Lithium Australia Quarterly Activities Report out today:Notice how partnership with Alix has become the primary focus of their global operations and lithium hydroxide processing announcement:
LIT’S DECEMBER QUARTER PROVES THAT LITHIUM HYDROXIDE CAN BE PRODUCED FROM LITHIUM MICAS
Report for the quarter ending 31 DECEMBER 2015
HIGHLIGHTS
LIT produces lithium hydroxide from its Lepidolite Hill (Western Australia) lithium carbonate. Final reconciliations pending.
100% success rate in LITCB to LITCC conversion program
LIT executes memorandum of understanding to jointly develop lithium extraction technologies at the Electra Project with samples containing lithium now collected Geochemical surveys completed at Lepidolite Hill
Geochemical surveys commenced at Pilgangoora
Appointment of consultants to spearhead lithium clay processing
Successful capital raisings during and after quarter end including first institutional shareholder
Research initiated on LIT
Subsequent to quarter end, LIT has raised funding of $6.5m
SUMMARY
Lithium Australia (“LIT”) is the only company actively pursuing the production of battery-grade lithium carbonate and lithium hydroxide from micas with a cost competitive processing technique. This gives LIT significant 'first mover' advantage, as does the exclusive nature of its extraction technology licenses.
Western Australia's lithium mica deposits remain LIT's exclusive domain, while the first of its global licenses has been allocated to the giant Cinovec deposit in the Czech Republic.
Meanwhile, LIT is assessing other projects worldwide and reviewing opportunities in Africa, Europe, the Americas and Australia.
Subsequent to quarter end, LIT has raised funding of $6.5m in 2 tranches with success in the attraction of its first institutional investor.
NORTH AMERICA
On 11 November 2015, LIT advised that the Company and TSX:V (AIX) listed company Alix Resources Corp (Alix) have executed a memorandum of understanding (MOU) to jointly to develop lithium extraction technologies applicable to advancing Alix’s lithium concessions (the Electra Project) covering 22,625 hectares in Sonora, Mexico (see Figure 1). The concessions held by AliX contain interpreted strike extensions of the Sonora Project, operated by Bacanora Minerals Ltd and Rare Earth Minerals Plc.
Figure 1 The Electra Project
AliX has advised that it has collected samples which contain lithium. These samples will be dispatched to the laboratories of Kappes Cassiday and Associates for metallurgical evaluation. That evaluation will be supervised by Lithium Australia under the terms of the agreement announced on 11 November 2015.
Initial testing will focus on:
characterizing the mineralogy of the clays;
identifying the lithium bearing phases; and
determining potential methods of beneficiating the material.
The evaluation will be extended to the testing of low-energy lithium recovery tests if warranted.
LIT and Alix share the view that a combination of low-grade material and the application of energy intensive processing systems have historically hindered lithium clay deposits from being commercialized. LIT has experience in processing similar materials successfully implementing low energy alternatives to extract lithium
from micas and has been successful in producing lithium carbonate from unconventional silicate feed material. It is thought that some of the materials previously tested by LIT may have similar mineral chemistry to some components of the mineralization at the Sonora Lithium Project which adjoins the Electra Project in Mexico.
LIT and Alix entered into the MOU to explore and collectively engage in potential joint business opportunities in the areas of:
(a) the exploration of lithium from Alix’s mineral concessions located in Sonora, Mexico; and (b) developing superior means of recovering lithium from these, and similar lithium clay deposits;
LIT and Alix will pursue entering into a definitive joint venture agreement within three months from the date of execution on the MOU.
Indicative Commercial Terms Alix will carry out initial geological assessment of geological samples of clays including hectorites (the "Samples") and deliver them to LIT or to a metallurgical laboratory nominated by LIT.
LIT will conduct the necessary activities to produce a report summarising the work completed and the potential business opportunity. If the report demonstrates business potential, LIT will then produce a commercial development proposal that summarises a high level road map for the exploitation of lithium, potassium and other metals from the Samples.
LIT will carry out bench scale laboratory testing and full chemical analysis of the Samples, and share all results with Alix. If warranted, LIT shall carry out small scale pilot testing and provide a detailed financial and metallurgical report to Alix. LIT shall investigate and develop solutions using the Samples. All of the work to be carried out by LIT above are collectively the "LIT's Works".
The rights and obligations of LIT and Alix with respect to the Concessions and the Intellectual Property thereafter shall be set out in the Definitive Agreement. Percentage interests and milestones may be modified as mutually agreed. The arrangement will be subject to mutual due diligence investigations and any required regulatory approvals.
On 23 December LIT advised that it had appointed Nevada based lithium specialist Kappes Cassiday & Associates (KCA) to commence scoping work on lithium clay deposits including the Electra Project and deposits in north-west of Western Australia.
Kappes, Cassiday & Associates specializes in the development, engineering and implementation of extractive metallurgical processes for the mining industry. Although KCA has become well known for expertise in gold/silver heap leaching, KCA staff of over 70 people includes more than 20 process engineers and 25 laboratory personnel who have a broad range of practical experience. This includes experience in acid leaching and recovery, flotation and gravity concentration, and development of complex hydrometallurgical flow sheets. KCA has particular expertise in the handling of lithium bearing clays and has maintained sustained laboratory and engineering programs with the goal of developing processing flowsheets designed to produce battery grade lithium products.
The concessions held by AliX contain interpreted strike extensions of the Sonora Project, operated by Rare Earth Minerals Plc and Bacanora Minerals Ltd. The mineralization within these deposits occurs as relatively flat lenses of lithium bearing clays within a sequence of volcanic rocks (Figure 2).
Figure 2 – The Electra Project showing diagrammatic cross section of the clays encountered within the geological sequence adjacent to the Electra prospect
EUROPE
Under the terms of the MoU announced in December 2014, the Company commenced intensive metallurgical test work on material from the European Metals Holdings Limited’s (ASX: EMH) 100% owned Cinovec project (ASX Release 16 Dec 2014). The Cinovec Project is located in the Czech Republic, 100km northwest of the capital, Prague, and close to the border with Germany (Figure 3).