\u00a9 iStock\/xeni4ka<\/figcaption><\/figure>\nDrilling the Salar for lithium<\/h3>\n A critical part of the new plan was to first test for the presence of lithium-rich brine at depths of more than 200m in the Maricunga Salar. The initial drilling and project design was undertaken on resource and lithium concentration information gathered during an extensive drilling program only to that level. But the brine extends to greater depths. If this contained sufficient lithium to be converted into further mining reserves, then that would provide a strong foundation for substantial consolidation opportunities for LPI, MSB, and other parties on the Salar. Lithium Power International knew that rich lithium grades extended at depth because, in 2018, they had drilled one hole to 380m in depth.<\/p>\n
An Environmental Impact Assessment has already been completed for the initial project. It took two-and-a-half years to complete and was reviewed for 15 months by Chilean Government agencies before being approved in February 2020. A year before that, a Definitive Feasibility Study had been undertaken on the joint venture\u2019s tenements, not including those owned by Codelco. These Chilean Government approvals mean that the critical decisions about Stage One of the project now reside entirely with LPI and MSB. There is no need to repeat them. They took the opportunity to push forward with an initial, lower-cost project and consider expansion proposals at a later time.<\/p>\n
But first, however, deeper drilling needed to be completed to be sure that the lithium grades extended below 200m. The program involved reforming a highly credentialed technical team comprised of Worley, GEA Messo, Stantec and Atacama Water, among others, to update engineering work to resize and optimise the project to its revised output and specifications. This included reviewing the technical and economical design and, importantly, resizing and optimising the work to handle the new output levels. The special focus was on the option of using a new Stage One development as a starter project that could later allow rapid expansion.<\/p>\n
In February 2021, a new field programme started at Maricunga, comprising 2,400m of drilling. Analysis of the earlier deep drill hole showed a higher drainage porosity and permeability than brine nearer the surface. This has raised expectations that the life of any future operation could be raised to 20 years plus. For the first time in many months, Lithium Power International was able to mobilise people and equipment to the high altitudes of the Maricunga basin and get the project back on track.<\/p>\n
Over subsequent weeks, the results achieved by one drill hole after another were reported. The news was very encouraging. Late in April, three holes had been completed to depths of 400m, core samples were taken and then sent to the US for drainage porosity and further hydraulic testing. Another 56 samples were sent for chemical analysis, showing average lithium concentrations above 1,000 ppm and positive lithium, calcium, and magnesium ratios. By early July, the remaining two drill holes had been completed. Calculations showed an average lithium concentration of 989mg per litre across all of the drill holes, with a maximum amount of 3,375mg per litre. This confirmed that Maricunga was one of the richest lithium brine projects globally.<\/p>\n
By this time, people other than those toiling on the remote Maricunga drilling site were paying close attention. Preliminary indications of interest were being received from international financial institutions and private funds for debt financing and equity participation. This was aided considerably by the fact that just weeks earlier, LPI and MSB signed a strategic alliance with the large Japanese trading and investment company, Mitsui & Co, for the development of Maricunga and other possible lithium projects in Chile. The project was firmly back on course.<\/p>\n
This new alliance includes a potential off-take of up to 15,000 tonnes per year of high-purity lithium carbonate, battery-grade material for a minimum of ten years, with a possibility of extending for another decade. It also includes funding rights for Stage One, potential direct participation in the operation by Mitsui, off-take and funding rights for future expansions and collaborations on direct lithium extraction technology being studied and tested by the project\u2019s new partner.<\/p>\n
Much work remains before final commitments can be made. But the outlook is more promising now than at any time in the recent past. A new resource estimate is being calculated, taking in the information on the lithium resource in the newly drilled 200-400m zone. This will form a critical part of the updated definitive feasibility study for stage one. Expectations are for a sizeable expansion in the resource, in the range of 1.5 times to 1.8 times the size announced in 2019. The ongoing work has also brought several opportunities to light that can optimise the engineering of the project, which is expected to have the potential to reduce the capital costs of development. Initial indications of interest have been received from international financial institutions for debt financing and future equity participation. This is all assisted by a considerable uplift in global prices for lithium carbonate as electric vehicle and battery manufacturers scramble to secure reliable supplies.<\/p>\n","protected":false},"excerpt":{"rendered":"
Industry-leading energy company Lithium Power International (LPI) is advancing their Maricunga brine project in Chile, a significant enhancement to the lithium supply chain. Adversity often breeds innovation, and that is certainly the case with Lithium Power International\u2019s Maricunga brine project in the dry deserts of Chile\u2019s rich Lithium Triangle. Lithium Power International first experienced setbacks […]<\/p>\n","protected":false},"author":9,"featured_media":14119,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[596],"tags":[24203,24335,24161,24206,24209],"acf":[],"yoast_head":"\n
Lithium Power International: Pioneering the lithium supply chain<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n