Lithium Americas to Include Potash Production at Its Cauchari-Olaroz Lithium Brine Project
24.10.2011 | Marketwire
- Potash output estimated to be 2 tonnes of potash per tonne of lithium carbonate- 1.5 tonnes of potash rich salts have been harvested from the Company's on-site evaporation ponds
- Potash salts have been sent to the Saskatchewan Research Council for metallurgical testing
- Potash benefits to be included in definitive Feasibility Study - expected to improve already robust project valuation
TORONTO, ONTARIO -- (Marketwire - Oct. 24, 2011) - Lithium Americas Corp. (TSX: LAC) (OTCQX: LHMAF) ("Lithium Americas" or the "Company"), is pleased to announce that its potash tests have yielded positive results, thereby confirming that potash will be included in the upcoming definitive Feasibility Study ("DFS"). The Company has harvested approximately 1.5 tonnes of potash rich salts from its on-site evaporation ponds, which have now completed a full evaporation cycle at its Cauchari-Olaroz lithium brine project.
"The commercial potential of the Cauchari-Olaroz resource continues to increase as we further define its productive capabilities," stated Dr. Waldo A. Perez, President and CEO of Lithium Americas. "The inclusion of potash diversifies our production base and is expected to add significant value to the project. We hope to define the commercial viability of other by-products of the brine production process, such as boron, during the completion of the DFS process."
A total of 300 kilograms of the harvested salts have been sent to Saskatchewan Research Council's laboratories in Saskatoon, where mineralogical analysis and floatation testing will be performed. The objective is to produce potassium chloride at 95 percent purity, which can then be sold as a fertilizer. Test results are expected in the fourth quarter of 2011.
The Preliminary Economic Assessment filed by the Company in May 2011, completed by the independent engineering firm ARA WorleyParsons, identified annual lithium carbonate production of 40,000 tonnes – built in two equal phases of 20,000 tonnes per annum. As such, Lithium Americas is anticipating approximately 80,000 tonnes per year of potash production once both phases are complete. The particulars will be included in the definitive Feasibility Study, being prepared by ARA WorleyParsons, and expected to be completed in the second quarter of 2012.
About the Company
Lithium Americas is developing one of the world's largest and lowest cost lithium operations. The Company has defined the world's third largest lithium brine resource. A Preliminary Economic Assessment prepared by independent engineering firm ARA WorleyParsons indicates that Lithium Americas' operating cost per tonne of lithium carbonate is US$1,434 (prior to expected potash by-product credit), based on available industry information; this would make Lithium Americas the world's lowest cost lithium producer. The Company is currently working on completing a definitive Feasibility Study. Mitsubishi Corporation and Magna International are shareholders in the Company, in addition to both companies having off-take arrangements with Lithium Americas.
Roger Kelley, B.Sc. (Chem. Eng.), of ARA WorleyParsons and independent QP of the Company has reviewed and approved this press release.
The Preliminary Economic Assessment is based on mineral resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
This press release contains forward-looking statements, which can be identified by the use of statements that include words such as "could", "potential", "believe", "expect", "anticipate", "intend", "plan", "likely", "will" or other similar words or phrases. The Company does not intend, and does not assume any obligations, to update forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by applicable securities laws. Readers should not place undue reliance on forward-looking statements. Readers should review the Company's annual information form dated May 30, 2011 for a list of risks associated with the Company, and its business.
Contact Information
Lithium Americas Corp.
Mike Cosic, VP Corporate Development
416-360-1921
mcosic@lithiumamericas.com
www.lithiumamericas.com