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Western Lithium climbs as Nevada lithium project advances to demonstration campaign

Published: 13:49 08 Sep 2014 EDT

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Shares of Western Lithium USA (TSE:WLC)(OTCQX:WLCDF) were rising on Monday after the company announced the start of the first of three planned campaigns to show its lithium-rich clay deposit's potential for extracting lithium on a large scale basis in Nevada.

The company said it has commenced calcination of its lithium clays, with calcination being the first step to turning the lithium-bearing clay into water-soluble lithium sulphates so that a brine can be produced through leaching.

The calcination plant is now operational, Western Lithium said, while the downstream leaching, crystallization and precipitation process is still under construction, expected to start up in November. Planned production of lithium compounds will continue through the fall and into the spring of next year, the company said, so as to determine engineering and equipment to complete a definitive feasibility study for its patented extraction process. 

It is estimating annual production of up to 26,000 tonnes per year of lithium carbonate equivalent, which it expects will meet lithium demand for between 500,000 to over 1 million electric cars, depending on the size of the automotive lithium ion batteries.

The company also has the potential for expansion, as its Nevada property hosts inferred and historical lithium resources which extend for over 20 miles across mining claims that have not been included in mine planning to date. 

"We see the potential for Nevada to become a major international hub for lithium production," said chief executive Jay Chmelauskas.

"Recently announced plans to develop the world's largest lithium-ion battery manufacturing facility within the State of Nevada, provides possible synergies between our businesses," he added, referring to Tesla's recent announcment to build its planned Gigafactory in Nevada.

"The state has an opportunity to capture the innovation and invention that is taking place across the lithium sector, and our demonstration plant is the next step to establish new technology and to create another significant new business in Nevada."

The company has spent the last several years advancing its lithium project to be ready for a demonstration campaign. A detailed design for a lithium demonstration facility was completed in 2013.

Shares of Western Lithium advanced over 9 percent on Monday, to trade at 84 Canadian cents as of 1:20pm ET. So far this year, the stock has more than tripled.

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