Southern Hemisphere Mining has wasted no time in getting down to work on its new Lago lithium project in Chile, within an area that is part of South America’s renowned “Lithium Triangle”.
The company’s new project is within spitting distance of SQM Lithium’s big brine operation and consists of nine concessions that will target brines compatible with “direct lithium extraction (DLE)” technology. DLE is an innovative, more efficient and environmentally-friendly extraction process.
Direct extraction refers to a growing suite of technologies that directly extract lithium salt from brine through processing, rather than the existing method which utilises the sun’s heat to dry out the lithium brine after it has been distributed into massive ponds.
Southern Hemisphere’s new concessions cover an area of about 27 square kilometres and sit adjacent to two of the world’s biggest lithium operators – SQM and Albemarle – in the celebrated Atacama region of Chile in South America.
The company has promptly engaged an expert Chilean geological consultant to manage the Lago project development and work has already started to ascertain the scale of the venture. Management says the early stages in brine exploration will be low cost and quick to advance.
The initial focus will target brines potentially amenable to both DLE and conventional solar evaporation. DLE avoids the need for large solar evaporation ponds, which are typically used in the concentration of lithium brines, in addition to reducing the use of fresh water. Additional benefits also include a potentially faster lithium extraction time, reduced environmental impact, scalability and high-purity lithium production output.
Geological modelling of the area around Southern Hemisphere’s new project, completed by SQM and based largely on core data, suggests the brine is contained within pore spaces in the evaporitic rock. The brine is essentially lithium-rich groundwater and is returned to surface through drilling and production techniques similar to those used in the oil-and-gas industry.
Once at surface, the direct extraction process pulls the brine into a processing unit and through a series of chemical processes to separate the lithium from waste, then reinjects the waste underground, leaving a battery-grade lithium product ready for sale.
Earlier this year, the Chilean Government announced a broad restructuring of the lithium industry in Chile that will see it partner with local leaseholders. However, private companies producing lithium in Chile have to adopt the direct extraction method in order to partner with the government and operate in that country.
While direct lithium extraction technology is relatively new, more companies are announcing successful trials, including Vulcan Energy Resources and Lake Resources. It seems it may be the new go-to technology for lithium brine producers.
Is your ASX-listed company doing something interesting? Contact: office@bullsnbears.com.au
Comentários