PERTH (miningweekly.com) – Junior lithium developer Arizona Lithium has signed a strategic alliance term sheet with Navajo Transitional Energy Company (NTEC) to manage all permitting and contract mining services for the Big Sandy lithium project, in the US.
The term sheet allows initial work by both companies on the development of the Big Sandy project, while allowing time for further due diligence and the development of a final definitive agreement.
Big Sandy is currently estimated to host an indicated and inferred Joint Ore Reserves Committee-compliant resource of 32.5-million tonnes grading 1 850 parts per million lithium for 320 800 t of lithium carbonate. This represents 4% of the Big Sandy project area that contains an estimated exploration target of between 271.1-million tonnes to 483.15-million tonnes.
Arizona Lithium recently started a definitive feasibility study into the project, after a scoping study confirmed Big Sandy as being well positioned to become a long-term lithium producer to supply the rapidly growing demand for electric vehicles in North America.
“We are extremely pleased to have entered a strategic alliance term sheet with NTEC, as this represents a monumental breakthrough in the sustainable development of Big Sandy,” said Arizona MD Paul Lloyd.
“Through our initial agreement, and subject to agreeing definitive agreements, NTEC will take over the operational development of Big Sandy and will manage all aspects from the permitting requirements for additional exploratory drilling process through to mine design, environmental assessments, construction, and contract mining operations for the project. We look forward to working with such an impressive and professional energy company as we continue to advance Big Sandy to lithium production.”