Canada Lithium Provides Update on Qu�bec Lithium
Project; Appoints Vice President Marketing
Canada Lithium Corp. (TSX:
CLQ) (OTCQX: CLQMF) announced today that construction at its Quebec Lithium
Project has advanced to the point that the structural steel of the process
plant is now being erected. The Company has also appointed a senior marketing
professional whose role is to market the Company's primary product,
battery-grade lithium carbonate, the first production of which is planned to
occur in 2013. A key aspect of marketing will focus on off-take agreements.
Project Update
Initial site preparation
was completed in September of this year. The pouring of concrete footings
and foundations followed in October and preliminary civil, structural and steel
work has commenced. The metal cladding of a portion of the mine-truck garage is
now in place. GENIVAR Inc. ("GENIVAR") and Met-Chem
Inc. ("Met-Chem") have completed
approximately 90% of the detailed process engineering design, and tender
packages have been issued for all major items of equipment. Contracts have been
awarded for the crushing circuit, kiln, ball mills,
flotation circuit and high-voltage switch gear. At this stage of the
development schedule, firm orders, fixed tenders or detailed supply offers have
been made for approximately 30% of the budgeted capital expenditure. The first
major process equipment deliveries are scheduled for April 2012. The Company
has also received committed offers of lease finance for mining equipment from
major equipment suppliers. The main mining fleet is scheduled to be on site by
May 2012.
Photometric sorting testwork on the granite waste rocks (primarily black in
color) and spodumene ores (white) has been completed
in Germany. The tests indicate that a significant amount of waste rock
can be removed from the ore stream prior to entering the processing plant, thus
reducing waste in the process stream and increasing lithium feed grade. The
design phase for the photometric installation within the crushing circuit is
under way. Preliminary scheduling indicates installation could occur during
commissioning of the lithium carbonate circuit in early 2013.
Lithium hydroxide
metallurgical testwork, completed at SGS Lakefield
laboratories, has demonstrated that the flow sheet design may be able to
produce lithium hydroxide products suitable for battery-grade applications.
GENIVAR and Met-Chem are reviewing the design
criteria to incorporate a 2,000-tonne-per-year lithium hydroxide circuit within
the Qu�bec Lithium processing plant. Review of the lithium hydroxide market is
ongoing.
GENIVAR continues to update
the project schedules and budgets on a monthly basis and is scheduling for
commissioning of the processing plant in the fourth quarter of 2012 and
production of first lithium carbonate in the first quarter of 2013. This
schedule is subject to winter construction constraints, lithium market
conditions, equipment deliveries, construction schedules, permitting and
completion of financing. Applications for both the Mining License and tailings
disposal license are proceeding through the Provincial approval process.
Capital cost estimates for the construction of the project to produce 20,000 tonnes per annum of 99.5% battery-grade lithium carbonate
has been revised from US$202 million to US$207 million to allow for optical
(photometric) sorting equipment and minor refinements to the flow sheet. As of
September 30, 2011, the Company had $112 million cash on hand. The
Company is in discussions with domestic and international financial
institutions to complete the debt financing required for the remainder of the
capital expenditures to build the mine and processing plant.
AMC Mining Consultants is
finalizing an updated Mineral Resource estimate following completion of a drill
program earlier this year.
Appointment of Shaun
McCurdy, Vice President, Marketing
The Company is very pleased
to announce the appointment of Shaun McCurdy as Vice President,
Marketing. Mr. McCurdy will be responsible for marketing the
Company's lithium carbonate, lithium hydroxide and spodumene
production from its Qu�bec Lithium operation. Mr. McCurdy has over 20
years of global experience in the marketing of minerals and mineral
commodities. Most recently he was Product Manager, Cobalt and Copper, for
Switzerland-based Eurasian Natural Resources Corp. He has also held
senior marketing posts with Nikanor, Katanga Mining
and Sherritt International. Apart from the
usual marketing functions, which include overseeing sales strategy, marketing
activities, market research and customer service functions, Mr. McCurdy has extensive
experience in negotiating and administering off-take agreements and he will now
take over negotiations with potential customers who have previously received
lithium carbonate samples.
About
Canada Lithium Corp.
The Company holds a 100%
interest in the Qu�bec Lithium Project near Val d'Or, the geographical heart of
the Qu�bec mining industry. The Company plans to build an open-pit mine and
processing plant on-site with capacity to produce approximately 20,000 tonnes of battery-grade lithium carbonate. Metallurgical
tests have produced battery-grade lithium carbonate samples. The Company trades
under the symbol CLQ on the TSX and on the U.S. OTCQX under the symbol CLQMF.