Name of the Project
Prairie lithium project.

Location
Williston basin of Saskatchewan, Canada.

Project Owner/s
Arizona Lithium.

Project Description
Prairie holds a resource of 6.3-million tonnes comprising 4.5-million tonnes of lithium carbonate equivalent in the indicated category and 1.8-million tonnes in the inferred category.

A prefeasibility study (PFS) has reported initial production of 6 000 t/y, consisting of three inaugural well pads, each producing 2 000 t/y of lithium carbonate equivalent over a 20-year mine life.

The robust PFS economics for Phase 1 can be replicated, and additional modules will increase production to between 20 000 t/y and 25 000 t/y in Phase 2, and multiples thereof in Phase 3.

The Prairie project uses conventional oil and gas drilling and completion methods to access lithium-rich brine from aquifers about 2.3 km underground. 

Through direct lithium extraction (DLE) technology, the company will separate lithium from the brine. The extracted lithium concentrate will be converted on site to an upgraded high-purity material. The remaining lithium-depleted brine will be disposed of back underground into a different aquifer. The DLE process uses less land and fresh water while generating less waste, in comparison to hard-rock and evaporation mining.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
In the base case, the project has a pretax net present value, at an 8% discount rate, of $448-million and an internal rate of return of 23.9%, with a payback of 2.2 years.

Capital Expenditure
Phase 1 – $290-million, including contingency.

Planned Start/End Date
Initial production is slated for the first half of 2025.

Latest Developments
Arizona Lithium has announced it will raise A$11-million in cash by selling noncore acreage and data at the Prairie lithium project to Homestead Energy.

Homestead is a Saskatchewan-based privately owned and operated oil and gas company.

Arizona Lithium will divest of 16 200 ha of crown mineral titles and about 4 700 net acres of freehold mineral titles, alongside data from the project.

The divestment, the company has said, represents a small undeveloped portion of the 156 000 ha that it holds as part of the Prairie project.  

Proceeds from the transaction will be used to advance the development of Arizona’s core acreage and undertake more work towards its stated goal of commercial production at the Prairie project next year.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Arizona Lithium, tel +61 8 6313 3936 or email info@arizonalithium.com.