TORONTO (miningweekly.com) – Toronto-based Canada Lithium plans to complete a definitive feasibility for its Quebec lithium project, in Canada's Quebec province, by the first quarter of 2011, the firm said this week.

The company published the results of a prefeasibility study for the project, which envisages an operation producing 42,6-million pounds a year of battery-grade lithium carbonate, with initial capital costs estimated at $148-million, including contingencies.

“This study is a good indication that the Quebec Lithium property can compete financially with most of the lithium brine prospects under development, but on a much faster timeline,” CEO Peter Secker said in a statement.

“Canada Lithium is positioning itself to become a significant, secure North American supplier of high-quality lithium carbonate within the next two years.”

The project has excellent existing road, rail and power infrastructure and is located within a 14-hour drive of Detroit, the emerging North American centre for electric vehicle and battery manufacturers, the company said.

Canada Lithium is looking at a two-stage development plan, which it will detail in its feasibility study.

After receiving positive results from the prefeasibility study, pilot-plant metallurgical studies are under way and the company plans to start engineering soon to advance the project to a feasibility study level.

The feasibility study will be funded from internal cash resources, which stand at $15-million.

Canada Lithium has a marketing agreement with Mitsui and Co of Tokyo, Japan, and is also in discussions with North American lithium buyers, the firm said.

Based on the current timetable, commissioning of the Quebec project could begin as soon as the third quarter of 2012.

Shares in Canada Lithium rose 7,37% on Tuesday, to C$0,51 a share by 15:57 in Toronto.

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