Alliance Mineral Assets shaw its share price skyrocket 18.18 percent on the ASX on Thursday after the news hit.
Alliance Mineral Assets (ASX:A40) has achieved record monthly lithium production at its Bald Hill lithium-tantalum project in Western Australia.
In January 2019, the company produced 13,160 tonnes of lithium concentrate at an estimated grade of 6.15 percent lithium oxide (Li2O).
Bald Hill processed 131,400 tonnes of ore at an average rate of 237 tonnes per hour, putting it 30 percent above nameplate capacity and 23 percent higher than throughput in December 2018.
With a head grade of 0.93 percent Li2O and gross recovery of 64.2 percent, January’s lithium concentrate production was 28 percent higher than December 2018.
“Lithium concentrate production for January 2019 was up 28 percent on December 2018 total production and is an excellent start to the current quarter. The quantity of lithium concentrate shipped over the last week is also a record for Alliance,” Alliance Managing Director Mark Calderwood said in a statement.
The company shipped 20 tonnes of tantalum grading approximately 30 percent tantalum pentoxide (Ta2O5) in January. Shortly afterwards, Alliance sent off 23,232 wet metric tonnes of lithium concentrate on February 2 and 3; it is expected to bring in AU$26 million in revenue.
Alliance is planning to ship an additional 20 tonnes of tantalum, also grading 30 percent Ta2O5, on Friday (February 8). Going forward, the company intends to also ship — or prepare for shipment — 30,000 tonnes of lithium concentrate during the March 2019 quarter.
“A number of requests for lithium concentrate are currently being reviewed and we expect to ship, or have ready for shipment an additional 30,000 tonnes of premium quality lithium concentrate during the quarter. Interest in long term off take for Bald Hill’s high-grade lithium concentrate remains strong,” Calderwood added.
Lithium concentrate guidance for the half year to June 30 is still docketed at 65,000 to 80,000 tonnes.
Bald Hill was formerly a 50/50 joint venture between Alliance and Tawana Resources; however, the two companies merged in December 2018, making Alliance the sole owner and operator.
Alliance’s share price skyrocketed 18.18 percent on the ASX on Thursday (February 7), closing the trading day at AU$0.195 per share.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.