The Conversation (0)
Accelerate Resources Limited (ASX: AX8) ("AX8" or the “Company") is pleased to announce the expansion of its lithium exploration project footprint in the East Pilbara region of WA, with the recent application for four new tenements (E45/6416, E45/6604, E45/6615 and E45/6634) covering an additional 395 km2 in an area proven to host lithium deposits. Two of Accelerate’s tenement applications (E45/6416 and E45/6634) are subject to competing applications by other companies, with final ownership to be decided by ballot.
- AX8 has expanded its 100%-owned East Pilbara Lithium Project adjacent to Global Lithium Resources’ (ASX:GL1) Archer deposit (18 Mt @ 1.0% LiO2), with four new tenement applications.
- AX8 now has ~800 km2 of lithium prospective tenure under application (seven licences) in WA’s Pilbara region. Two applications are subject to a ballot.
- AX8 has identified targets across the new tenements using the same exploration model applied by GL1 at the nearby Archer Deposit.
- Initial mapping and rock chip sampling of pegmatites to evaluate new targets has recently been completed with results pending.
Figure 1: AX8 East Pilbara Lithium Project location
AX8 Managing Director Yaxi Zhan commented:
"Accelerate's East Pilbara Lithium project, strategically positioned just 30 km southeast of Global Lithium Resources' (ASX:GL1) Archer deposit, holds promise for delivering positive lithium exploration results. Our recent application for four new tenement applications has expanded our exploration project area to over 800 km2, unlocking geological potential akin to the large Archer Lithium Deposit.
Utilising the same proven exploration model employed for the Archer Deposit, we have successfully identified potential lithium targets in these new areas which is an exciting development. Our initial ground-based mapping and sampling program targeting potential lithium, tin and tantalite mineralisation has been completed, and we eagerly await the imminent results in the coming weeks."
East Pilbara Lithium Project
Accelerate's East Pilbara Lithium Project (Figure1) is strategically situated within a region of active lithium exploration and discovery, encompassing the following prominent deposits: Global Lithium Resources' Archer deposit (ASX:GL1), Tabba Tabba Lithium Project (ASX:WC8), Pilgangoora Lithium Project (ASX:PLS) known for its large-scale lithium mine, and Wodgina Lithium Project (ASX:MIN), which demonstrates the significant lithium prospectivity of the area (Figure 1).
Two of the Company’s new tenement applications are located within the sedimentary-basalt rim adjacent to a large granite pluton (informally known as the Wongawobbin Pluton), which contains several granite suites (such as the Cleland Supersuite granite) located within a swarm of north oriented faults. Satellite image interpretation has identified several zones of quartzose felsic rocks that are prospective for lithium bearing pegmatites (see Figure 2).
These intrusive suites contain various granitic phases, including tonalite, monzogranite and granodiorite compositions. Within the Pilbara Craton, monzogranites are frequently associated with lithium mineralisation. For example, the Wongawobbin Pluton contains similar granite types and granite supersuites as the Moolyella Pluton, immediately east of Marble Bar, which is known for its associated Tin-Tantalum-Lithium mineralisation (Figure 3).
Figure 2: E45/6604 and E45/6615 Prospects
The Archer Lithium Deposit (ASX:GL1) is located on the western edge of the Moolyella Pluton within a rim of interleaved basalt, gneiss and granite material, which is associated with a NNE trending quartz-filled, concentric fault system. The GSWA has identified the Bishop Creek Monzogranite, which is part of the Cleland Supersuite, as being a potential lithium source for the Archer Deposit.
Accelerate’s new tenement applications cover a broadly analogous position around the Wongawobbin Pluton, similar to that of the Archer Lithium Deposit and the Moolyella Pluton (Figure 3).
Click here for the full ASX Release
This article includes content from Accelerate Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
March 2024 Quarterly Report
Butcherbird Manganese Operations, Western Australia
- Detailed design, planning and procurement commences for Stage 2 Expansion Project to expand Butcherbird manganese ore production to 1.1 million tonnes per annum in line with a Feasibility Study (FS) completed in January 20241.
- Northern Australia Infrastructure Facility (NAIF) completes a strategic assessment of Butcherbird Stage 2 Expansion Project.
- Expansion Project is now proceeding with the detailed due diligence phase of NAIF’s assessment process.
- Manganese ore prices increasing, potentially in response to the South 32 Limited (S32) production disruption at Groote Eylandt. S32 is now estimating a repair timeline of ~12 months2.
Battery Grade High Purity Manganese (HPMSM) Development – Louisiana, USA
- E25 progresses engineering development, permitting, logistics and project financing via offtake and funding agreements for HPMSM facility in USA.
- Air Permit public meeting successfully completed paving the way for the formal issuance of the permit.
In January 2024, Element 25 Limited (E25, the Company) released a Feasibility Study (FS) on the proposed expansion of its 100%-owned Butcherbird Manganese Operations in Western Australia (WA) to target manganese concentrate production of 1.1 million tonnes per annum (Mtpa). The FS demonstrated strong economics with robust economic returns and rapid capital payback.
Expansion of the processing facility at Butcherbird is an important step in providing feedstock for the Company’s planned battery grade high purity manganese sulphate monohydrate (HPMSM) project to be built in Louisiana, USA in partnership with General Motors LLC and Stellantis NV3.
E25 is now, via a dedicated owners team supported by selected external contractors and consultants, advancing detailed design, planning and procurement activities for the Stage 2 expansion in parallel with financing.
Figure 1. Butcherbird Expansion Project Feasibility Study Summary4.
In parallel with expansion activities, the Company suspended Butcherbird’s current production operations, aiming to reduce operational cash outflows and re-focus resources and available cash on implementing the expansion plan outlined in the FS.
50,540mt of manganese concentrate was shipped on 27 January 2024. Approximately 15,000mt of manganese concentrate was subsequently transported to Port Hedland and will form part of a shipment scheduled to be loaded in early May 2024 (estimated). Stockpiles have now been depleted in line with care and maintenance activities on site, with haulage winding back and ultimately ceasing in early March 2024.
The current schedule anticipates operations to recommence in approximately 11 months following project financing being secured, when E25 plans to increase annual production to 1.1 million tonnes per annum of manganese oxide concentrate. Further detail and an updated schedule will be provided as the project team works through front-end engineering and design (FEED) activities.
Northern Australia Infrastructure Facility Strategic Assessment
During the quarter, the Northern Australia Infrastructure Facility (NAIF successfully completed a strategic assessment of the Butcherbird Stage 2 Expansion Project. The Expansion Project is now proceeding to the detailed due diligence phase of the NAIF assessment process.
Click here for the full ASX Release
This article includes content from Element 25 Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
E25 Progresses USA HPMSM Refinery Plans
Element 25 Managing Director Justin Brown said: “E25 aims to be a leading source of high quality, vertically integrated, traceable and ESG and IRA-compliant battery material to the global electric vehicle industry. Construction of our HPMSM facility in the USA – the first of its kind there – is a key pillar to the strategic plan which aims to position E25 as the industry leading provider of high quality ethically sourced battery-grade manganese to support global electrification efforts.
Engineering Development
Basic engineering packages for specific sections of the plant are being generated by equipment vendors. Design development of the balance of the processing facility is progressing. The project engineers have developed an initial project execution plan, procurement plan and other foundational elements, which are being reviewed. Project controls are being developed to manage cost and schedule.
Figure 1. 3D engineering model development for Louisiana HPMSM refinery.
Schedule
The project schedule has been developed, incorporating all facets of the project, including engineering, permitting, project financing and construction. Commencement of construction and commissioning are under review pending the execution of binding terms on the project site, in addition to the conclusion of project financing activities and a Final Investment Decision by E25’s Board of Directors to commence construction (FID).
The current schedule development provides for approximately 80 weeks of project build time based on the current critical path, however is being reviewed with the aim of compressing construction timelines.
The current timeline assumes no material interruptions to project development once construction commences due to procurement, procurement delays or weather-related disruptions.
Project Site Selection
Discussions continue with the owners of the preferred project site with the intention of combining land, sulphuric acid and ancillary services into the commercial terms. The principal reagent required by the Element 25 HPMSM process is sulphuric acid, and securing reliable supply at competitive commercial terms is an important aspect of the site selection process. Other considerations include inbound and outbound logistics and site permitting requirements. Site-specific engineering activities are currently paused pending finalisation of these commercial agreements.
Permitting
Air Permit
The air permit is a key requirement to commence facility construction. Any source, including a temporary source, which emits or has the potential to emit any air contaminant (defined as particulate matter, dust, fumes, gas, mist, smoke, or vapour, or any combination thereof produced by the process(es) other than natural) requires an air permit. As part of the permitting process, Element 25 has completed a detailed assessment of expected emissions from the HPMSM refinery and provided this information along with supporting documentation to the Louisiana Department of Environmental Quality (LDEQ).
A draft permit has been issued, and comments have been provided to the regulator. The final stage of the permitting process is a public meeting, currently scheduled to be held on 18 April 2024 to be held in the local community centre close to the proposed project site.
The LDEQ Office of Environmental Services will conduct a public hearing in order to receive comments on the proposed Initial Part 70 Air Operating Permit and the associated Environmental Assessment Statement (EAS) for Element 25 (Louisiana) LLC, being the operator of the site. It is anticipated that the final permit will be issued during May 2024 at the conclusion of this process.
Click here for the full ASX Release
This article includes content from Element 25 Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
December 2023 Quarterly Report
QUARTERLY HIGHLIGHTS
Butcherbird Manganese Operations, Western Australia
- Butcherbird Expansion Feasibility Study targets 1.1 million tonnes per annum (Mtpa) manganese production.
- Study demonstrates strong fundamentals, with robust economic returns and rapid capital payback:
- Expansion envisages expanded open-cut mining methods, modified primary comminution circuit and dense media separation (DMS) back-end solution to optimise grade and recoveries.
- Expanded operation will establish Butcherbird as a low-cost Mn operation with a US$2.76/dmtu C1 FOB cost – which will ensure sustainable profitability at lower manganese prices compared to the current pilot operation.
- Low capital cost of A$49.8M with annual operation cashflow of A$57.3M at full production – payback period of 14 months from start of operations.
- Study used all available Measured and Indicated Resources within the mine plan to support a 7.2-year mine life – which represents 36% of the total mineral resource inventory within granted mining lease M52/1074.
- E25 plans to undertake infill drilling in areas containing Inferred Resources, outside the current mine plan, within the next 12 months targeting an additional 20-25 years of mine reserves at the proposed production levels.
Battery Grade High Purity Manganese (HPMSM) Development – Louisiana USA
- E25 approved for US$57 million of tax incentives under Louisiana State’s Industrial Tax Exempt Program (ITEP).
- Two key international patents lodged under the Patent Co-Operation Treaty, expected to be processed in 2024.
Corporate
- Non-Executive Director John Ribbons was appointed Chairman following Seamus Cornelius’ decision to step down from E25 Board.
Click here for the full ASX Release
This article includes content from Element 25 Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.