Lithium Australia advances Sileach technology at Lepidolite Hill

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THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) announced it has advanced the Program of Works (PoW) for the extraction of a trial sample for pilot testing of lithium micas from the Lepidolite Hill project in Western Australia.

The company said the testing will advance its 100 per cent-owned Sileach process towards commercialisation with pilot testing of the process to be undertaken in an independent laboratory.

Lithium Australia said the program will not only advance the Sileach process development, but also the Coolgardie Rare Metals Venture, which it established with Focus Minerals (ASX: FML) in September 2014.

LIT developed the Sileach process as an alternative to roasting silicates for the recovery of lithium.

The company claims the process is:

Energy efficient;
Undertaken at atmospheric pressure; and
Very versatile (applicable to all silicates).

LIT believes the Sileach process offers a real alternative for hard rock lithium producers, in particular those producing spodumene as it can produce lithium carbonate, hydroxide, or higher-level lithium chemicals.

When integrated with primary hard-rock lithium production, the application of the Sileach process will provide the opportunity for lithium producers to bypass third party refiners, which are presently the bottleneck in the lithium production chain.

To provide the first plant feed LIT will recover high-grade ore from Lepidolite Hill, near Coolgardie where the Western Australian Department of Mines and Petroleum has approved the PoW to recover up to 1,500 tonnes of Lepidolite ore.

LIT has entered into discussions with mining contractor to recover the test parcels.

“LIT is full steam ahead in establishing its pilot plant run to advance its 100 per cent-owned Sileach process,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“LIT is preparing feed from a number of sources in Australia, Europe and North America for testing, and has selected an independent laboratory to ensure the production of unbiased results.”

Email: info@lithium-au.com

Website: www.lithium-au.com

Pilbara Minerals cock-a-hoop with Pilgangoora PFS results

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THE BOURSE WHISPERER: Pilbara Minerals (ASX: PLS) announced results of a Pre-Feasibility Study completed on the company’s 100 per cent-owned Pilgangoora lithium-tantalite project in Wester Australia.

The PFS has outlined a robust development with low operating costs and includes an initial maiden Ore Reserve for Pilgangoora of 29.5 million tonnes at 1.31 per cent lithium oxide, 134ppm tantalum and 1.18 per cent iron oxide, underpinning a two million tonnes per annum standalone mining and processing operation over an initial 15-year mine life.

Key financial parameters of the project include forecast pre-production capital expenditure of ±$184 million (including mine pre-strip, two million tonnes per annum concentrator and all surface infrastructure) and, projected annual average EBITDA of $103 million per annum based on forecast life-of-mine (LOM) pricing, generating a forecast project Net Present Value (NPV10%, post-tax) of $407 million and IRR of 44 per cent.

“This is an outstanding result for the company, with the PFS clearly showing that Pilgangoora is a robust, long-life project based on a world-class resource,” Pilbara Minerals CEO Ken Brinsden said in the company’s announcement to the Australian Securities Exchange.

“The strong technical fundamentals and excellent financial returns of the project are underpinned by a relatively modest capital cost estimate together with low forecast cash operating costs, which reflects the inclusion of significant tantalite by-product credits.

“This means that the project will be capable of generating very strong operating margins and cash flows, producing a high-quality product that we expect will be in high demand as evidenced by the very high level of interest already displayed by our customer base.

“Based on these results, Pilgangoora is now firmly established as the world’s leading lithium development project – a premier mid-tier mining asset which is already attracting strong interest from prospective project financiers and cornerstone investors based on its potential to transform Pilbara into a leading player in the rapidly growing lithium industry.

“While the PFS – which is an interim document designed to assist us with ongoing financing and offtake discussions while we complete the DFS – is based on an initial mine life of 15 years, we are confident that the mine life will be further extended with additional drilling of the current Inferred Resource base as well as exploration drilling outside of the known Resource envelope.

“Drilling has already commenced and any additions to the resource inventory will be incorporated into the ongoing Definitive Feasibility Study, further enhancing the key financial outcomes of the project.

“We will now focus on the completion of the Definitive Feasibility Study by quarter three of this year, with the overall aim of commencing commissioning at the Pilgangoora project during quarter four 2017.”

FMG-Vale MoU sends media into a spin

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THE BOURSE WHISPERER: Fortescue Metals Group (ASX: FMG) sent the fourth estate into a whirl with news it had signed a non-binding Memorandum of Understanding with Brazilian multinational diversified metals and mining company Vale S.A.

FMG didn’t really let much slip about the MoU, except to say the two companies have agreed to pursue long term opportunities to create additional value for customers in the Chinese steel industry while enhancing the competitiveness of their operations.

The agreement proposes Vale and FMG striking up a number of Joint Ventures with the aim of blending selected volumes of iron ore from both companies to create a product attractive to the needs of the long term needs of their customers and improve the efficiency of the supply chain to the steel industry.

“The Memorandum of Understanding will allow us to work together to deliver long term value to our customers, through the efficient supply of an attractive and competitive new iron ore blend in China,” Fortescue Metals Group CEO Nev Power said in the company’s announcement to the Australian Securities Exchange.

The sentence that started journos salivating, however, was the one that stated the agreement would provide a framework for potential investment by Vale in Fortescue through a minority acquisition of shares on market and/or investment in current or future mining assets.

The speculation was rife as to what – in terms of how big an investment – that all meant.

FMG sought to hose everybody down with a later release acknowledging that some media reports claiming Vale may buy up to 15 per cent of Fortescue’s capital on-market and potentially invest in its existing and prospective mines.

Fortescue clarified what it hadn’t mentioned in its earlier release – that the MoU contemplates an acquisition of its listed shares of between 5 per cent and 15 per cent as agreed between the parties.

Fortescue reminded everybody who is in charge by reminding all involved that it, “is aware of its continuous disclosure obligations to the ASX and the ongoing commitment to update the market, if and when, there are matters to disclose.”

So there.

Email: fmgl@fmgl.com.au

Website: www.fmgl.com.au

Australian Vanadium signs MoU with GILDEMEISTER energy storage GmbH

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THE BOURSE WHISPERER: Australian Vanadium (ASX: AVL) has signed a Memorandum Of Understanding (MoU) with GILDEMEISTER energy storage GmbH for the purpose of collaborating on future Vanadium Redox Flow Battery (VRFB) installations and electrolyte production in Australia.

GILDEMEISTER manufactures the CellCube vanadium flow energy storage system, of which it has installed more than 100 systems to lay claim of being the provider of the world’s most commercially advanced flow battery.

“The future of vanadium demand is strongly tied to the global need for large-scale energy storage,” Australian Vanadium chief executive Vincent Algar said in the company’s announcement to the Australian Securities Exchange.

“The enormous potential and suitability of the Australian energy market for storage systems like the CellCube, coupled with local vanadium supply, offer benefits for GILDEMEISTER, AVL and consumers alike.

“We look forward to actively working on aspects of the GILDEMEISTER MoU during 2016.”

Australian Vanadium said the MoU was a representation of the company’s continuing commitment to advancing vanadium flow battery technology and the wider uses of vanadium in energy storage.

AVL said working with GILDEMEISTER would become a key part of its vertical integration strategy, which involves the production of high-purity vanadium electrolyte – a core component of flow batteries.

The company indicated it will focus on bringing this development into the progression of its Gabanintha vanadium project in Western Australia.

AVL claims Gabanintha to currently be one of the highest-grade projects being advanced globally with Measured, Indicated and Inferred Resources of 91.4 million tonnes at 0.82 per cent vanadium oxide (V2O5).

It also contains a discrete high-grade zone of 56.8 million tonnes at one per cent V2O5 reported in compliance with the JORC Code 2012.

Email: info@australianvanadium.com.au

Website: www.australianvanadium.com.au

Altura Mining signs Letter of Intent with Chinese lithium specialists

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THE BOURSE WHISPERER: Altura Mining (ASX: AJM) has entered into a non-binding Letter of Intent (LOI) with China based group, Lionergy Limited for offtake for a minimum of 100,000 tonnes per annum and up to 150,000tpa of lithium spodumene concentrate to be produced from the company’s 100 per cent-owned Pilgangoora lithium project.

Lionergy will also be buying a parcel of shares in Altura by way of a $3 million placement at 8.1 cents per share.

“The placement to Lionergy demonstrates the confidence level shown in Altura and its flagship Pilgangoora lithium project,” Altura Mining said in the company’s ASX announcement.

“Both parties are working towards further developing the relationship and conducting a China marketing program this week to showcase the project potential to downstream lithium carbonate processors.”

Lionergy is a China-based company specialized in the Lithium industry, which has interests in spodumene exploration, spodumene mine development, spodumene concentrate sales and distribution.

The two companies have also agreed to start discussions regarding possible investment and other project funding opportunities by Lionergy and its associates in the Pilgangoora lithium project, for the purpose of expediting the construction of the mine and processing plant.

Email: cosec@alturamining.com

Website: www.alturamining.com

Lithium Australia announces new breakthrough technology

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THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) announced the development of a new hydrometallurgical process for the recovery of lithium from spodumene, which is currently the primary source of hard-rock lithium production.

Known as the Sileach process, LIT claims it will be 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, with very high energy costs, to recover the lithium.

The company said independent laboratory tests of the Sileach process have achieved lithium extractions, from alpha spodumene, of up to 92 per cent in four hours.

According to LIT the Sileach process has the potential to release value from stranded lithium silicate deposits, or deposits otherwise quarantined by sub-economic grades.

The Sileach process can 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.

Spodumene, and other silicates, in which impurity concentrations would otherwise render them unmarketable, can now be considered viable process feed.

“The Sileach process is potentially to the lithium industry what froth flotation is to the base metals industry,” Lithium Australia managing director Adrian Griffin explained in the company’s announcement to the Australian Securities Exchange.

“In the early 1900s three out of every four tonnes of ore unearthed from Broken Hill went to waste dumps because the lead could not be separated from the zinc.

“The massive dumps would have entombed the mines heralding the end of production, had it not been for the advent of froth flotation.

“Hard-rock lithium faces a similar dilemma with energy intensive processes dictating what can and can’t be economically processed.

“Only high-grade spodumene concentrates, are viable under such conditions.

“The low-grade materials, be they spodumene or mica, have, in the past, been destined for the waste dumps.

“The Sileach process can change that by producing a cost-effective means of processing lower grade, or hitherto difficult to treat materials.

“The Sileach process will not only provide a commercial opportunity for newly mined materials, but will also unlock the value of lithium minerals discarded in the past.

“There is no shortage of lithium deposits or concentrating plants in the world but there is a massive shortage of lithium carbonate and hydroxide plants and Lithium Australia is focused on filling that gap with its leading edge environmentally friendly processing technologies.”

Email: info@lithium-au.com

Website: www.lithium-au.com

Lithium Australia expands Pilgangoora footprint with Venus Metals MoU

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THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) and Venus Metals Corporation (ASX: VMC) have executed a Memorandum of Understanding (MoU) to initially test the commercial lithium potential of Venus’ holdings in the Pilbara region of Western Australia.

The MoU will focus on Venus’ Pilgangoora project, southeast of Port Hedland with a broad objective to determine whether potential exists for sufficient feedstock to feed a Pilbara lithium processing facility to produce high-grade lithium carbonate and/or hydroxide for use in advanced hi-tech applications including lithium ion batteries.

Under the terms of the MoU, Lithium Australia will pay a fee for exclusive access to the Venus ground and will sole fund exploration over the project tenements in the first year following tenement grant.

Venus will retain 100 per cent ownership of its Pilgangoora tenements.

Test work to be carried out by Lithium Australia will include field inspections, data and observations across the project area and in the laboratory to confirm the suitability of the lithium mica, spodumene and clay materials within the MOU area as a source for battery grade lithium carbonate and lithium hydroxide.

“We have been established in the Pilbara area for a long time, having maintained a similar ongoing program with Pilbara Minerals since 2014,” Lithium Australia managing director Adrian Griffin said in a joint announcement to the Australian Securities Exchange.

“Our past work has uncovered previously unrecognised lithium potential there and our modelling strongly suggests the potential for further lithium occurrences on the Venus Metals ground.

“This comes on the back of recent discoveries by Lithium Australia of abundant lithium mica at Ravensthorpe on WA’s southern coastline.

“The potential of the Pilgangoora hot spot is enormous as can be seen by the success of Pilbara Minerals in establishing there a world-class spodumene inventory.

“We believe a combination of access to feedstock, and the development of processing technologies, may well be the convergence required for establishing a lithium chemical industry in the Pilbara, and to feed the world’s emerging battery factories.

“We are keen to work with Venus Metals which has recognised the potential benefits of Lithium Australia’s value-adding strategy; and has established a significant footprint in and around the Pilgangoora.”

Email: info@lithium-au.com

Website: www.lithium-au.com

Stavely Minerals acquires North Queensland gold play

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THE BOURSE WHISPERER: Stavely Minerals (ASX: SVY) has added a prospective new gold-copper project in North Queensland to its project portfolio.

The company said the Ravenswood West project Exploration Permit Application (EPM) 26041, located near the historical mining centre of Charters Towers and the multi-million ounce Ravenswood goldfield in North Queensland, was complementary to the its existing porphyry copper and gold projects in Western Victoria.

The new Ravenswood West project covers an area of 241 square kilometres approximately 5km south-west of the town of Ravenswood.

Exploration work already completed at the Ravenswood West project has provided encouraging rock chip results assaying up to 49 per cent copper, 0.24 grams per tonne gold, 0.21 per cent molybdenum and 1,793g/t silver.

“At Ravenswood, Stavely has acquired an orogenic and intrusive related gold and porphyry base metals and gold project with outstanding exploration potential,” Stavely Minerals managing director Chris Cairns said in the company’s announcement to the Australian Securities Exchange.

“It is located in a proven mineral district which has seen very little modern exploration, and offers the opportunity to target large mineralised systems at moderate depth.

“Plus, the rare earths potential is a genuine opportunity.”

Stavely Minerals has agreed to acquire Ukalunda Pty Ltd, the applicant of EPM26041 for the bargain purchase cost of just $2.

The competitive nature of the purchase is due to the fact Ukalunda was established in 2007 by Stavely Minerals directors Chris Cairns and Peter Ironside with the specific purpose of opportunistically applying for exploration permits in north Queensland.

Email: info@stavely.com.au

Website: www.stavley.com.au

Altura Mining receives good news from Pilgangoora PFS

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THE BOURSE WHISPERER: Altura Mining (ASX: AJM) has received results of a Mining Preliminary Feasibility Study carried out on the company’s Pilgangoora lithium project, located south of Port Hedland in Western Australia.

The study was completed by Western Australian-based mining consultants Orelogy Consulting, which has now been commissioned to further develop the scope of the current study to Definitive Feasibility level with completion anticipated at the end of March 2016.

The Base Case of the Study focussed on production of 150,000 tonnes per annum of spodumene concentrate via processing of one million tonnes per annum ore feed, the results of which determined:

LOM Revenue of $1,350 million;

LOM Cashflow of $609 million;

NPV of $277 million and IRR of 42.5% (8% discount rate);

18.92 million tonnes of total ore feed; and

2.886 million tonnes of spodumene concentrate production.

Altura explained that initial marketing indications demonstrated sales of spodumene concentrate in excess of the Base Case could be achievable, so an increased production case of two million tonnes per annum was also evaluated, which determined:

LOM Cashflow of $623 million; and

NPV of $392 million and IRR of 60% (8% discount rate).

“The results of the revised schedule confirm that the Pilgangoora project can support a higher production rate if market contracts for the spodumene product are secured,” Altura Mining said in its ASX announcement.

The Study also delivered an increased resource estimate using the breakeven cut-off grade of 0.4 per cent lithium oxide, bringing an upgraded mineral resource estimate of 35.7 million tonnes, a 37 per cent increase on the company’s previous estimate of 26.1 million tonnes.

“The results from the Mining Study are extremely pleasing and once again confirm the significant potential of the project,” Altura said.

“The company will continue to direct substantial resources to the project in line with its objective for fast tracking the development.”

Email: cosec@alturamining.com

Website: www.alturamining.com

Metalicity applies for more WA lithium land

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THE BOURSE WHISPERER: Metalicity (ASX: MCT) announced the lodging of a further seven exploration licence applications (ELAs) in Western Australia, across four project areas the company considers to be prospective for lithium, tantalum and tin mineralisation.

As with its previous applications, these projects have been generated from the company’s in-house exploration targeting model.

The Mundine Well application (E45/4698) is located approximately 75 kilometres south of the Pilgangoora lithium deposits pf Pilbara Minerals (ASX: PLS), in the Pilbara region of WA.

According to Metalicty, the Mundine Well prospect contains known occurrences of rare metals including tantalum and is hosted in a similar geological setting to the Pilgangoora deposits.

The East Strelley application (E45/4695) is located approximately 25km north east of the Strelley tantalum deposit, owned by Global Advanced Metals.

Metalicity’s application covers extensions to the host geological sequences for both the Strelley and Tabba Tabba tantalum deposits, the latter currently being mined by Pilbara Minerals.

The Katterup (E70/4816) and Yornup (E70/4817) applications are located in the Greenbushes region of southern WA and cover the same fault, and a similar geological setting, to the Greenbushes lithium deposit, which hosts the world’s largest resource of hard rock lithium (spodumene), owned and operated by Talison Lithium.

The Nanutarra application (E08/2820) is centred on the locality of Nanutarra, in the Pilbara region and is reported to contain rare metals occurrences including lithium occurrences, noted in the government database.

The Yalgoo applications (E59/2170 and E59/2171) are located to the south and west of the Johnsen Well pegmatites, known to contain lithium bearing minerals.

“The company intends to explore the new project areas for outcropping and undetected pegmatites that may host rare metal mineralisation,” Metalicity sadi in its ASX announcement.

“Desktop surveys have commenced to refine target areas for field surveys, which will include geological mapping and geochemical sampling programs.

“Importantly, the company’s initial exploration programs in these new project areas are sufficiently funded with the company’s existing cash in bank.”