Nevada lithium deposit into potentially one of the world’s largest strategic, scalable and reliable sources of high quality lithium carbonate.
Western Lithium has completed a positive Pre-feasibility Study for its wholly-owned Kings Valley Lithium Project in Nevada, USA. The study demonstrates that the project could produce lithium carbonate at an estimated average cash cost, net of by-product credits, of $968 per tonne once full production of 26,000 tonnes per year lithium carbonate is achieved. Initial startup capital, including contingency is expected to be approximately $248 million. The study was undertaken by a collaboration of independent industry specialist firms including Tetra Tech, Inc. (Tt), Reserva International, LLC and K-UTEC AG Salt Technologies (K-UTEC). The study has been prepared in accordance with Canadian securities National Instrument 43-101 and Form 43-101F1 regulatory requirements.
Western Lithium is currently focused on its commercial clay strategy with the goal of becoming a specialty supplier of Hectatone™ clay based drilling additives to the oil and gas industry. Over the past several years, the oil and gas industry has seen strong growth from unconventional shale gas drilling in the USA. Hectorite clay based drilling additives are particularly applicable for unconventional shale drilling due to their thermal and gelling properties that can improve performance when developing deep deposits that require horizontal drilling. To make organoclay, the Company is designing and building an organoclay plant in Fernley, Nevada. The plant is expected to be commissioned in the Spring, 2014. Organoclay typically sells in a range of US$2,000 to $4,500 per short ton, depending on performance. The Company believes that continued growth of shale gas drilling in the USA combined with a global push towards developing shale gas resources will provide strong growth for Western Lithium’s strategy to build a specialty drilling additives business.
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