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Arizona Lithium (ASX:AZL) has announced its receipt of early-stage environmental permits to commence works on drillpad #2 at its Prairie Lithium Project (PLP). The inclusion of a well pad indicates the brine nature of the project.
Two wells are licenced for drilling at the exploration asset with the company asserting on Monday its ready to expand its overall drillpad count to scale-up operations. Lithium prices remain under pressure.
Pad #1 and #2, on a geotech basis, are expected to produce 2Kt per annum of lithium carbonate equivalent (LCE). The initial production target is 6Ktpa; Arizona stated “drilling and completion activities are underway at Pad #1” on Monday.
“The ability to have our second Pad location selected, approved and built is a testament to the jurisdictional advantages of operating in Saskatchewan,” Arizona Lithium MD Paul Lloyd said.
“This also highlights our strategy of developing Pad locations independent from one another and increasing production on a modular basis, which keeps our Capex lower to establish production, and keeps our surficial environmental impacts to a minimum and no long-distance pipelines to transport brine.”
The project is located in the Williston Basin in Canada with Arizona Lithium reporting a resource of 4.5Mt LCE on an indicated basis (a mid-confidence geological assessment.) The company notes well developed infrastructure in the immediate area suitable for haulage.
AZL last traded at 1.8cps.
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