Global Geoscience Ltd (ASX:GSC) has progressed a pre-feasibility study at its Rhyolite Ridge Lithium-Boron Project in Nevada, USA, confirming the deposit can support a mine life of at least 30 years.
The study has also demonstrated the potential for higher cashflow in the early years of mining by targeting mineralisation with higher lithium grades.
Rhyolite Ridge’s mineral resource is open to the north, south and west, and is expected to grow with additional drilling.
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Global Geoscience managing director Bernard Rowe said the PFS showed that the indicated resource could support a 3-4 million tonne per annum operation, based on the current lithium-boron indicated resource at South Basin deposit.
He said: “Drilling has commenced at the southern limits of the resource area and we have two diamond drill rigs operating 24 hours/day.
“The initial program is expected to result in additional measured and indicated resources immediately adjacent to the proposed start-up pit.
“The PFS is on track for completion and release in Q3 2018 and any additional resource defined by the drilling program will be included in the mine plan after release of the PFS.
“The Rhyolite Ridge PFS is expected to demonstrate the strong economics of developing Rhyolite Ridge into a major, low-cost, near-term producer of lithium carbonate and boric acid.”
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Global Geoscience anticipates the proposed mining operation will produce around 20-30,000 tonnes of lithium carbonate and 160-220,000 tonnes of boric acid per annum over the projected mine life.
Production rates are based on the indicated resource and indicative overall recoveries of 75-80% for lithium and boron, based on metallurgical test work undertaken by Global Geoscience.
Rhyolite Ridge is a large, shallow lithium-boron deposit close to existing infrastructure.
Global Geoscience aims to develop the Rhyolite Ridge Lithium-Boron Project into a strategic, long-life, low-cost supplier of lithium and boron products.