PERTH (miningweekly.com) – Lithium developer Pilbara Minerals is considering increasing the output at its Pilgangoora lithium/tantalum project, in Western Australia, after a 15% increase in the total proved and probable ore reserve.
The ore reserve is estimated at 80.3-million tonnes, grading 1.27% lithium oxide, 123 parts per million tantalum pentoxide, and 10.8% iron oxide.
The expanded ore reserve follows the completion of drilling since the definitive feasibility study in September 2016, and is based on the upgraded mineral resource of 156.3-million tonnes, grading 1.25% lithium oxide for an estimated 1.95-million tonnes of lithium oxide.
The company said on Thursday that studies are under way to evaluate increasing production capacity to five-million tonnes a year, rather than four-million tonnes a year, once operations at Pilgangoora have started at the initial targeted production rate of two-million tonne a year.
“This impressive result well and truly sets the scene for our Stage 2 expansion, and allows us to consider an increased production rate of five-million tonnes a year,” said Pilbara MD Ken Brinsden.
“Given the rapid escalation in customer demand, the robust outlook for the lithium market and continued increases in the resource and ore reserve, we have every reason to believe that Pilgangoora’s production can continue to grow, subject of course to completing the appropriate studies.”
The Pilbara board recently green-lit the A$214-million investment required to bring the Pilgangoora project to life, with first spodumene and tantalite concentrate shipments scheduled for the second quarter of 2018.
The project is currently expected to produce an average of 314 000 t/y of 6% spodumene concentrate and 321 000 lb/y of tantalite, over a mine life of 36 years. All project approvals are already in place.