Pilbara Minerals Ltd (ASX:PLS) has revealed a 36% increase in the lithium resource at its flagship Pilgangoora Lithium-Tantalum Project in Western Australia’s Pilbara region.
The updated resource now comprises a total of 213 million tonnes grading 1.32% lithium and 116 ppm tantalum, containing 2.82 million tonnes of lithium and 54.6 million pounds of tantalum.
The new resource estimate provides further support to an already compelling business case for the construction and development of the stage II, five million tonnes per annum (tpa) expansion.
@PilbaraMinerals 5mtpa Stage 2 expansion PFS released https://t.co/CMi1HDf8F7 pic.twitter.com/zqp7sWwSZF
— PilbaraMinerals (@PilbaraMinerals) February 13, 2018
The expansion is targeted to begin shortly after the commencement of first concentrate and the initial ramp-up of spodumene concentrate production from the stage I, two million tpa operation.
Pilbara managing director and chief executive officer Ken Brinsden said: “With the project now just weeks away from the start of Stage 1 production, we could not be better placed to take full advantage of burgeoning demand for lithium raw materials – which keeps surprising to the upside.
READ: Pilbara Minerals signs landmark offtake deal with South Korean conglomerate POSCO
The company recently executed a landmark agreement with multi-billion dollar South Korean conglomerate POSCO (KRX:005490).
Pilbara has signed a binding life-of-mine off-take deal with POSCO for an initial 80,000 tpa of chemical grade spodumene concentrate from the Pilgangoora stage II project.
This will increase to 240,000 tpa upon Pilbara’s joint venture participation in a downstream 30,000 tpa lithium carbonate/lithium hydroxide conversion plant in South Korea.
Importantly, the new off-take agreement further diversifies Pilbara Mineral’s concentrate sales, with up to 30% of its entire proposed production from stage I and II to be sold in the South Korean market.