Alexander Mining PLC Lithium Joint Venture Update (7419I)

TIDMAXM

RNS Number : 7419I

Alexander Mining PLC

21 June 2017

21 June 2017

Alexander Mining plc

("Alexander" or the "Company")

Update on Lithium Research and Development Joint Venture

   --     Considerable interest from lithium prospect developers 
   --     Expansion of project into other lithium bearing minerals 
   --     Research and development laboratory work to start shortly 

Further to the announcement about the Company's joint venture ("JV") project for the recovery of lithium from hard rock sources on 2 March 2017, Alexander is pleased to announce that there has been significant interest, including the provision of samples, from several companies in the mining industry. Pursuant to this interest, the JV Agreement between Alexander and Dr. Nicholas Welham has been varied to include the testing of the potential process on a wider range of lithium bearing minerals, ores and concentrates.

The original JV Agreement was restricted to spodumene containing ores, concentrates and tailings. The commercial terms of the JV remain unchanged.

Now that suitable samples have been received, Dr Welham plans to start research and development laboratory work shortly. The lithium research and development programme is complementary to the Company's existing leaching technology for the recovery of cobalt, which has an important use in lithium ion batteries and other high technology sectors.

Enquiries

 
 Martin Rosser 
  Chief Executive 
  Mobile: [phone] 
  341 
 Matt Sutcliffe 
  Executive Chairman 
  Mobile: [phone] 
  758 
  Alexander Mining plc 
   Tel: [phone] 
   Email: [e-mail] 
   Website: www.alexandermining.com 
 
 Northland Capital Partners 
  Limited 
  Matthew Johnson / Gerry 
  Beaney 
  [phone] 
  (Corporate Finance) 
  John Howes 
  (Corporate Broking) 
  Turner Pope Investments 
  (TPI) Ltd 
  James Pope / Ben Turner 
  [phone] 
 

R&D Joint Venture Background

The JV has been formed to investigate the potential recovery of lithium from lithium bearing minerals. The JV parties believe that the only realistic sources of lithium to supply the rapidly expanding demand is from hard rock resources. Brine deposits are primarily in South America (Bolivia, Argentina and Chile) and China and historically these countries have a moderate sovereign risk. Brine deposits are concentrated by solar evaporation from large ponds and can only realistically occur in extremely arid areas. It is hard to fast track production from brine as the process to obtain lithium typically takes 18-24 months from commissioning to first product. Hard rock resources are a more viable proposition for rapid development as the time from commissioning to first concentrate can be a matter of a few weeks.

The spodumene (LiAlSi(2) O(6) ) concentrate is typically sold onto Chinese producers of lithium carbonate who use a combined pyrometallurgical-hydrometallurgical flowsheet to produce a lithium carbonate (or hydroxide) product. The high cost of the pyro--hydro process remains the significant obstacle to the low-cost production of lithium carbonate (or hydroxide) from spodumene.

Other lithium minerals, particularly the micas lepidolite and zinnwaldite, are often found in conjunction with spodumene but must be removed prior to shipment as they are a major problem in the classical process. Deposits where the lithium is divided amongst several minerals may have a promising head grade but are unable to economically produce a spodumene concentrate. Such deposits may become economic under the envisaged process. Remote deposits are also potential users as the cost of transport may outweigh the value of the concentrate produced and a low cost on-site process to produce a high value product may well change the economics.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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June 21, 2017 05:59 ET (09:59 GMT)