It's good news for Avalon. After more testing, the company estimates there's 10 per cent more lithium at Separation Rapids than previously thought.
Avalon is hoping to have their preliminary economic assessment complete by the end of June. The share price closed at 11 cents Friday.
According to their current model, the company contemplates a staged development approach. A Phase 1 plant would be capable of initially producing 75,000 tonnes per annum of lithium mineral concentrate for sale (petalite), as an industrial mineral product to consumers in the glass industry. This would be in addition to a further 40,000 tonnes per annum of lepidolite concentrate for sale to lithium chemical producers.
Once scaled up, the company says this plant would produce almost 180,000 tonnes per annum of lithium mineral concentrate. The plant will also have the potential to produce a feldspar concentrate by-product for other markets.
Further, Phase 2 of the project would involve a demonstration-scale hydrometallurgical pilot plant to begin producing trial quantities of the lithium battery material derivative product (lithium hydroxide or carbonate) for evaluation by potential end-users. Following acceptance of the product in the market, the company says it would then proceed with a scale-up of the hydrometallurgical plant in Phase 3 to produce up to 10,000 tonnes per annum of lithium battery materials in addition to continuing to serve its other customers with industrial mineral products.
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