www.lithiumamericas.com
Lithium Americas (TSX: LAC) has identified the 3rd largest known lithium brine resource in the world, and the results of a National Instrument 43-101 compliant Preliminary Economic Assessment identify that the Company's flagship property in Argentina has the potential to become one of the lowest cost lithium operations in the world. Mitsubishi Corporation and Magna International are strategic shareholders in the Company, in addition to both having off-take arrangements with Lithium Americas.
Lithium Americas completes two production wells, pilot evaporation pond at Cauchari-Olaroz
Lithium Americas (TSX: LAC) reported that it had completed a number of operational milestones at its Cauchari-Olaroz lithium-potash project, which sits within the Puna Plateau in Argentina. The company is currently completing a preliminary economic assessment, anticipated to be released in Q1 2011, and a feasibility study, due to be completed at end of 2011.
As part of the ongoing studies, Lithium Americas has been drilling wells into the aquifers and building evaporation ponds to get a better handle on the economics that can be expected once the project moves to a full scale operations.
This morning the company confirmed that it had now completed a two 17 inch production wells and ten 5 ¼ inch monitoring wells. The production wells will be used to test pumping rates in the aquifers to a depth to 200 meters, while the monitoring wells will monitor the production wells as they drain down the aquifers.
In addition to the wells, Lithium Americas confirmed that it had completed and filled the first large scale pilot evaporation pond, which will produce concentrated brine for the production of lithium carbonate. Work on an larger, 100 meter x 100 meter pond has also commenced, with installation of the pond liner underway.
"The completion of the production wells and the construction and filling of the large scale pilot evaporation pond represents the successful completion of another significant milestone in the advancement and commercialization of the Cauchari-Olaroz project, the third largest lithium brine deposit in the world," said Waldo Perez, President & CEO of Lithium Americas Corp.
"This demonstrates that Lithium Americas remains on schedule to complete its Preliminary Economic Assessment in the first quarter of 2011, and to have a decision on mine construction in 2012."
The Puna Plateau, which spans across Argentina, Chile and Bolivia, produces about 50% of the world’s lithium and hosts 83% of the world’s lithium brine reserves.
Lithium Americas’ Cauchari-Olaroz is the third largest lithium brine resource in the world, with a NI 43-101 compliant, measured and indicated resource containing 5.3 million tonnes of lithium carbonate and 17.3 million tonnes of potash.
Strategic investors include Magna International with 13.3% and Mitsubishi Corporation with 4%. Both investors are involved with vehicle manufacture and have secured the option to purchase up to 37.5% of lithium output for battery production. The 37.5% off-take option is contingent on the 2 parties providing up to 37.5% of the project financing via interest free loans, and assisting Lithium Americas in securing up to an additional 37.5% in project financing via third party lenders.
Mitsubishi will also provide technical collaboration on studies to recover lithium from brine, and their ultimate goal is to form a joint venture with LAC to put the project into production pursuant to a memorandum of understanding (MOU) executed by the two parties.
