How Much Lithium Resource Does Arizona Lithium Prairie Project Now Have?
Arizona Lithium Limited
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How Much Lithium Resource Does Arizona Lithium Prairie Project Now Have?

Arizona Lithium's Strategic Advancements in Lithium Exploration and Development

Arizona Lithium Limited (ASX: AZL), a key player in the lithium industry, has recently announced significant progress in its exploration and development activities, particularly at the Prairie Lithium Project in Saskatchewan, Canada. This progress includes a substantial increase in resource size, promising pilot plant results, and strategic land acquisitions.

Prairie Lithium Project Expansion: Increased Lithium Resource

Arizona Lithium announced a new resource estimate for the Prairie Project, totaling 6. 3 million tonnes of Lithium Carbonate Equivalent (LCE), comprising 4. 5 million tonnes LCE Indicated and 1. 8 million tonnes LCE Inferred. This resource upgrade, resulting from the assessment of newly leased land, represents a 9-year supply based on 2022 global LCE consumption.

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Expansion of Landholding

The company expanded its landholding for the Prairie Project by 11%, acquiring an additional 39,331 net acres. This expansion strategically encompasses areas surrounding and within Prairie’s existing land, potentially enhancing future production economics.

Prairie Project Preliminary Feasibility Study (PFS): Confirming Low Operating Costs

Arizona Lithium's PFS for the Prairie Project, led by global engineering group Samuel Engineering, indicates that the project is one of the lowest cost global lithium projects, with an average annual operating cost of US$2,819 per tonne. The PFS forecasts a base case pre-tax Net Present Value (NPV) of US$448 million and an Internal Rate of Return (IRR) of 23. 9%.

Long-term Production Potential

The PFS is based on an initial production phase of 6,000 tonnes per annum (tpa) of LCE, with the project's 20-year commercial operating life constituting less than 3% of the Indicated Resource, suggesting significant long-term potential.

Pilot Plant Success and Lithium Processing Innovations: High Lithium Recovery Rates

Arizona Lithium reported outstanding results from its Pilot Plant in Saskatchewan, achieving a steady-state of 95. 6% lithium extraction with an impressive 99. 9% rejection rate of impurities. These results are expected to impact downstream processing positively, reducing costs and improving product quality.

Conversion to High-Purity Battery Chemicals

The company's Chief Technical Officer, Brett Rabe, successfully converted lithium precursors to high-purity battery chemicals, including over 99% lithium carbonate, using Direct Lithium Extraction (DLE) and Cross Flow Reverse Osmosis (CFRO) technology.

Focus on Rapid Commercialization

With these advancements, Arizona Lithium aims to rapidly progress the Prairie Lithium Project into production, leveraging new design and production philosophies.

Capital Raise and Future Drilling Plans: Funding for Further Exploration

In December, Arizona Lithium completed a successful capital raise of $16. 5 million through a Flow Through Financing Placement. The funds will be applied to drilling in 2024 at the Prairie Project, targeting the Dawson Bay and Souris River Formations.

Preparing for Production in 2025

Following the capital raise, Arizona Lithium is poised to complete wells and move into production in the first half of 2025, as outlined in the PFS.

Arizona Lithium’s strategic advancements in the Prairie Lithium Project mark a significant milestone in the company's journey. The increase in resource size, successful pilot plant results, and strategic land acquisitions position the company to capitalize on the burgeoning demand for lithium, essential for the electric vehicle and battery market.

As Arizona Lithium continues to progress towards production, its low operating costs and innovative processing technologies set the stage for becoming a significant player in the global lithium industry.

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