Lithium Australia NL (ASX:LIT) has won its second grant, this time from the federal government to support the commercialisation of its Sileach™ lithium extraction process.
The $50,000 of funding will assist with laboratory scale optimisation carried out by its partner ANSTO Minerals.
The Sileach™ process is designed to recover lithium from silicates without the expensive roasting step.
Lithium Australia expects to start pilot plant trials for Sileach™ at the ANSTO Minerals facility in the coming weeks.
The upcoming initial pilot test work will provide key data in evaluating the commercial future and value of the Sileach™ process.
Adrian Griffin, managing director, commented:
“Lithium Australia’s Sileach™ process has the potential to catapult Australia into the forefront of the lithium battery boom by supplying optimal grade and purity material from low-energy production of lithium chemicals.”
Agreement with Pilbara Minerals
Lithium Australia made an agreement with Pilbara Minerals Ltd (ASX:PLS) who will supply spodumene concentrate for a pilot testing phase.
Subject to the success of pilot testing of concentrates, the parties have agreed to establish the Sileach Joint Venture (SJV) with the aim of developing a commercial Sileach™ processing plant.
Obligations of the parties as per the agreement are as follows:
Initial pilot tests at ANSTO Minerals:
- LIT will cover the capital cost of pilot testing;
- PLS will supply the required spodumene concentrates for testing; and
- Operating costs for the tests will be split 50/50.
Large-scale pilot testing:
- Plant designed to produce commercial lithium carbonate and recover by-products;
- LIT to cover capital cost of the plant;
- PLS to provide the spodumene concentrates; and
- Costs to be recovered as follows, firstly recovering capital costs; secondly recovering operating costs; and thirdly, paying PLS cost price for the spodumene concentrate.
Definitive feasibility study
Data generated from operating the large-scale pilot plant will be used for feasibility investigations into the construction of a full-scale commercial Sileach™ processing plant.
In the event of a positive outcome of the definitive feasibility study, the SJV will advance to commercial production, including finance and construction, on a 50/50 basis.
Next steps for Sileach™
The next steps on the timeline to commercialise the Sileach™ process are:
- Finalising construction of the pilot plant with ANSTO (Q3 2016);
- Operating the pilot plant (Q3-Q4 2016);
- Completing the study (Q4 2016); and
- Deciding whether to proceed to a continuous, site-based pilot plant (Q1 2017).
Lithium Australia portfolio
Lithium Australia now has projects in the following jurisdictions:
- Western Australia: The Gascoyne; Pilgangoora; Ravensthorpe; Seabrook; Lepidolite Hill;
Greenbushes; Lake Johnston; and Widgiemooltha projects;
- Northern Territory: Bynoe;
- Queensland: Cape York; and
- Mexico: A 25% interest in the Electra lithium project.
Within these projects the company has various corporate alliances and joint ventures with Pilbara Minerals Ltd (ASX:PLS), Focus Minerals Ltd (ASX:FML), Alix Resources Corp (CVE:AIX), Cazaly Resources Ltd (ASX:CAZ), Tungsten Mining NL (ASX:TGN) and Venus Metals Corporation Limited (ASX:VMC).
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