Reedy Lagoon has projects targeting lithium in Nevada, USA.
Initiated in 2016, the identification of increasing demand for lithium and the prospect of emerging new processing technologies for extracting lithium from brines led to the development of three project areas in Nevada, USA. Reedy Lagoon's lithium brine project areas are in closed drainage basins which share similar geology with but are separate from Clayton Valley in which North America's only lithium producing operation is located.
The lithium brine projects are:
Geophysical surveys conducted in April / May 2017 successfully identified brine targets (salty water potentially containing lithium) at each of the projects.
Reedy Lagoon intends drilling in September Quarter 2017 to establish whether these are brines containing lithium in sufficient concentrations for economic extraction. Samples of brine fluids pumped from the drill holes will be analysed to establish their lithium content and if containing lithium in sufficient quantities testing will follow to assess potential process pathways for the commercial extraction of lithium. Should potential for commercial extraction be proven by this work, then it is possible that production could be achievable in 2020 (extensive environmental studies which would underpin any feasibility study generally take at least 2 years and process plant construction could take about a year).
The Company's development plan would ideally include fast tracking one of the projects into production. Sequential and optimised development of production by replication at the other projects could then follow in order to maximise shareholder value.
07 June 2017