mg/l cut-off / ** Rounded / *** These two include some incidental capture from the inferred resource, which is excluded from the reserve estimate. |
This reserve will be updated because two new wells yielding 160 meters with 1,128 mg/l Lithium (PB1-R-24) and 178 meters 1,117 mg/l Lithium (PB1-R-25) were reported in
The decision to complete a DFS has been made in collaboration with Contemporary Amperex Technology Co. Ltd. ("CATL"), the Company's 8% shareholder, who will also participate in all technical decisions.
The COVID-19 situation in
Market Conditions
Due to resurgence of lithium iron-phosphate (LFP) batteries and other battery technologies that are able to use lithium carbonate in their cathode, lithium carbonate prices have materially recovered over the past months. This upward trend is expected to continue during 2021 and beyond. Spot supply of lithium carbonate battery grade material is very tight since most capacity has already been allocated on long term contracts and demand has continued to outpace production of lithium carbonate battery grade.
The Company believes that this upward trend in pricing will bode well in its long-term price expectations for its pricing assumptions on its DFS and more importantly in its continuous financing strategy negotiations.
About
The 3Q Project is located in the
Additional information regarding
About Worley
Worley is a global company headquartered in
Neither
Cautionary Note Regarding Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements. Such statements include but are not limited to, statements as to lithium brine grades at depth being consistent with surface results, the potential for resource expansion at depth, the potential of the northern salar sediments, and deeper sediments, for hosting brine, the ability to proceed to scoping studies quickly, proceeding with continued work for additional economic studies the potential for production expansion in the Company's assessment of the economic potential of the 3Q Project, that test results are indicative of future results, and the additional of additional independent directors. Generally, forward-looking statements can be identified by the use of words such as "plans", "expects" or "is expected", "scheduled", "estimates" "intends", "anticipates", "believes", or variations of such words and phrases, or statements that certain actions, events or results "can", "may", "could", "would", "should", "might" or "will", occur or be achieved, or the negative connotations thereof. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, which could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such statements. These risks include, without limitation, risks related to failure to obtain adequate financing on a timely basis and on acceptable terms, political and regulatory risks associated with mining and exploration activities, including environmental regulation, risks and uncertainties relating to the interpretation of drill and sample results, risks related to the uncertainty of cost and time estimation and the potential for unexpected delays, costs and expenses, risks related to metal price fluctuations, the market for lithium products, competition for experienced directors in the junior mineral exploration and development sector, and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Although the Company believes its expectations are based upon reasonable assumptions and has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended and undue reliance should not be placed on forward-looking statements.
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