Lithium Australia NL (ASX:LIT) has developed a long-term strategy for the establishment of a lithium processing hub in Western Australia.
The initial location preference is Port Hedland given the proximity to infrastructure and the Pilgangoora lithium region.
LIT recently announced funding initiatives with Federal Government Business Innovation Grant and Minerals Research Institute of Western Australia (MRIWA) - important parts of the strategy to commercialise LIT’s Sileach™ process.
LIT's managing director, Adrian Griffin commented: “LIT’s point of difference with all other lithium companies is the ability to recover lithium from spodumene without the requirement for the extraordinary expense of roasting.
The company’s proprietary Sileach™ process has the flexibility to process any lithium bearing silicates. If our application is successful, the MRIWA grant will enable the commercialization of the Sileach™ process to be accelerated through to large-scale piloting.”
Background
Lithium Australia is a lithium technology company with projects in Western Australia, Northern Territory, Czech Republic and Mexico.
Sileach™ is a market leading metal extraction technology owned by Lithium Australia.
The Sileach™ process is designed to recover lithium from silicates without the expensive roasting step that has long been the main stay of the lithium recovery process.
In March, the company began to fast track pilot plant testing of the Coolgardie lithium deposit using the Sileach™ process.
MRIWA partner
Given the State Government based nature of the MRIWA funding, LIT has been seeking local support for the studies to advance and promote Port Hedland, Pilgangoora and Western Australia.
Venus Metals Corporation Ltd (ASX:VMC) has agreed to be a joint founding partner with LIT in the application to MRIWA for co-investment in this ground breaking study.
Whilst the Business Innovation Grant has been approved, the MRIWA grant remains subject to approval.
LIT has participated and subscribed to ordinary fully paid shares in the VMC recent private placement at $0.25 per share.
LIT and VMC has commenced a desktop study and is planning a reconnaissance field trip to Pilgangoora tenements.
Lithium battery conference
IDC Technologies will host the Lithium Battery Conference in Sydney, Australia on 24-25 May, 2016.
LIT will present their views on critical issues in supply chain for battery raw materials and detail how the Sileach™ process provides a low-cost alternative to the conventional processing of spodumene, the hard rock feed material for the lithium chemical industry.
Sileach™ also provides the ability to bypass third parties and supply directly from the mine site to the end user in the battery industry.
Analysis
LIT's share price continues to perform strongly, trading currently at $0.27, an increase of circa 60% over the past three months.
With exploration ongoing at multiple projects, pilot testing of the Sileach™ process and involvement in industry activities such as this processing hub and conferences there are multiple avenues for news flow.
The company is positioned well within a strong lithium market developing both a processing technology that is potentially applicable on a global scale and a growing portfolio of lithium projects.
The proposed processing hub at Port Hedland has already attracted Venus Metals Corp and if the application to MRIWA for co-investment in the study is successful, provides a significant point of difference for LIT to its peers.
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