Galaxy Resources Limited (ASX:GXY) Increases Ore Reserves At Mt Cattling Spodumene Project By 11.4 Million Tonnes, Up 23%
Perth, Mar 11, 2010 AEST (ABN Newswire) - Emerging lithium producer, Galaxy Resources Limited (
ASX:GXY) (PINK:GALXF) is pleased to announce a new ore reserve statement for the Mt Cattlin Spodumene Project near Ravensthorpe, Western Australia. The total "Proved" and "Probable" estimate has increased to 11.4 million tonnes @ 1.05% Li2O which represents a 23% increase from the previous reserve estimation in September 2009 (9.3 million tonnes at 1.04% Li2O).
New Ore Reserve Estimation
The new ore reserve estimate reported in compliance with the JORC Code is provided in Table 1 below.
Table 1 - Mt Cattlin - March 20101 Ore Reserve estimate
----------------------------------------Reserve Tonnes Li2O % Ta2O5 ppm----------------------------------------Proved 2,683,000 1.08 135Probable 8,684,000 1.04 151----------------------------------------TOTAL 11,367,000 1.05 147----------------------------------------
Note: Li2O lower cut off grade >= 0.4% Li2O. Figures in the above table may not sum due to rounding.
Ore reserves are based on the January 2010 Mt Cattlin global resource estimate (Table 2). Reserves were estimated within an optimal Whittle pit shell and a final pit design developed by consultant Roselt Croeser.
Table 2 - Mt Cattlin Global Resource Estimate (Jan 2010)
----------------------------------------Reserve Tonnes Li2O % Ta2O5 ppm----------------------------------------Measured 2,672,000 1.17 150Indicated 9,629,000 1.09. 171Inferred 3,575,000 1.00. 145----------------------------------------TOTAL 15,875,000 1.08 161----------------------------------------
Note: Li2O cut off grade >= 0.4% Li2O. Figures in the above table may not sum due to rounding.
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. Figure 1 shows planned pit shells and contained resource blocks.
Reserve Estimation 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, assuming 95% mining recovery and 10% dilution
- Crushing and screening to -6mm
- Reflux Classifier to remove mica flakes
- Two stage heavy media separation (HMS) in two separate size streams
- Gravity concentration (spirals and wet tables) of tantalite minerals
- Contract dressing and packaging of tantalite concentrates (in Perth)
- Production of 137,000 tonnes of spodumene concentrate @ 6.0% Li2O
- Shipment of bulk concentrate through Esperance to Zhangjiagang in China
- Downstream processing at Galaxy's planned 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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