Infinity Lithium Corporation Ltd (ASX:INF) has unveiled a robust underground scoping study for the San José Lithium Project in Spain, the second-largest JORC-compliant hard rock lithium deposit in the European Union (EU).
The lithium project developer is considering plans for a fully integrated underground mining and downstream lithium hydroxide conversion plant in Europe, the world’s second-largest market for battery-grade lithium and one that is actively pursuing an integrated supply chain.
This new study comes after INF released its pre-feasibility study (PFS) in late August, paving the way for more discussions with in-country and European stakeholders who could stand to benefit from San José’s move into production.
In essence, the underground scoping study forecasts an average annual steady-state production rate of 195,000 tonnes of lithium carbonate equivalent (LCE) of battery-grade lithium hydroxide over 26 years.
Some of the key metrics from the San José scoping study.
Bringing “essential project” to fruition
Speaking to the scoping study, Infinity Lithium managing director Ryan Parkin said: “We are pleased to provide an alternative and viable option to bring this strategically essential project to fruition, which provides multiple benefits to the locality of Cáceres whilst meeting the broader critical requirement for battery-grade lithium chemicals in the EU.
“The integrated underground mine and lithium hydroxide scoping study builds on the extensive test-work that has recently resulted in the production of battery-grade lithium hydroxide and carbonate.
“The company looks forward to working with all stakeholders to deliver an exceptional outcome as we progress San José and provide an alternative resolution for local and regional government.”
Snapshot of San José
The San José scoping study considers a scenario that revolutionises what the lithium hub could look like in the years to come.
It focuses on underground-only mining and removes any considerations for an open-pit scenario to preserve the landform at San José.
Then, an on-site processing facility will make battery-grade lithium hydroxide from the project material.
Because of this, Infinity believes the production hub could generate more battery-grade lithium chemicals, as well as social, environmental and visual improvements.
Ultimately, this could help countries like Spain — and the broader European Union — meet the looming demand for battery-grade lithium to power the electric vehicle age.
Historically, San José supported underground tin mining until the late 1960s.
Various studies for the site have been completed since then, focusing on the extraction and processing of lithium-bearing mineralisation.
Recent scoping and pre-feasibility studies, completed by Infinity through the project joint venture since 2017, have shown the robust economic basis and processing routes amenable to the lithium mineralisation.
While Infinity is currently a 75% holder of the project, it has the option, at its election, to proceed to a 100% interest.
This scoping study is based on a 100% ownership basis.
Essentially, the scoping study outlines the mine’s ramp-up to full production over a 2-year period.
From there, it will operate at 2 million tonnes per annum for 22 years before it reduces based on current available resources to cease production after 26 years.
The mine plan delivers 47.7 million tonnes for a contained 145,700 tonnes of LCE to the processing plant.
Pre-production development on the underground mine is forecast to take two years to complete, while the ramp-up production period to process the beneficiated product is forecast to take another two years.
The road ahead
It’s still early days for the Spanish lithium hub, but Infinity has put together a roadmap to production.
Namely, test work, feasibility studies, offtake agreements and permitting have taken place over 2021 and will generally continue through to 2023.
Next year, work on the pilot plant will also commence, while Infinity will move towards a final investment decision in late 2022 or early 2023.
From there, construction will kick off in around 18 months’ time, with the asset to take shape in the following two-year period.
Commissioning should begin at the start of 2025 and take just under a year to complete, with production to kick off as early as the middle of the year.
Activity will ramp up through 2026.
