Cauchari Definitive Feasibility Study Commences
BRISBANE - Orocobre Limited announced that Advantage Lithium Corp. has engaged engineering consultants GHD, Chile S.A. to commence early engineering geared towards the completion of a Definitive Feasibility Study (DFS) on its flagship Cauchari Project in Jujuy, Argentina. The DFS is expected to be completed by 1H CY19. The appointment of GHD follows encouraging Preliminary Economic Assessment (PEA) outcomes and continued positive results from the Phase III resource conversion program. The DFS will provide an appropriate engineering design to produce a Class 3 cost estimate consistent with American Association of Cost Engineers (AACE) principles to build a standalone lithium plant producing 20 thousand tonnes per annum (Ktpa) of Lithium Carbonate Equivalent. A report on this work will be prepared in accordance with NI43-101 standards of disclosure and is scheduled for completion in Q4 FY19.
Orocobre Managing Director & CEO Richard Seville said, "I am very pleased that the Advantage team are commencing the Cauchari Definitive Feasibility Study having achieved excellent results from recent work. The Cauchari Project is quickly becoming one of the most advanced lithium brine development projects in South America, with similar chemistry to our nearby Olaroz Lithium Facility."
The commencement of early engineering marks another key milestone for the Cauchari Project's development following positive PEA results. The Phase III drilling program is nearing completion, culminating in 30-day pumping tests on main production targets in the NW Sector and the SE Sector deep sand units. These results will feed into an updated resource estimate which is targeted in Q3 FY19 and expected to bring Cauchari's resources into the Measured and Indicated categories.
Advantage Lithium have applied a rigorous process to identify and select suitable partners to assist in the development of its Cauchari project. In that process, GHD were selected from other pre-qualified global engineering firms as the best fit for Cauchari development plans, to complete the early engineering and establish a project execution plan to achieve first production in Q3 CY21 and full post ramp-up production in 2023.