Bacanora Announces Off-Take Negotiations and Project Update
Bacanora Minerals Ltd. (TSX.V: BCN) ("Bacanora" or the "Company") announces that it is continuing to develop a long term marketing relationship and off-take strategy and is now in advanced discussions with a significant Asian offtake partner for the supply of battery grade lithium carbonate (Li2CO3).
As demonstrated in the Pre-feasibility Study announced in Q1 2016, the Company anticipates commissioning an operation capable of delivering 17,500 tonnes per year of battery-grade Li2CO3 for the first two years, following which it anticipates expanding its operations to 35,000 tonnes Li2CO3 per year. The Company is planning to commence production of Li2CO3 in 2019.
The ongoing Feasibility Study ('FS') continues to focus on optimising the process flow sheet for the production of battery grade lithium carbonate. As part of this, the Company is delivering a strategy to optimise the projects operating costs and energy requirements given the continued strengthening in reagent input costs. With this in mind, the Company now believes it will take longer than originally anticipated to ensure that the optimum energy supply for the kiln is selected, and therefore the FS is now expected to be completed in the summer of 2017. Rising costs are relevant to all Bacanora's peers, and importantly, are being experienced in tandem with a rise in lithium carbonate pricing.
Bacanora Executive Chairman Mark Hohnen said, "Securing an offtake partner is a key component in our strategy to commercialise our large scale, long life lithium deposit at Sonora. We are therefore encouraged by these advanced discussions which, in our view, provide third party validation of the processing route we have put in place at our pilot plant, where battery grade lithium carbonate has been produced continuously for over six months. In tandem with securing an offtake partner, work continues on our FS to minimize any impact on our development schedule. With the completion of the FS in 2017, the year ahead is anticipated to be a transformational one for Bacanora, characterised by the development of this world class asset."
Bacanora is a Canadian and London listed minerals explorer (TSX VENTURE:BCN)(AIM:BCN). The Company explores and develops industrial mineral projects, with a primary focus on lithium. The Sonora Lithium Project, which consists of ten mining concession areas covering approximately 100 thousand hectares in the northeast of Sonora State. The Company, through drilling and exploration work to date, has established an Indicated Mineral Resource (in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101")) of 4.5 million tonnes (lithium carbonate equivalent) and 2.7 million tonnes Inferred. A Pre-Feasibility Study completed in Q1 2016 demonstrated the positive economics associated with becoming a 35,000 tpa lithium carbonate and 50,000 tpa SOP producer in Mexico. The Company is led by a team with lithium expertise which have proven mine development, construction and operational experience.
Source: Bacanora Minerals