Bluebirds wrote: I've copied the Alix specific information below, but please take a look at today's full article:
https://www.nextminingboom.com/first-mover-lit-to-feed-insatiable-lithium-demand/?utm_campaign=LIT-UA5&utm_source=twitter.com&utm_medium=social&utm_content=20160309
Viva Mexico!
Those of you who have been following the LIT story with us would be familiar with the company’s move into Mexico – if not, you can refresh yourself in this article Tesla Strike Lithium Deal: To Source From Ground Directly Next to LIT?
Back in November LIT struck a MoU agreement with ALiX Resources to apply its tech to lithium clays within its Sonora project, but last month it managed to turn the MOU into a fully-fledged joint venture.
Those of you following the lithium story closely would be familiar with the name ‘Sonora’.
It’s the project at the centre of a massive deal struck in recent times between the project proponents and electric car behemoth Tesla.
Both Rare Earth Minerals and Bacanora Minerals signed a conditional supply deal with Tesla to supply lithium hydroxide from the project to Tesla’s gigafactory to the north in Nevada.
It was widely read as the starting gun on end lithium ion battery manufacturers starting to deal with raw material suppliers such as REM and Baconora (and LIT).
You’ll notice from the map above that the resource at Bacanora’s deposit is thought to run through to ALiX’s property.
The reason LIT was brought into the equation was that it is now seen as somewhat of a world leader in applying its tech to bring low grade material up to snuff.
ALiX’s deposit is thought to contain a low-grade clay lithium deposit.
Remember that LIT has experience in bringing low-grade micas up to a saleable grade, but not necessarily clays…
If LIT is able to bring ALiX’s clay to an end-product grade, it opens up a raft of upstream opportunities.
You can imagine resources companies the world over, sitting on low-grade clays, simply frustrated that the pricing support isn’t there to mine the clays.
Enter the canny Australian company which has solved the riddle, effectively taking low-value clay to a high value product…
LIT has been working towards something here – and Sonora project is key to it all.
As you can see on the right, the Sonora project is shaping as one of the world’s largest.
Now, the projects to the right – the big boys – have a few things in common.
The chief among them is that they’re clay and mica deposits.
Given LIT’s new processing process, LIT could turn both into high-value lithium hydroxide.
The message here is clear – if LIT is successful in Mexico, then there’s absolutely no reason why it can’t unlock the potential of other projects in that wheelhouse.
Just imagine all the gargantuan projects which are on the backburner because processing micas and clay is considered uneconomic…
Enter KCA
Key to LIT’s clay dreams will be a partnership with Nevada-based lithium specialist Kappes Cassiday & Associates (KCA).
While LIT works on the conversion of the clay to a higher-value proposition, KCA will be working on the scoping study to bring the whole thing together.
Having the ability to bring the clay up to grade is one thing, but doing it in the most cost-effective process possible is another.
Having that scoping work under the belt from a well-respected Nevada-based consultancy smacks of another game altogether for us…
While Tesla has done a conditional deal at Sonora, it’s merely a conditional deal and does not cover all the lithium hydroxide Tesla will need.
Founder Elon Musk has also been pretty vocal about this only being the start of the deals, saying the Sonora deal is not set in stone and in any case, Tesla will need more.
Enter LIT which is now putting together a game plan to be able to supply both lithium carbonate and lithium hydroxide at an end price which may be cheaper than the likes of REM and Bacanora can provide.
Having a scoping study behind the work may convince Tesla that LIT’s plan isn’t all bluster.
And with its MoU with ALiX progressing to farm-in and JV stage, this gives LIT up to 65% of the product.
That’s no bluster at all.
The good news for LIT is that being involved in a project which supplied one of the largest company’s in the world puts you in the headlights, and perhaps the shop window…