Key Points
Development
-- Karibib Phase 1 concentrator Front End Engineering and Design (FEED) revisions completed that support both improved operability and a capital efficient doubling in throughput, with inputs established for the Phase 2 Scoping Study
-- Phase 1 chemical plant Process Design Criteria (PDC) finalised, which incorporates design improvements based on operating data from demonstration plant pilot campaigns, engineering risk assessments and third-party major mechanical equipment vendor testwork; control estimate well advanced and targeted for mid-August with FEED complete September
-- LOH-Max® raw lithium hydroxide and by-product pilot campaigns completed; final stage lithium hydroxide refining to complete imminently
-- Non-process infrastructure development at KIZAD chemical plant site well advanced; architectural design of non-process buildings has started, design of the process buildings to start on completion of FEED
-- Major supply and construction contracts, which are not on the critical path are advancing as per schedule; commercial green hydrogen supply now expected in 2025-‘26 at KIZAD
-- Helikon 4 infill drilling returns broad intercepts of lepidolite mineralisation, including 40 m @ 1.08% Li2O and 20 m @ 1.16% Li2O; weighted average intercept grade of 0.60% Li2O from new drilling versus the Helikon 4 Inferred Resource grade of 0.38% Li2O; revised Mineral Resource estimate due September 2022 to inform Phase 2 Scoping Study
-- Further drilling planned at Helikon 2, 3 and 4 to follow up on these excellent results
Products & Marketing
-- Commercial negotiations well advanced with Tier 1 consumers for lithium hydroxide supply under the binding Traxys agreement for 100% of annual Phase 1 production for seven years
-- Caesium supply negotiations well advanced with growing interest for both sulphate and hydroxide
-- LOIs signed with UAE customers for 100% of annual production of all Phase 1 bulk products: amorphous silica, Sulphate of Potash (SOP) and gypsum residue; for zero solid process waste
Corporate and Finance
-- Well-funded with cash and equivalents as at 30 June 2022 of $8.0 million and no debt
-- Executive team expanded with General Manager Sustainability & Country Affairs Namibia starting during the quarter; recruitment of two General Manager Operations, one for Namibia and the other for the UAE, and Project Director completed with all positions due to commence during the September quarter
-- Updated Letter of Interest and term sheet from U.S. International Development Finance Corp. (DFC) provided with legal due diligence to commence incorporating commercial lender input
For more information, download the attached PDF.
Download this document
