An initial resource estimate for Canada Lithium‘s (CLQ-V) Quebec lithium project has management feeling positive about the potential for an open pit mine that would produce 40 million lbs. of lithium oxide per year over 30 years.
Located 60 km north of Val d’Or, Que., the project has measured and indicated resources totaling 31.6 million tonnes grading 1.11% lithium oxide and inferred resources of 38.9 million tonnes grading 1.12% lithium oxide.
The company points out the estimate tops both the original historical estimate of 15 million tonnes grading 1.14% lithium and its own conceptual target of 29-30 million tonnes grading 1.1-1.2%.
President and CEO Peter Secker projects the company could actually be mining a very short time.
“In less than two years we have advanced the Quebec lithium deposit into a project that could potentially sustain battery-grade lithium carbonate production of some 40 million pounds annually, for a period in excess of 30 years,” Secker in a statement.
The resource estimate was based on 506 drill holes. Most were historical, but 39 holes were drilled in 2009 by Canada Lithium.
The resources are comprised of a series of parallel, steeply dipping spodumene-bearing pegmatite dykes.
The deposit is about 1 km long and about 550 metres wide. Recent drilling has hit mineralization as deep as 430 metres.
The company plans to complete a prefeasibility study before the end of March and a feasibility study in early 2011. The prefeasibility is looking at the economics for reopening the past producing lithium mine as an open pit at a rate of 2,900 tonnes per day.
Canada Lithium has recently begun processing a bulk sample at a pilot plant that was assembled by SGS Lakefield. The purpose of the bulk sample is to both fine-tune the metallurgical process as well as produce battery-grade lithium carbonate samples for marketing purposes.
The company will do some extensional and infill resources definition drilling in the summer to better define the location of the spodumene-bearing pegmatites to both the northwest and the southeast on strike with the current resource.
Canada Lithium shares were down nearly 7% today, or 3¢ to 49¢ apiece on a trading volume of 1.4 million shares.
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