MGX Minerals (CSE:XMG) announced receipt of the initial capital expenditure report for a lithium carbonate production plant from engineering consultant Cementation AG.
MGX engaged Cementation AG to analyze extraction of minerals from the heavily mineralized brine within the Fox Creek and Swan Hills areas, which are part of the Company’s portfolio of Alberta lithium properties. Cementation AG formulated a detailed initial CAPEX budget based on quotations from potential vendors in addition to applying in-house expertise and experience. The CAPEX plan provides a positive basis for the Company to proceed with engineering of an initial 20,000 bpd (barrels per day) lithium carbonate production plant.
Scoping Study Highlights
Further details of the proposed process and production plant design are provided as follows:
- Reduction of production time of lithium carbonate by greater than 99% over current traditional brine production – 1 day versus 18 months;
- multiple end market products including lithium carbonate, sodium chloride and calcium chloride with potential for addition of boron and bromine production;
- strategic sourcing of reagents and energy to reduce input costs;
- application of energy efficient technology to significantly reduce potential operating expenditures (OPEX); and
- utilization of existing oil and gas infrastructure and expertise to reduce CAPEX and OPEX.
The Study includes flowsheet recommendations and operational expenditure (OPEX) calculations to process lithium-bearing brine of 20,000 bpd (barrels per day) in a commercial plant. The process is designed to rapidly separate brine minerals to produce various industrial mineral compounds. The Study also includes a metallurgy testing protocol. MGX is currently evaluating metallurgical laboratories for bench testing of the proposed process. As a result of the positive CAPEX report, Cementation AG has provided a 6-month engineering and development project plan to follow metallurgy testing for the detailed engineering of the proposed lithium carbonate plant.