USA News Group
Commentary
Issued on behalf of Lithium South Development
Corporation
VANCOUVER, BC, May 7, 2024
/PRNewswire/ -- USA News
Group – Even though prices are currently down from where they
were in 2022, experts still see the monumental importance of
lithium in the years and decades ahead. According to a recent post,
the UN Trade & Development (UNCTAD) projects based on
data from the International Energy Agency (IEA) that by
2050, lithium demand could rise by over 1,500%. UCTAD also
believes that to achieve the global 2030 net-zero emission targets,
the lithium mining industry will need 70 new mines. Seeking to
provide the critical minerals necessary for the green electric
revolution, lithium miners continue to develop several promising
new projects, including Lithium South Development
Corporation (TSXV:LIS) (OTC:LISMF), Lithium Americas
(Argentina) Corp. (NYSE:LAAC),
Atlas Lithium Corporation (NASDAQ:ATLX), Standard Lithium
Ltd. (NYSE-American: SLI) (TSXV: SLI), and Rio Tinto
Group (NYSE:RIO).
A new Preliminary Economic Assessment (PEA) was recently
filed by Lithium South Development
Corporation (TSXV:LIS) (OTC:LISMF), bolstering the
company's plans to advance the development of a lithium carbonate
production facility with an annual output of 15,600 tonnes. The
assessment reveals a promising financial outlook, highlighting an
after-tax Net Present Value (NPV) of US$938
million and an Internal Rate of Return (IRR) of 31.6%, with
a payback period of just 2.5 years. ( see note 1 below )
"We are very pleased to have achieved this important milestone
for the HMN Li Project," said Adrian F.C.
Hobkirk, Founder, President and CEO of Lithium South.
"The robust economics and room for expansion indicate a promising
future for Lithium South."
For the HMN Li project, Lithium South intends to
utilize a conventional solar evaporation process for extracting and
recovering lithium from well brine, with contaminants such as
magnesium being removed through established methods like liming.
The purified, concentrated lithium solution will subsequently be
converted into technical-grade lithium carbonate.
Lithium Souths' announcement of the PEA follows closely
on the heels of the company's recent expansion of its production
well drilling program. At the Alba Sabrina claim block, which spans
2,089 hectares and is the largest in the project, a 400-meter deep
pumping well was recently completed. Operations at this well have
effectively removed sediments, yielding a flow of clear brine
exhibiting strong artesian properties that are conducive to higher
brine extraction rates. In pursuit of optimizing these results,
Lithium South has installed a new, more powerful 80-kilowatt pump
and is currently conducting a long-term pump test. Depending on the
outcomes, the company plans to drill additional wells at Alba
Sabrina as well as in the southern Viamonte
and Norma Edith claim blocks.
"These developments on the Alba Sabrina claim block could
potentially enhance our operational capacity," said Hobkirk. "The
completion of this pumping test, anticipated by the end of May,
will provide critical technical insight into the capacity potential
of this area of the salar."
Earlier this year, Lithium South along with Korean
conglomerate POSCO formed a pivotal cooperative
development agreement on the HMN Li Project, marking a
significant advancement towards lithium production. Additionally,
at the close of 2023, Lithium South updated its NI
43-101 technical report for the flagship HMN Li asset. This
update revealed a substantial increase of 175% in its lithium
resources, totaling over 1.58 million tonnes of lithium carbonate
equivalent (LCE) ( see note 2 below )
Recently a series of large investors modified their
holdings in Lithium Americas (Argentina) Corp. (NYSE:LAAC), including
Mackenzie Financial Corp. purchasing a number of shares
valuing approximately $363,000. The
moves came shortly after the company also known as Lithium
Argentina announced it had
executed a definitive agreement with a subsidiary of Ganfeng
Lithium to acquire $70 million in
newly issued shares of Proyecto Pastos Grandes S.A.
(PGCo), its indirect wholly-owned Argentinian subsidiary
holding the Pastos Grandes project.
"The Transaction with Ganfeng Lithium demonstrates
our long-term commitment to Salta and the sustainable development
of Argentina's lithium industry,"
said John Kanellitsas Executive
Chairman, interim CEO and President of Lithium Argentina. "While we continue to
prioritize the ramp up at Caucharí-Olaroz, already among the
largest lithium brine operations in Argentina, the Transaction further strengthens
our balance sheet and enhances our growth plans by leveraging our
existing teams and nearby operations."
Another notable collaboration between a South American focused
lithium miner with an Asian conglomerate is that of Atlas
Lithium Corporation (NASDAQ:ATLX) having recently secured a
US$30 million strategic
investment and offtake agreement from Japanese giant,
Mitsui. The share purchase came at a 10% premium to the
5-day VWAP, while also initiating an Offtake Agreement for the
future purchase of 15,000 tons of lithium concentrate from Phase 1
and 60,000 tons per year for five years from Phase 2 of Atlas
Lithium's soon-to-be-producing Neves Project in Brazil's Lithium Valley, starting at the same
time.
"Today marks a significant milestone for Atlas
Lithium as we progress towards our goal of becoming a key
lithium supplier to the global EV battery materials supply chain,"
said Marc Fogassa, CEO and Chairman of Atlas Lithium.
"Mitsui's investment reflects confidence in our team,
assets, and business model."
Just over one month after successfully installing a
commercial-scale DLE column at its Demonstration Plant near
El Dorado, Arkansas, Standard
Lithium Ltd. (NYSE-American: SLI) (TSXV: SLI) recently
announced the DLE column's successful commissioning, marking the
largest continuously-operating DLE equipment of its kind in
North America.
The large new column is now successfully pulling lithium from
Smackover Formation brine at a rate of 90 gallons per minute. As
far as Standard Lithium knows, this is not only the
biggest direct lithium extraction (DLE) setup and the only one of
its kind at a commercial scale in North
America. Since it started running, the column has been
working non-stop and doing even better than expected at recovering
lithium and filtering out unwanted materials.
"Importantly, the column currently operating at SLI's
Demonstration Plant is identical to those that will be used in the
commercial application, both in terms of the size, design and
construction of the column, as well as the sorbent media being used
inside," said Dr. Andy Robinson,
Director, President & COO of Standard Lithium.
"Validation of performance and successful operation of this column
is a significant derisking step on our way to becoming the next
major sustainable lithium producer in North America."
Less than a month after Rio Tinto Group's (NYSE:RIO)
CEO Jakob Stausholm told
Reuters that he was bullish on lithium but not seeking any
big acquisitions, Reuters has now also recently
reported that the mining giant has now earmarked $350 million for its Rincon lithium project in
Argentina. The news of the
9-figure investment came shortly after Stausholm visited the site
and declared the strategic importance of the investment.
"The hard work of our Rincon team is laying the groundwork for
our first lithium production by year's end," said Stausholm. Rio
Tinto acquired the project in 2022 from Rincon Mining
for $825 million, and is preparing to
establish a battery-grade lithium carbonate plant capable of
producing 3,000 tonnes annually upon completion.
Source:
https://usanewsgroup.com/2023/10/18/the-lithium-race-to-power/
CONTACT:
USA NEWS
GROUP
info@usanewsgroup.com
(604) 265-2873
Mr. William Feyerabend, a
Consulting Geologist and Qualified Person under National Instrument
43-101 participated in the production of this advertisement, and
approves of the technical and scientific disclosure contained
herein pertaining to Lithium South.
Note 1 The report titled, N.I. 43-101
Preliminary Economic Assessment Hombre Muerto North Lithium
Project, Salta, Argentina, was completed by
Knight Piesold Consulting and JDS Energy and Mining Inc., and SEDAR
filed April 30, 2024
Note 2 Report titled Updated Mineral Resource Estimate
– Hombre Muerto North Project, NI 43-101 Technical Report Catamarca
and Salta, Argentina,
Mark King, PhD, PGeo, Peter Ehren, M.Sc, MAusIMM, September 5th, 2023 and SEDAR Filed November 6, 2023
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Qualified Person as defined under National Instrument 43-101. Mr.
Feyerabend approves of the scientific and technical disclosure
pertaining to Lithium South contained within this advertisement.
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