PROJECT FOCUS
profile(~ 215,000 t / y spodumene concentrate) is smaller than some of its development peers, we see the lower capex and faster timeline to production as key positives underpinning our investment thesis. The modest capital requirement should allow AJM to retain 100 % ownership of the project and establish itself early in an increasingly competitive supply environment.”
Altura has executed a Binding Offtake Agreement( BOA) with China-based Lionnergy( 24 April 2016) for an initial 100,000 t / y over five years. This could be extended and is a key derisking factor for the project. Lionnergy is also a significant shareholder following a A $ 3 million placement in March 2016.
Altura also has a non-binding MoU for offtake with Chinese battery giant Optimum Nano, an alliance that could be important for AJM as a natural resource supplier into the expanding lithium battery market.
A report by Hartleys notes:“ The ability to increase to 2 Mt / y is positive for off-take should demand grow faster than anticipated. The simple flow sheet( does not depend on tantalite credits) is another positive for AJM.”
The completion of the feasibility study was a significant milestone as the mining development is fast tracked towards production in Q3 2017. The definitive feasibility study( DFS) is scheduled for completion in Q3 2016. Altura has also commenced a drilling program at Pilgangoora with the immediate focus to deliver additional spodumene ore feedstock for additional metallurgical testing and geotechnical assessment to support the mine design parameters. In addition to the current drill program Altura has plans underway to conduct a multi-focus supplementary drilling program focussed on delivering the following: n Upgrading existing Inferred Resources to Indicated Resources within the initial pit shell – once upgraded to Indicated Resources, the Ore Reserve estimate can be expanded to include this inventory with the application of modifying factors n Resource extension and exploration drilling – given Altura’ s vast tenement holdings and increased knowledge of the spodumene rich pegmatite trends the company will expand its focus in the northern and western tenement sections of E45 / 2287 with an aim to adding resources to the existing inventory
Altura reports that significant potential exists to increase both the current mineral resource of 35.7 Mt and ore reserve estimate via upgrading portions of the current inferred resources in order to convert to probable ore reserves and additional exploration drilling in previously untested areas of the tenements.
Pilgangoora will be extracted by open pit methods enhanced by the shallow and thick mineralisation allowing spodumene ore to be mined from the commencement of mining. The FS has highlighted a very attractive LOM strip ratio of 2.7:1 providing Altura with a very low operational mining cost. The project contains a Maiden Ore Reserve estimate of 18.47 Mt of Probable Reserves which underpins the initial 12 + year mine plan. Low grade ore stockpiled during mining will be processed after year 12 until Year 15.
Pilgangoora is ideally located in the wellestablished Pilbara mining region of Western Australia with close proximity access to port and Asian markets. Production is planned for third quarter 2017 after a nine month construction period which will place Altura in an elite group of near term lithium supply companies.
The Pilgangoora area is about a 123 km drive from the town of Port Hedland. Road access to the site is via the Great Northern Highway and then Shire roads and station tracks.
The Pilgangoora Mining Lease Application tenements, covering the resource modelling area, are M45 / 1230 and M45 / 1231 and cover an area of 394 ha. The objective is to develop the project on the basis of a concentrator plant producing spodumene concentrate at 6 % Li 2O from an average feed to a plant of between 1.15 and 1.20 % Li 2O.
Concentrate will be exported by ship from Port Hedland to lithium producers, predominantly in China, for further processing into a wide range of lithium chemicals, including lithium carbonate
Pilbara’ s Pilgangoora project – Mineral Resource Estimate
( standard and battery grade), lithium hydroxide, lithium metal, and lithium chloride.
In June, Altura Mining settled a A $ 20 million placement with institutional investors. These additional funds will be spent to fast track development and expansion of the project including: n Timely completion of the DFS n Payments due on long lead items and deposits on plant n Additional exploration of its Pilgangoora tenements.
Sileach
With the same name, Pilbara Minerals’ Pilgangoora lithium-tantalum project in Western Australia, is on track to become a leading supplier of high-quality spodumene concentrates within the next 18 months. Pilbara has reached agreement with Lithium Australia to jointly evaluate the commercial potential of a new lowcost processing technology for the production of lithium carbonate, the Sileach™ process.
This may allow Pilbara to move up the value chain and enhance its future competitiveness by participating in lithium conversion, allowing it to benefit from the significant margins on offer in the lithium carbonate and hydroxide markets. The company recently commissioned a positive independent scoping study by a highly regarded global engineering firm into the opportunity to construct a lithium carbonate / hydroxide plant in Port Hedland, in conjunction with partners. It has also been reviewing the latest R & D work into technologies which could reduce the costs for converting spodumene into lithium carbonate and lithium hydroxide, offering the potential to further improve relative operating cost performance to alternative sources of supply.
Unlike conventional processes, the Sileach hydrometallurgical process does not require a roasting step, and therefore has the potential to be much more energy efficient. Reduction of energy consumption, together with the potential to recover valuable byproduct credits, may provide cost efficiencies which were not previously possible.
Lithium Australia’ s( LIT) Sileach process is readily adaptable to other silicate minerals also and has been developed to reduce the cost of
Category Mt Ta 2O 5 Li 2O Ta 2O 5 Ta 2O 5 Li 2O( ppm) Li 2O(%)( t)( Mlb)( t)
Indicated Ta 2O 5 17.9 182 3,255 7.2 Li 2O 35.7 1.31 469,400
Inferred Ta 2O 5 24.3 205 4,995 11.0
Li 2O 44.5 1.21 538,600 TOTAL Ta 2O 5 42.3 195 8,250 18.2
Li 2O 80.2 1.26 1,008,000
14 International Mining | AUGUST 2016