PERTH (miningweekly.com) − Australian lithium miner Galaxy Resources has started a definitive feasibility study (DFS) at James Bay, paving the way to increase its stake in the Canadian spodumene project to 70%.

ASX-listed Galaxy entered into a farm-in agreement with Lithium One last year, and already owns 20% of the project.

MD Iggy Tan said that Galaxy would fast-track the development of James Bay, in Quebec, by using similar capacity and design as the plants constructed at its Australian Mount Cattlin and Chinese Jiangsu operations.

James Bay would incorporate a mine, processing plant and battery-grade lithium carbonate plant.

The processing plant design would be incorporated into the DFS. Galaxy said that the design of the James Bay plant’s crushing and heavy media separation concentrator would be modelled on the Mount Cattlin plant, in Western Australia, and was expected to process around one-million tons of ore a year.

The DFS would also determine the most suitable location for the battery-grade lithium carbonate plant and would look at Quebec and Jiangsu as options.

The lithium carbonate plant design would mirror the design of the Jiangsu plant, with production of around 17 000 t/y of battery-grade lithium carbonate. Similarly, the design would also incorporate a purification circuit, allowing production of grades above 99.5% lithium carbonate.

“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,” said Tan.

By 2012, Galaxy's Mount Cattlin mine will be the world's second-largest hard rock producer of lithium and through the development of the 17 000 t/y carbonate plant,  the company expects to be the largest lithium producer in China.

Demand for lithium, used to make batteries and ceramics, has been climbing over the past few months, mainly driven by sales of electric vehicles.

TSX-V-listed Lithium One chairperson Martin Rowley said in a separate statement that both its lithium projects were now in feasibility stage.

“This brings us closer to our goal of being a low-cost producer of lithium and potash at Sal de Vida [in Argentina], together with the added value to our shareholders through the interest we maintain in the James Bay project that is being managed by experienced spodumene producer, Galaxy Resources,” said Rowley.