Plateau Uranium's Lithium Resource Estimate Adds to Green Energy Metals Portfolio

It isn’t every day that one of the world’s heaviest metals is found in the same rock as a very light metal. But uranium-focused Plateau Uranium (TSXV:PLU) has done just that at the Macusani deposit.
On Tuesday, Plateau unveiled a mineral resource estimate for the lithium mineralization found alongside the uranium mineralization at four of its 14 uranium deposits.
Calculated within the defined uranium resource using a 75-ppm uranium cut off, the project has an indicated lithium resource of 52.3 million tonnes at 0.13 percent containing 67,000 tonnes of Li2O; meanwhile, it has an inferred lithium resource of 87.7 million tonnes at 0.12 percent containing 109,000 tonnes of Li2O.
According to Plateau, “[b]y-product lithium production has the potential to add value to the Company’s compelling uranium story that already has lowest quartile potential operating costs of $17.28/lb U3O8.” Plateau also notes in Tuesday’s release that the average potassium grade for the lithium resource estimate is 3.71 percent in the indicated category and 3.73 percent in the inferred category.

Commenting on how the two metals will help the company’s position in Peru, Plateau CEO Ted O’Connor told the Investing News Network, “the Peruvian government understands the green house gas emission-free energy that nuclear provides, and is supportive of future uranium production in the country. The proposition of extracting lithium as a by-product only strengthens global green energy benefits if the lithium proves to be a solid economic proposition.”
O’Connor also believes that the combination of uranium and lithium could attract new interest from potential partners, investors, producers and even end users. As an example, he pointed to nuclear utilities: “be they government or private, enterprises are actually energy companies with a variety of electrical generating methods in their electricity mix. With increasing amounts of renewables requiring lithium battery technology for storage during low generating periods, these utilities would have an added interest to see such a project developed.”

Lithium plans

Internal test work on the lithium mineralization at Macusani confirms that it can be successfully leached with sulfuric acid. The company anticipates that lithium carbonate and potassium sulfate will be the potential products precipitated from the leach solutions using the leaching process; however, more engineering and testing is required in order to truly assess the possible impact to project economics.
That said, O’Connor explained that Plateau has plans to “complete additional extraction leach tests to improve recoveries and understand the leachable lithium, leach kinetics and optimize leach conditions.” This work will provide the company with a much clearer idea of the technical inputs required in order to establish the potential operating costs and additional capital requirements in adding a lithium extraction circuit.
“The rock would be mined and processed for uranium already, and adding a lithium extraction circuit to process this material prior to being stored in a tailings facility should add value to the project,” he added.

What about uranium?

Plateau Uranium’s current investor base has no doubt been attracted to the company based on its uranium holdings. Indeed, since the release of a January preliminary economic assessment for Macusani, which highlights life-of-mine average cash operating costs of US$17.28 per pound of U3O8, Plateau has made a name for itself as a uranium junior.
Some may thus be concerned that Tuesday’s lithium news is a sign that the company is shifting focus. However, O’Connor was quick to quell any fears, stating, “Plateau Uranium is a uranium company — full stop.”
“Our focus is developing our robust uranium project first and foremost; however, if by-product lithium extraction and production proves to be economic, we need to pursue this further on behalf of our shareholders. I believe investors, regardless of commodity focus, will understand, appreciate and indeed support pursuing lithium to enhance shareholder value.”
Following the news, Plateau Uranium’s share price was up 7.14 percent, trading at $0.38.
 
Securities Disclosure: I, Vivien Diniz, hold no direct investment interest in any company mentioned in this article. 
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Plateau Uranium is a client of the Investing News Network. This article is not paid-for content.