The company's proposed Maricunga Stage One has a nameplate capacity of 15,000 tonnes-per-year of lithium carbonate production, with significant future expansion potential from subsequent stages. The Maricunga project, the highest-grade, undeveloped lithium project in
Maricunga Stage One Update
A new field program will be undertaken from
The target is to expand the current resource, which is from near surface to 200m depth, to include the interval between 200m and 400m. Drilling for the project's DFS established that there was a thick sequence of volcaniclastic material beneath gravel and near surface clay units in the 'Old Code' concessions. This zone has high drainable porosity and permeability that is considerably higher than near surface units. Expansion of the resource would result in expansion of the project brine reserve, potentially supporting a 20 year-plus mine life for the project.
Drilling contracts have been awarded to international companies
Additionally, conceptual and numerical hydro-geological models including LEAPFROG, SGeMS and FEFLOW will be updated by Atacama Waters (formerly FloSolution) with the new exploration information and all existing information from the 2019 Definitive Feasibility Study. That would allow the existing resources and reserves within the 'Old Code' concessions to be fully revised.
An updated Definitive Feasibility Study will then be prepared by Worley and GEA Messo in accordance with JORC and NI 43-101 international standards.
In parallel with this Stage One work, MSB will continue to evaluate and progress alternative development plans for the subsequent stages with Codelco, potential other parties and the Chilean authorities. The aim of these subsequent stages is to continue with the original strategy to consolidate the Maricunga Salar by developing the remainder of its mining concessions, known as 'New Code' concessions, to provide substantial organic growth for the project.
Activities associated with engineering and financing will continue, complementing the adjustments on the Stage One design of the project and to ensure continuity in fast-tracking the development timeline through 2021.
Stage One Working Plan
Drilling Program
Five diamond core exploration holes to 400m depth. The boreholes once completed will be habilitated as monitoring wells, with 3-inch diameter slotted and blank PVC casing to selected depth intervals.
Brine porosity samples will be collected during the core drilling at 24m depth intervals in the 0m - 200m interval and 12m intervals between 200m - 400m.
Update of the Conceptual and Numerical models
The conceptual hydro-geological model for the Salar will be updated with the new information obtained from the field program. It will include the LEAPFROG geological model for the updated resource estimate and the updated numerical model configuration.
The SGeMS 3D lithium concentrations distribution model will be updated with the new drainable porosity data and brine chemistry analyses, and will be used to prepare an update on the Resource estimate from the 2019 DFS for the 'Old Code' concessions to a depth of up to 400m. Reporting will be done according to JORC and NI 43-101 international standards.
The FEFLOW hydro-geological model will be updated with the new LEAPFROG geological model and the updated 3D distribution of drainable porosity. The bottom of the FEFLOW model will be extended to the bedrock contact, based on the exiting geophysical data form the 2019 DFS (AMT and gravity). The model will be re-calibrated in Steady State and in Transient State using the results of the P-5 pumping test. The updated 3D distribution of lithium concentrations from the SGeMS model will be used as the initial condition for the transport simulations. The updated model will then be used to carry out predictive simulations for brine production scenarios from the 'Old Code' concessions only, optimise wellfield configurations and production schedules and to evaluate potential effects from the brine production within the restrictions set out in the Project's RCA environmental permit awarded in
Finally, a new lithium reserve estimate will be prepared according to JORC and NI 43-101 international standards for the 'Old Code' concessions to support the 15,000 tonnes per annum production of lithium carbonate for 20 years.
Definitive Feasibility Study (DFS) update
GEA Messo will update the Basic Engineering (BE) for a 15,000 tonnes per annum capacity plant and reconfirm the process plant equipment flowsheet.
Worley will update for all the other disciplines of the plant, evaporation ponds, utilities and facilities incorporating GEA's BE information.
Economics for the Stage One will include an update of the lithium price estimates and will complete the DFS Report expected to be released by
To support drilling and other future site activities the existing MSB camp has been expanded, to accommodate contractor personnel. The temporary camp will continue to operate until project construction activities begin.
Additional water exploration
A new water supply exploration well will be drilled in the area to potentially have an alternative supply to the existing CAN-6 well for the project. Despite fresh water supply have been secured with the existing CAN-6 well, it's deemed strategically important to explore for further water sources as alternative/backup. The well will be drilled as a large diameter production well, with an installed surface casing diameter of 24 inches. The water well will be drilled to a depth of up to 200m. Following installation and cleaning, the well will be subject to a 30-day pumping test to confirm the aquifer characteristics and the size of pump which is optimum for operation of this new well.
'We are pleased to announce that work program is already underway for the Maricunga Stage One strategy. Building on the already extensive technical work will not only let us significantly expand the current resource, but also strengthening the profile of the project. Our world class group of technical partners have mobilized already and we look forward to providing regular updates on the progress. In addition, and in line with the current market interest, we continue evaluating strategic and financing alternatives to maximize the value of the Project for its shareholders.'
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Contact:
Tel: +1 604 262 8835
Email: gplayford@bearinglithium.com
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