Arizona Lithium's Major Discovery at Prairie Project
ARIZONA LITHIUM LIMITED (AZL) Share Update September 2024 Monday 23rd
Arizona Lithium Discovers New Lithium-Rich Formation at Prairie Project
Arizona Lithium Limited (ASX: AZL, AZLO, OTC: AZLAF) has made a significant discovery of lithium-rich samples in the Dawson Bay Formation at its Prairie Project, marking a crucial step towards commercial production.
Instant Summary:
- Discovery of lithium-enriched samples of 60 mg/L Li in Dawson Bay Formation.
- Successful drilling and testing of production and disposal wells at Pad #1.
- Exceeded expectations in disposal well testing with rates between 500-700m3/day.
- Plans to finalize facility design and begin construction in H1 2025.
- Commercial-scale lithium production expected to commence in H2 2025.
Discovery Details
Arizona Lithium Limited has announced the discovery of lithium-enriched samples in the Dawson Bay Formation at its Prairie Project. The samples, containing 60 mg/L of lithium, were obtained from Well #2 at Pad #1, which was drilled as an exploration well and later converted into a disposal well.
The Dawson Bay Formation lies directly below the Souris River Formation and had not been previously tested for lithium. This discovery represents a significant milestone for Arizona Lithium, as it expands the potential resource base of the Prairie Project.
Well Testing and Results
Arizona Lithium has successfully drilled and tested both a production well and a disposal well at Pad #1. The disposal well testing exceeded expectations, with disposal rates ranging from 500 to 700 cubic meters per day across four separate zones. These results surpassed the previously modeled rates from the company's Pre-Feasibility Study (PFS).
The successful testing of these wells is a critical step in the project's development, allowing the company to finalize the design of its production facility. Construction of the facility is planned for the first half of 2025, with commercial-scale lithium production expected to begin in the second half of 2025.
Future Plans
In addition to the ongoing development at Pad #1, Arizona Lithium plans to continue exploration into the Souris River and Dawson Bay Formations across additional pad locations in the coming months. These efforts aim to further delineate the resource and enhance the project's overall potential.
The Prairie Lithium Project is located in the Williston Basin of Saskatchewan, Canada, and holds a resource of 6.3 million tonnes of Lithium Carbonate Equivalent (LCE), with 4.5 million tonnes indicated and 1.8 million tonnes inferred. The project benefits from its location in a mining-friendly jurisdiction with access to key infrastructure, including electricity, natural gas, fresh water, paved highways, and railroads.
The discovery of lithium-enriched samples in the Dawson Bay Formation is a positive development for Arizona Lithium. It not only expands the resource base but also derisks the project by confirming the presence of lithium in a previously untested formation. This news is likely to boost investor confidence and could positively impact the company's stock price.
Investor Reaction:
Analysts are expected to react positively to this announcement, given the successful well testing and the potential for increased lithium production. The discovery aligns with the broader market demand for lithium, driven by the growing electric vehicle and renewable energy sectors.
Conclusion:
Investors should keep an eye on Arizona Lithium's progress as it moves towards commercial production. The company's ability to meet its construction and production timelines will be crucial in realizing the full potential of the Prairie Project. Subscribing to updates and staying informed about further developments will be key for those interested in the lithium market.