THE BOURSE WHISPERER: Lithium Australia (ASX:LIT) announced it is to, subject to regulatory requirements, acquire 100 per cent of the Sadisdorf lithium/tin resource from Tin International AG.
Lithium Australia said the acquisition of Sadisdorf provides the company a unique opportunity with the potential to develop a domestic European lithium supply, synchronously with the establishment of lithium-ion battery (LIB) production capacity on the Continent.
The company indicated that on completion of the Sadisdorf acquisition, it will accelerate its development plans with a view of completing a scoping study by October 2018.
The scoping study will run in parallel with evaluation of nearby cobalt mineralisation, development of the company’s registered SiLeach technology, and downstream processing to LIB cathode materials.
Consultant CSA Global has estimated that the Sadisdorf project has an Inferred Mineral Resource of 25 million tonnes grading 0.45 per cent lithium dioxide (Li2O)
Lithium Australia said this lithium is contained within lithium micas within alteration around tin mineralisation, the latter being the subject of historic mining.
The company claims the lithium micas can be readily concentrated after the removal of tin by conventional gravity separation.
Lithium has been successfully extracted from Sadisdorf mica concentrates using LIT’s SiLeach process.
“Acquisition of Sadisdorf is a key component of our European energy metal supply strategy,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.
“SiLeach® is the only practical means of realising the full potential of deposits of this type where value can be recovered from the lithium, tin, potassium and other valuable by-products.
“Our recent cobalt exploration success in the region is testimony to the latent potential of Saxony as a supply centre of the European battery industry.”