Tuesday, September 13, 2011
Galaxy Commences Feasibility Study at Lithium One's James Bay Project
Lithium One Inc. (the "Company") (TSX-V: LI), is pleased to announce that Galaxy Resources Limited (ASX: GXY "Galaxy") has commenced a Definitive Feasibility Study ("DFS") on the Company's James Bay lithium pegmatite Project ("James Bay").
Earlier this year, Galaxy signed a definitive earn-in and joint venture agreement to acquire up to 70% of the James Bay project from Lithium One. Under the agreement, Galaxy acquired an initial 20% equity interest in James Bay for C$3 million and has the potential to earn 70% through the completion of a DFS within a 24-month period, including a further investment of at least C$3 million in the first 12 months. (See Company news release dated February 15, 2011).
The James Bay project is an extensive, high-grade spodumene pegmatite deposit that occurs at surface, including a NI 43-101 compliant mineral resource of 11.75 million tonnes at 1.30% lithium oxide in the indicated category, and 10.47 million tonnes at 1.20% lithium oxide in the inferred category, at a 0.75% lithium oxide cutoff grade. (See Company news release dated November 18, 2010).
The project has potential to significantly add to Galaxy's resource base and lithium supply. The James Bay project will incorporate a mine, processing plant and battery-grade lithium carbonate plant. Galaxy expects to be able to fast track the development of James Bay by using similar capacity and design as the plants constructed at its Mt Cattlin spodumene mine in Western Australia and its Jiangsu lithium carbonate facility in China.
Lithium One Chairman Martin Rowley commented: "Lithium One is pleased to now have both the James Bay spodumene project and our Sal de Vida lithium-potash brine project well on the path to the completion of feasibilities that are being funded by third parties. This brings us closer to our goal of being a low-cost producer of lithium and potash at Sal de Vida, together with the added value to our shareholders through the interest we maintain in the James Bay project that is being managed by experienced spodumene producer, Galaxy Resources Limited."
Galaxy has appointed Montreal-based engineering services consultancy Genivar Inc. (Genivar) to manage the DFS. Genivar is one of Canada's largest engineering services firms and has extensive experience in the James Bay area.
Galaxy has engaged mining engineering firm DRA Americas Inc. to work on the James Bay processing plant design component of the DFS. Galaxy said the design of the James Bay plant's crushing and heavy media separation concentrator would be modeled on Galaxy's Mt Cattlin plant in Western Australia and expected the plant to process 1,000,000 tonnes of ore per annum.
The James Bay project will also include a battery-grade lithium carbonate plant. The DFS will assess whether the most suitable location is Quebec or in Jiangsu, China, next to Galaxy's existing lithium carbonate facility.
Galaxy said the lithium carbonate plant design would mirror the design of the Jiangsu plant, with production of 17,000 tonnes per annum of battery grade lithium carbonate. Similarly, the design will incorporate a purification circuit, allowing production of grades above 99.5% lithium carbonate.
This component of the DFS will be undertaken by Hatch Engineering, Galaxy's existing EPCM contractor for the Jiangsu lithium carbonate plant.
The location of a bulk sample test pit has also been selected. Approximately 50 tonnes of pegmatite will be extracted for crushing and heavy media test work. The bulk sample will be collected by Nord-Fort Inc. Galaxy is working together with the local First Nations community to coordinate the sample collection. Any further test work involving conversion of upgraded spodumene to lithium carbonate will be completed at Galaxy's Jiangsu laboratory.
About Lithium One:
Lithium One Inc. is well positioned to be a next-generation low cost producer of lithium and potash. The Company has two major projects funded through feasibility by earn-in partners: the Sal de Vida lithium and potash brine project in Argentina and the James Bay bulk tonnage spodumene project in Quebec. The Sal de Vida project is one of the largest and the highest-grade lithium and potash brine projects in the world, with an NI 43-101 inferred resource of 5.4 M tonnes of Lithium Carbonate equivalent and 21 M tonnes of Potash equivalent (1,470M m3 at 695 mg/L Li and 7590 mg/L K). KORES, LG International and GS Caltex are earning a maximum 30% project equity in Sal de Vida by funding the feasibility study expected in less than twelve months and providing an off-take agreement for up to 50% of the lithium production. Galaxy Resources is earning a maximum 70% project equity in the James Bay Project through an earn-in agreement that includes delivery of a feasibility study by early 2013. The Company's strategy is to draw upon its quality team and employ best practice to develop its projects into leading suppliers of low-cost, high quality lithium products to the global market.
ON BEHALF OF THE BOARD OF DIRECTORS,
Paul Matysek,
Chief Executive Officer
Lithium One Inc.
1010-130 Adelaide Street West,
Toronto, ON M5H 3P5 Canada
Email: info@lithium1.com
Website: www.lithium1.com
FOR FURTHER INFORMATION, PLEASE CONTACT
Investor Inquiries:
Robert Orr
Telephone: 604-805-2126
Email: ro@lithium1.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This document may contain "forward-looking information" within the meaning of Canadian securities legislation (hereinafter referred to as "forward-looking statements"). All statements, other than statements of historical fact, included herein including, without limitation statements relating to; the completion of a Scoping Study, Preliminary Economic Assessment or Feasibility Study, securing of debt for future project construction, purchase of future mine production, the timing for completion of an NI 43-101 compliant resource and other matters related to the exploration and development of the Project, are forward-looking statements. These forward-looking statements are made as of the date of this document and the Company does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements relate to future events or future performance and reflect management's expectations or beliefs regarding future events. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include unsuccessful exploration results, changes in metals prices, changes in the availability of funding for mineral exploration, unanticipated changes in key management personnel and general economic conditions, title disputes as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements.
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1 For details please see the NI 43-101 Inferred Resource Estimate Technical Report report dated April 25, 2011, filed on SEDAR. | |