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(Kitco News) - Lithium producer Allkem (TSX: AKE) (ASX: AKE) today reported ore reserves update for its Mt Cattlin operation in Western Australia.
In a statement, the company said that ore reserves tonnage increased by 34% to 7.8Mt at 1.20% Li2O and 130ppm Ta2O5 at a cut-off grade of 0.4% Li2O, adding that ore reserves and planned mining schedule suggest a projected life-of-mine for the next 4-5 years (2027-2028) via open pit mining methods.
Allkem also noted that ore reserves have increased with higher grade despite mining depletion to support production.
“The recent category upgrades in the latest mineral resource estimate, and substantial increases in revenue pricing for spodumene concentrate have contributed to the increase in ore reserves,” the company said.
Allkem added it sees “significant opportunity” in transitioning to an underground mine including the unlocking of greater orebody extension potential and prolonging the life of mine.
An underground feasibility study is expected to be delivered by Q1 2024. It will enable a variety of scenarios to be modelled and will ensure an optimized future mining method is selected.
The Mt Cattlin open-pit mine and concentrator is located approximately two kilometres north of Ravensthorpe in the Great Southern region of Western Australia.
Operations recommenced at Mt Cattlin in late 2016, producing high-quality spodumene concentrate that is qualified in the lithium supply chain globally.
Allkem is a speciality lithium chemicals company with lithium brine operations in Argentina, a hard-rock lithium operation in Australia and a lithium hydroxide conversion facility in Japan. The company also develops the James Bay spodumene project in Quebec, Canada.
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