Olaroz Lithium Project Construction Update
Brisbane, April 9, 2014 AEST (ABN Newswire) - Orocobre Limited (
ASX:ORE) (TSE:ORL) ("Orocobre" or "the Company") is pleased to advise progress on construction of the flagship Olaroz Lithium Project. In terms of physical progress the construction program is approximately 85% complete. A total of approximately US$194m has been spent or committed via executed contracts in the construction project to date.
Highlights
- Construction 85% complete. Lithium carbonate plant is the main outstanding work area to be completed.
- Brine pumping flow rates currently running at long term requirements of 180l/s. Peak flow rates of 220l/s for brine stock build up to be achieved in early May.
- Thick continuous sand plus halite aquifer intersected in the first hole drilled beneath the current defined resource at Olaroz.
- Gas Atacama gas branch line connection was commenced in March and is expected to be completed within the next month.
- Construction projected to be completed on budget with the first commercial production of lithium carbonate projected to be the end of August 2014.
Pumping and hydrogeology
Daily production of 180l/s of brine is being maintained with approximately 125 l/s from the northern bore field and 55 l/s from the southern bore field. Brine supply from the southern bore field is currently limited by undersized transfer pumps at the TK-200 transfer ponds and 3 bores are currently off line in the southern field.
Correctly sized pumps are expected to be installed by May at which time peak filling rates of approximately 220 l/s will be achieved to build up brine stocks.
As part of the bore field development one bore was drilled to 304 m, the deepest hole to date by the company in Olaroz. Resource drilling was previously only carried out to a maximum depth of 200 m, with the resource only extending to a depth of 197 m below surface. This hole intersected a continuous sand plus halite aquifer from 255 m to the end of the hole at 304 m. Pumping tests have confirmed good hydrogeological properties and a high brine grade, averaging 770 mg/l Lithium during the pump testing. The significance of this previously unknown thick sand sequence is that it may extend laterally beneath much of the defined brine resource and contain a significant additional, and un-estimated, volume of lithium-bearing brine. The complete vertical thickness is currently unknown as the hole ended in sand at 304m. Previous geophysical surveys conducted by Orocobre have suggested the Olaroz salar deposits may extend to a possible 600 m deep.
Other construction points of note:
The gas branch line connection from Gas Atacama was commenced in March and is expected to be completed and commissioned within the next month.
Electrical components for the installation and commissioning of the reverse osmosis plant are expected to be delivered in April.
Construction works continue on the lithium processing plant, finished goods warehouse and the soda ash warehouse.
The Company continues to follow the "Jujuy First" strategy to successfully work with suppliers and the employment bureau to focus on the hiring of local people from the communities of Olaroz, Huancar, Puesto Sey, Pastos Chicos, Catua, Susques, Jama, El Toro, Coranzulí, San Juan and Abrapampa.
The project implementation is through EPCM (Engineering, Procurement and Construction Management) with a high proportion of local involvement through construction and supply contracts and local employment. The unique community and shared value policy continues to be a key success factor, training local people under the supervision of high quality experienced professionals.
The Olaroz lithium project is being developed by Orocobre (66.5%) with partners Toyota Tsusho Corporation ("TTC") (25%) and the Jujuy Province mining and energy company, JEMSE (8.5%) with a construction budget of US$229m including contingency. First commercial production is projected to be for the end of August 2014.
To view competent person, cautionary and JORC statements, including figures and diagrams, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-ORE-792131.pdf
About Orocobre Limited
Orocobre Limited is listed on the Australian Securities Exchange and Toronto Stock Exchange (
ASX:ORE) (TSE:ORL) (OTCMKTS:OROCF), and is building a substantial Argentine based industrial chemicals company through its portfolio of lithium, potash and boron assets. In partnership with Toyota Tsusho Corporation (TTC) and JEMSE, Orocobre has built and is now operating the world's first commercial, brine-based lithium operation constructed in approximately 20 years.
In 2018 Orocobre announced the Stage 2 Expansion of its flagship Olaroz Lithium Facility in Argentina. The Stage 2 Expansion will add 25,000 tpa of lithium carbonate production capacity, taking full production and capacity to 42,500 tpa of lithium carbonate for sale to industrial, technical and battery markets, positioning Orocobre as one of the world's largest and lowest cost lithium chemicals producers.
Additionally, Orocobre and Toyota Tsusho Corporation have commenced construction of the 10,000 tpa lithium hydroxide plant in Naraha, Japan. The construction of the Naraha Lithium Hydroxide Plant will further cement Orocobre's position as a global lithium chemicals producer operating at the bottom quartile of the lithium cost curve. This new hydroxide plant will be the first of its kind in Japan and will provide Orocobre product diversification suitable for different battery technologies and the potential for significant margin growth on our primary lithium carbonate being converted to battery grade lithium hydroxide.
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