TORONTO (miningweekly.com) – Toronto-based Canada Lithium has awarded an engineering, procurement and construction management contract for its project in Quebec to local firm Genivar Inc.

Detailed engineering and design work is now under way, and Genivar will be supported by Met-Chem Canada for part of the process design and engineering stages, the firm said.

Canada Lithium expects site works to be under way by mid-2011 for the planned openpit mine and processing plant, with commissioning to start in late 2012 and full production scheduled in 2013.

Based on a December 2010 feasibility study, the project will cost an initial $202-million. Cash operating costs are forecast at around $2 600/t of battery-grade lithium carbonate.

Canada Lithium said on January 12 it would raise C$110-million in a bought-deal financing to partly finance the construction of the mine and plant.

Shares in the company declined 3,4% on Monday, to C$1,41 apiece by 14:48 in Toronto.

The Canada Lithium operation, located near Val d’Or in Quebec, will produce more than 20 000 t/y of battery-grade lithium carbonate and has an initial mine life of 14,8 years, according to the December study.

The project has measured and indicated resources of about 46,7-million tons at 1,19% Li2O, and additional inferred resources of some 57,6-million tons, at 1,18% Li2O.
 

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