Lithium Americas (TSX:LAC)(OTCQX:LACDF) is pleased to provide an update on the Cauchari-Olaroz Lithium Project (the “Project”) joint venture with Sociedad Química y Minera de Chile S.A. (“SQM”) in Jujuy Province, Argentina. Further to the Company’s news release dated August 26, 2016, the Board of the joint venture company, Minera Exar S.A. (“Minera Exar”), has been … Continued
Further to the Company’s news release dated August 26, 2016, the Board of the joint venture company, Minera Exar S.A. (“Minera Exar”), has been authorized to proceed with development planning for the Project based on the following parameters: (i) a two stage development consisting of an initial phase at 25,000 tpa LCE capacity, followed by a second stage at 25,000 tpa LCE capacity; and (ii) an accelerated path to production, with a target for commencement of construction in early 2017 and stage one production in 2019. Detailed engineering is advanced on the layout of ponds and the chemical plant flow sheet process has been defined by SQM and Hatch Canada. The Company has been advised that an update of the NI 43-101 compliant feasibility study for stage one is anticipated to be completed by year end.
The exploration program is rapidly advancing the Project to the pre-construction phase. Testing of liner materials and trials of earth moving equipment is on-going and is scheduled for completion by the end of November. Various combinations of different materials and liner configurations are being tested in ten ponds to optimize the technical and economic design and performance. Earth moving trials are underway to finalize the optimal construction methodology. Final topographical reports have been completed defining materials characteristics in different areas of the project. A second series of tests in soil mechanics are underway to determine the most efficient area to build. Construction of the project roads and 14 drill platforms is expected to be completed by the end of November. The Project campsite is being expanded with the addition of modular accommodations for 52 people.
The Company is also advancing the discussions to raise the project capital with both financial institutions and potential industry offtake partners for long-term supply contracts.
Tom Hodgson, Chief Executive Officer of LAC, commented, “We wanted to provide this update to our stakeholders and make them aware of our significant progress in developing the Project. This progress demonstrates the strong confidence of the Company’s management and our 50/50 joint venture partner SQM, as well as a high level of cooperation between our management teams. The Minera Exar joint venture is committed to advancing the Cauchari-Olaroz Project to bring new lithium supply to the market in a timely manner to meet the increasing demand.”
About the Company
The Company is developing the Cauchari-Olaroz Lithium Project, located in Jujuy Province, Argentina, and the Lithium Nevada project (formerly Kings Valley project) in Nevada, USA, with the intent to become a major supplier of lithium products. In addition, Lithium Americas is a supplier of specialty drilling additives, Hectatone™ and other organoclay products for the oil and gas and other industries.
Statements in this release that are forward-looking information are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in the Company’s periodic filings with Canadian securities regulators. Forward-looking information in this news release includes: timing and results of the development plan at the Cauchari-Olaroz project; timing for release of a NI 43-101 technical report on the Cauchari-Olaroz project; timing and terms of the capital raising process; timing and results of current development work on the Cauchari-Olaroz Project. When used in this document, the words such as “anticipate”, “explore,” “believe”, “intent”, “schedule”, and similar expressions is forward-looking information. Information provided in this document is necessarily summarized and may not contain all available material information.
All such forward-looking information and statements are based on certain assumptions and analyses made by Lithium Americas management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. These statements, however, are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information or statements. Important factors that could cause actual results to differ from these forward-looking statements include those described under the heading “Risks Factors” in the Lithium America’s most recently filed Annual Information Form and other continuous disclosure filings. The Company does not intend, and expressly disclaims any obligation to, update or revise the forward-looking information contained in this news release, except as required by law. Readers are cautioned not to place undue reliance on forward-looking information or statements.
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