AustraliaNL
ASX ANNOUNCEMENT 31 October 2016
COMPANY DETAILS
LITHIUM AUSTRALIA NL ABN: 29 126 129 413 ASX CODE: LIT & LITCE
PRINCIPAL AND REGISTERED OFFICE
Level 1
675 Murray Street West Perth WA 6005
P +61 8 6145 0288
F +61 8 9475 0847
POSTAL ADDRESS
PO Box 1088
West Perth WA 6872
CORPORATE INFORMATION
(31 October 2016) 243M Ordinary Shares
133M Listed Partly Paid Shares 21M Unlisted Options
11M Performance Rights
BOARD OF DIRECTORS
George Bauk
(Non-Executive Chairman)
Adrian Griffin
(Managing Director)
Bryan Dixon
(Non-Executive Director)
For further information contact:
Lithium Australia NL Adrian Griffin (MD)
Tel: +61 (08) 6145 0288
Email: [email protected] Web: www.lithium-au.com
LITHIUM AUSTRALIA QUARTERLY REPORT FOR SEPTEMBER 2016 DISRUPTIVE LITHIUM CHEMICAL PRODUCTION TO FUEL THE NEW INDUSTRIAL REVOLUTION
Report for the quarter ending 30 SEPTEMBER 2016
HIGHLIGHTS
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LIT advised a discovery in the Electra Joint Venture in Sonora Mexico with Alix Resources Inc (TSVX: AIX) including advising an intention to increase its interest to 49%
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LIT doubled its footprint in WA's Greenbushes and commenced exploration there - the world's most productive hard-rock lithium province
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LIT acquired the Widgiemooltha Project lithium rights with Cazaly Resources Ltd (ASX: CAZ) through the Goldfields Lithium Alliance (GLiA)
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LIT and ANSTO Minerals completed its pilot plant test on ore from Lepidolite Hill with WA Government support and Federal Government support; results pending
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LIT expands its strategic lithium holdings in WA's Gascoyne
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LIT in maiden move into Queensland as part of an enlarged Australia-wide lithium search
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LIT shareholders to benefit from MetalsTech IPO (formerly LiGeneration)
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LIT advised first Board appointments for Graphite Australia NL and tenure granted on two exploration licences
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LIT completes 5 cent contributing shares and lists the 25 cent contributing shares series
SUBSEQUENT EVENTS
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LIT advised exceptional results in continuous Sileach™ pilot plant
run
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LIT and Lefroy Exploration Ltd (ASX: LEX) complete strategic consolidation of Lake Johnston lithium pegmatite field and discovers lithium pegmatites with rock chip samples up to 3.94% Li2O
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LIT launches Shareholder Purchase Plan to raise up to $12.5m
MEDIA CONTACT:
Adrian Griffin Lithium Australia NL 08 6145 0288 | 0418 927 658
Kevin Skinner Field Public Relations 08 8234 9555 | 0414 822 631
1
SUMMARY
Lithium Australia (ASX: LIT) has been successful in developing its own unique hydrometallurgical process, the Sileach™ process which allows lithium to be extracted from spodumene without roasting. This is seen by industry and end users as a significant breakthrough. LIT continues to assess lithium projects worldwide and is actively reviewing opportunities in Africa, Europe, the Americas and Australia.
THE SILEACH™ PROCESS: A PROCESSING BREAKTHROUGH
LIT has successfully developed a unique hydrometallurgical process, the Sileach™ process, for the recovery of lithium from spodumene, currently the primary source of hard-rock lithium production. The Sileach™ process is also readily adaptable to other silicate minerals and has been developed to reduce the cost of producing lithium chemicals from materials that have traditionally been roasted to recover the lithium, with very high energy costs.
Independent laboratory tests of the Sileach™ process have achieved lithium extractions from alpha spodumene of up to 92% in 4 hours.
Lithium Australia continues to differentiate itself in the lithium space through developing the Sileach™ process technology to convert concentrate to carbonate or other customer specified lithium chemicals, target feedstock for the Sileach™ process. Being a key player in the future of the lithium chemical supply chain is not just about producing a concentrate, it is about delivering to the customer what they want which is a lithium chemical product at a low cost. Technology is the key to the success which LIT is developing through its Sileach™ technology.
Figure 1 Sileach continuous pilot plant operation, ANSTO Minerals, Lucas Heights, NSW
THE OPPORTUNITY
The Sileach™ process has the potential to release the value of stranded lithium silicate deposits - those deposits quarantined by sub-economic grades.
The Sileach™ process has the ability to transform low-grade spodumene occurrences into viable ore as, due to lower projected operating costs, it is less sensitive to feed grade. This will result in lower cut-off grades for resource calculations, expansion of existing resources without the requirement for further drilling, and greater recovery of metal inventories.
As the lithium is precipitated from solution in the Sileach™ process, all impurities in lithium silicate feed can be rejected during the production of lithium chemicals. Contaminated or low-grade spodumene concentrates, and other silicates, in which impurity concentrations would otherwise render them unmarketable, may now be considered viable process feed.
PROJECT SPECIFICS
THE PILBARA, WESTERN AUSTRALIA
Of significance is the agreement with Pilbara Minerals Ltd to jointly progress the Sileach™ technology for potential future production of low-cost lithium carbonate in the currently proposed WA processing hub. This may include low-grade spodumene, micas and clays, which in the past may have been sub economic. All of these materials can be processed with the Sileach™ process.
Comment: There are difficulties in obtaining spodumene supplies in Australia. LIT cannot stress highly enough the importance of obtaining a reliable Australian supply of good quality spodumene. LIT notes recent commercial settlement between PLS and Mineral Resources Ltd (ASX: MIN) (see PLS releases dated 26 October 2016). This settlement highlights the increased valuations placed on lithium assets and currently indicates a robust future for this burgeoning industry.
THE YILGARN BLOCK, WESTERN AUSTRALIA
Figure 2 Lithium Australia's Yilgarn Block Projects
SEABROOK RARE METALS VENTURE (LIT 80%, Tungsten Mining (ASX: TGN) 20%)
Laser-induced breakdown spectroscopy (LIBS), a field-portable assay technology was used to compare geochemical indicators (alkali metals) for lithium, with LIBS determined lithium concentrations in soil samples. Results of the program are yet to be released.
GREENBUSHES - A premium address (LIT 80%)
In recent times, there has been significant interest rekindled in the Greenbushes, Western Australia, with many junior explorers attracted by the obvious exploration potential of the area which currently produces about 40% of the world's lithium from just one mining operation.
The Greenbushes pegmatite is probably not alone and the large number of pegmatites in the area provides significant scope for renewed exploration activities.
Despite being an active mining area since the 1880s, there remains great exploration potential in the region. Much of the prior exploration work was focused on tin and tantalum but today a new wave of exploration tools paves the way for applying advanced techniques to the exploration for lithium.
LIT commenced work with low-impact exploration. Immediate evaluation will include remote sensing, field mapping and real time lithium assays using) a real-time, field portable exploration technique that provides assay capability for light elements, including lithium.
Field reconnaissance commenced in April 2016 (ASX Release dated 27 April 2016) and LIT doubled its footprint in the area as advised via an ASX Release dated 6 July 2016.
Figure 3 Location of LIT's granted exploration licence and further licence applications