Galaxy Resources Limited (ASX:GXY) Ore Reserve Statement For The Mt Cattlin And Jiangsu Lithium Projects
Perth, Sep 11, 2009 AEST (ABN Newswire) - Emerging lithium producer, Galaxy Resources Limited (ASX:GXY)(PINK:GALXF) is pleased to announce a new reserve statement for the Mt Cattlin Spodumene Project near Ravensthorpe, Western Australia. The new reserve estimation is based on the May 2009 resource data, as well as the updated cost and revenue figures for the Mt Cattlin and the Jiangsu Lithium Carbonate Projects.
Previous Resource Statement
An updated resource estimate including all the Mt Cattlin resource data was prepared earlier this year, with details announced in an ASX release on 27 May 09. This resource estimate gives a contained JORC-compliant mineral resource for the Mt Cattlin deposit of 155,000 tonnes of lithium oxide (Li2O) and 4.83 million pounds of tantalum pentoxide (Ta2O5) above a cut off grade of 0.4% lithium oxide. Details are given below in Table 1.
Table 1 - May 2009 Mt Cattlin Global Resource Estimate
Reserve Tonnes Li2O% Ta2O5 ppm--------------------------------------Measured 2,260,000 1.19 143Indicated 7,064,000 1.10 156Inferred 5,044,000 1.01 152TOTAL 14,368,000 1.08 153--------------------------------------
Note: Li2O cutoff grade >= 0.4% Li2O. Figures in the above table may not sum due to rounding
New Ore Reserve Estimation
The new JORC-compliant ore reserve estimation is provided in Table 2 below. In addition to the reserves stated below, the design pit shells contain 3.47 million tonnes at 1.02% Li2O and 141ppm Ta2O5 of inferred resources. Galaxy believes there is a good chance that most of these inferred resources will be converted to reserves with additional drilling.
Table 2 - Mt Cattlin - August 2009 Ore Reserve Estimate
Reserve Tonnes Li2O% Ta2O5 ppm-------------------------------------Proved 2,333,400 1.09 130Probable 6,949,600 1.02 140TOTAL 9,283,000 1.04 138-------------------------------------
Note: Li2O lower cutoff grade >= 0.4% Li2O. Figures in the above table may not sum due to rounding
Galaxy Managing Director, Mr Iggy Tan said the new reserve estimation shows a high conversion rate from "resource" to "reserve" tonnage based on the excellent economics relating to value adding of lithium carbonate production.
"These figures, when combined with our recent tenement acquisitions and the considerable progress we've made in bringing the Mt Cattlin project to fruition, demonstrate the robust nature of the project."
Reserve Estimation Parameters
Reserves were estimated within an optimal Whittle pit shell developed by consultants Orelogy and a final pit design prepared by Mining Resources Pty Ltd. 95% mining recovery and 10% dilution have been assumed.
Reserve estimation has incorporated data from resource definition drilling, geological modelling/resource estimation, detailed surface topography surveys, metallurgical test work, process/plant design, capital/processing cost estimation and mine planning. The pit design incorporates geotechnical pit design parameters developed by consultants Dempers and Seymour.
Galaxy is currently completing a drill program to upgrade inferred resources to indicated or measured category. This includes areas where historical drilling was not assayed for lithium, in addition to infilling zones where drill spacing is insufficient. This program, which also includes drilling for resource extensions, is expected to be completed early in the fourth quarter of 2009.
Reserve Estimation Operating Parameters
For reserve estimation, a mining and processing rate of 1 million tonnes per annum of ore has been assumed. Conventional open pit mining, crushing, heavy media separation and classification circuits comprising the following key process steps have been proposed:
- Open pit mining
- Crushing and screening of ROM ore to -6mm
- Three stage heavy media separation (HMS)
- Gravity concentration (spirals and wet tables) of tantalite minerals
- Contract dressing and packaging of tantalite concentrates
- Production of spodumene concentrate at 6.0 % Li2O
- Shipment of bulk concentrate through Esperance port
- Downstream processing at Galaxy's proposed lithium carbonate chemical facility in Jiangsu Province, producing 17,000 tpa of lithium carbonate.
About Galaxy Resources Limited
Galaxy Resources Limited (ASX:GXY) (OTCMKTS:GALXF) is an international S&P / ASX 200 Index company with lithium production facilities, hard rock mines and brine assets in Australia, Canada and Argentina. It wholly owns and operates the Mt Cattlin mine in Ravensthorpe Western Australia, which is currently producing spodumene and tantalum concentrate, and the James Bay lithium pegmatite project in Quebec, Canada.
Galaxy is advancing plans to develop the Sal de Vida lithium and potash brine project in Argentina situated in the lithium triangle (where Chile, Argentina and Bolivia meet), which is currently the source of 60% of global lithium production. Sal de Vida has excellent potential as a low cost brine-based lithium carbonate production facility.
Lithium compounds are used in the manufacture of ceramics, glass, and consumer electronics and are an essential cathode material for long life lithium-ion batteries used in hybrid and electric vehicles, as well as mass energy storage systems. Galaxy is bullish about the global lithium demand outlook and is aiming to become a major producer of lithium products.
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