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Canada Lithium Corp released an announcement that the company has produced battery-grade lithium carbonate samples to send to potential customers for testing, surpassing industry standards.
Canada Lithium Corp (TSX:CLQ) released an announcement that the company has produced battery-grade lithium carbonate samples that surpass industry standards to send to potential customers for testing.
The junior miner, which owns 100 percent of the Quebec Lithium project in northwest Quebec, said that it had processed 99.9 percent pure lithium carbonate in its test facility. This exceeds the applicable industry standard of 99.5 percent purity required to achieve battery-grade standard.
Canada Lithium Chief Executive Officer Peter Secker was extremely optimistic about the release, “The quality of this latest batch…demonstrates that the Quebec Lithium Project consistently yields samples in excess of battery-grade standards set by international battery manufacturers.”
Canada Lithium said it will send the samples to customers in North America, Asia and Europe with plans to build an open pit mine and processing facility at the project site in Lacorne Township, Quebec, about 600 kilometres northwest of Montreal. A feasibility study is anticipated to be completed in the first quarter of 2011 followed by a projected time line to production by late 2012 at an annual production rate of 42.6 million pounds of battery-grade lithium carbonate from the mine and processing operation. The on-site lithium carbonate production facility being contemplated will treat an estimated 1.2 million tonnes per year of crushed pegmatite ores to produce an intermediate 6.5 percent spodumene product that will be upgraded, on site, to produce the battery grade lithium carbonate. The company expects a minimum 15-year mine life with potential upper limit of 50 years pending the outcome and analysis of the study.
Successive announcements for grants to 48 new advanced battery and electric drive developments under the American Recovery and Reinvestment Act may provide a fertile investment environment for North American lithium projects. With strong policy driven support for the electric and hybrid automotive industry demonstrated by the US, Canada Lithium might benefit strongly from supplying the anticipated demands for proximal battery manufacturers. The company already has an agreement with Japanese metals trading firm, Mitsui and Co. Ltd., to market a portion of Canada Lithium Corp.’s product in China, Korea and Japan.
Organizational Changes
Last week the company announced that it appointed a new Chief Operating Officer and Chief Financial Officer. The successful recruitment of former IAMGOLD (TSX:IMG) vice president, Charles Taschereau and former Corporate Controller with FNX Mining Company Germaine Coombs, underscores the confidence of Canada Lithium in advancing the Quebec Lithium Project.
Strong Market Support
Canada Lithium share prices received a 14.75 percent increase on Tuesday, as the market demonstrated approval of the positive press release. The Byron Capital Markets representative Lithium Index was slightly positive showing an improvement of 1.59 percent and the broadly based Toronto Stock Exchange showed a slight decline of 0.02 percent over the previous day’s session. Canada Lithium is currently trading in the 70 cent range and the company has been the recipient of positive news developments following the successful listing on the Toronto Stock Exchange in June.
Regional Investment Climate
In Fraser Institute’s Survey of Mining Companies: 2010 Mid-Year Update,Quebec was slightly downgraded from the leading position it has enjoyed for three years in a row to third best place in the world for mining investment. The survey is based on the opinions of mining executives representing 429 mineral exploration and development companies on the investment climate of 51 jurisdictions around the world and was conducted following the global recovery in commodity prices and the introduction of new regulatory hurdles and taxation in many jurisdictions. Miners’ confidence in the province has been marginally shaken by increases in mining taxes that were announced without consultation in Quebec’s spring budget and appears to reflect some concerns about Bill 79, a review of the province’s mining law, and could be seen as a blow to its reputation for offering stable government policies.