Galaxy Resources Limited (ASX:GXY) Commences James Bay Spodumene Project Feasibility Study
Perth, Sep 14, 2011 AEST (ABN Newswire) - Galaxy Resources Limited (
ASX:GXY) (PINK:GALXF) is pleased to announce that it has commenced a Definitive Feasibility Study (DFS) on the James Bay Spodumene Project (James Bay) in Quebec, Canada, the completion of which will allow Galaxy to increase its stake in the project to 70%.
In 2010, Galaxy signed a Memorandum of Understanding ("MOU") with Canada's Lithium One Inc. (TSX-V LI) to acquire up to 70% of the James Bay project as part of a farm-in arrangement. Under the agreement, Galaxy acquired an initial 20% equity interest in James Bay for C$3 million and had the potential to earn 70% through the funding and completion of a DFS within a 24 month period.
The James Bay project is an extensive, high-grade spodumene pegmatite deposit that occurs at surface. The project has potential to significantly add to Galaxy's already considerable resource base and lithium supply. The James Bay project will incorporate a mine, processing plant and battery-grade lithium carbonate plant.
The Company has appointed Montreal-based engineering services consultancy Genivar Inc. (Genivar) to manage the DFS.
Genivar is one of Canada's largest engineering services firms and has extensive experience in the James Bay area.
Galaxy Resources Managing Director, Iggy Tan, said Galaxy's lithium project development expertise would enable Galaxy to accelerate the development of the James Bay project.
"Galaxy wants to extend its lithium resource base and James Bay's location, geology and the low cost of entry were the key attractive aspects of the farm-in agreement with Lithium One.
"Galaxy expects to be able to fast track the development of James Bay by using similar capacity and design as the plants constructed at Mt Cattlin and Jiangsu," Mr Tan said.
Galaxy has engaged mining engineering firm DRA Americas Inc. to work on the James Bay processing plant design component of the DFS. Galaxy said the design of the James Bay plant's crushing and heavy media separation concentrator would be modelled on Galaxy's Mt Cattlin plant in Western Australia and expected the plant to process 1,000,000 tonnes of ore per annum.
The James Bay project will also include a battery-grade lithium carbonate plant. The DFS will assess whether the most suitable location is Quebec or in Jiangsu, China next to Galaxy's existing Jiangsu Lithium Carbonate facility.
Galaxy said the lithium carbonate plant design would mirror the design of the Jiangsu plant, with production of 17,000 tonnes per annum of battery grade lithium carbonate. Similarly, the design will incorporate a purification circuit, allowing production of grades above 99.5% lithium carbonate.
This component of the DFS will be undertaken by Hatch Engineering, the Company's existing EPCM contractor for the Jiangsu lithium carbonate plant.
Galaxy said the location of a bulk sample test pit had also been selected. Approximately 50 tonnes of pegmatite will be extracted for crushing and heavy media testwork. The bulk sample is being collected by Nord-Fort Inc. The Company is working together with the local First Nations community to coordinate the sample collection. Any further testwork involving conversion of upgraded spodumene to lithium carbonate will completed at the Company's Jiangsu laboratory.
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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