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Canada Lithium Corp. Advances Lithium Carbonate Metallurgical Process

Last updated: 22:37 06 Mar 2009 GMT, First published: 23:37 06 Mar 2009 GMT

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It is important to continue development efforts even in down markets the old adage says. That appears to be what exactly Canadian Venture listed Canada Lithium Corp (TSX.V: CLQ) is doing. The company has materially advanced its lithium carbonate metallurgical process and has recently produced lithium carbonate that is comparable to the battery market specifications that are widely accepted by the industry. Canada Lithium's product significantly exceeds specifications with respect to aluminum and iron which are considered deleterious.

The industry is not exactly straight forward as gold or base metals. However, if we highlight the diversity of Lithium applications readers would appreciate the investment case of CLQ. Lithium has the highest specific heat capacity of all solids and therefore is widely used in heat transfer applications. It is also an important ingredient in anode materials, used in lithium ion batteries due to its high electromechanical potential, light weight and high current density.

Demand for lithium is increasing from the current market of approximately 100,000 tonnes LiCO2 equivalent. Lithium ion batteries have become the rechargeable battery of choice and are now almost used exclusively in cell phone and computer batteries with items such as shavers, power tools, and hybrid and electric cars switching over from the nickel varieties. The benefits of lithium ion batteries include; higher energy density to weight ratio, longer life, and no memory effect. Auto makers have announced their plans to have lithium ion batteries in their hybrid cars in 2009 and 2010 thus underpinning the demand for LiCO2. For every one unit of lithium in a cell phone battery there are 7 in a computer battery, 3,000 in a hybrid car and 7,000 in an electric car; this is 9 to 30 kilograms of Li2O per battery.

This gives us a glimpse of true potential a company such CLQ offers to investors. CLQ is the 100% owner of the Quebec Lithium Project which is a large lithium spodumene deposit with excellent infrastructure and favourable metallurgy. Quebec Lithium was an underground mine, surface concentration plant and a refinery from 1955 to 1965 which produced 272,000 tonnes of ceramic grade and chemical grade spodumene concentrates, lithium carbonate, lithium hydroxide monohydrate as well as a small quantity of lithium chloride and feldspar. At the time of the suspension of mining operations the ore reserve was 15 million tonnes at a grade of 1.14 % Li2O calculated down to the 150m level.

CLQ is working with SGS Lakefield Research to complete metallurgical test-work for the production of spodumene concentrate, lithium carbonate as well as high grades and purities of lithium carbonate. Metallurgical processing test-work results completed to date have resulted in the production of a spodumene concentrate grading 7.17% Li2O with an 80% recovery. The high-grade spodumene concentrate achieved with an 80% recovery is a material improvement over the approximate 50% recovery achieved at Quebec Lithium's operations from 1955 to 1965 and will result in lower operating costs.

In conjunction with optimizing the metallurgical processing activity, the Company is evaluating project economics including capital and operating costs, as well as downstream market off-take and pricing. The most recent industry forecast for lithium demand is a four-fold increase for 2015 from the 2007 market demand of 100,000 tonnes of lithium carbonate equivalent (Li2CO3).

About Canada Lithium Corp.
Canadian Lithium Corp is acquiring and testing the economics of several spodumene pegmatite deposits in Canada. As well, the company has initiated lithium brine exploration in the Great Basin of the United States.

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