Name of the Project
Prairie lithium project.

Location
Williston basin of Saskatchewan, Canada.

Project Owner/s
Prairie Lithium, formerly Arizona Lithium.

Project Description
Prairie holds a resource of 6.3-million tonnes comprising 4.5-million tonnes of lithium carbonate equivalent (LCE) in the indicated category and 1.8-million tonnes in the inferred category.

A prefeasibility study (PFS) has reported initial production of 6 000 t/y, consisting of three inaugural well pads, each producing 2 000 t/y of LCE over a 20-year mine life.

The robust PFS economics for Phase 1 can be replicated, and additional modules will increase production to between 20 000 t/y and 25 000 t/y in Phase 2, and multiples thereof in Phase 3.

The Prairie project uses conventional oil and gas drilling and completion methods to access lithium-rich brine from aquifers about 2.3 km underground. 

Through direct lithium extraction (DLE) technology, the company will separate lithium from the brine. The extracted lithium concentrate will be converted on site to an upgraded high-purity material. The remaining lithium-depleted brine will be disposed of back underground into a different aquifer. The DLE process uses less land and fresh water while generating less waste, in comparison to hard-rock and evaporation mining.

Prairie’s current website states that the first phase of production is fully permitted and that construction is under way, with production pads being built to support scalable lithium extraction.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
In the base case, the project has a pretax net present value, at an 8% discount rate, of $448-million and an internal rate of return of 23.9%, with a payback of 2.2 years.

Capital Expenditure
Phase 1 – $290-million, including contingency. The total installed cost for each additional well pad is estimated at $70-million.

Planned Start/End Date
First production from Phase 1 is targeted for the fourth quarter of 2026.

Latest Developments
Prairie Lithium has signed a binding definitive agreement with Hydro Lithium, under which Hydro Lithium will acquire 100% of Phase 1 production from the Prairie lithium project. Phase 1 represents 150 t/y of LCE and is Prairie’s initial commercial-scale proof-of-concept operation.

Under the agreement, Hydro Lithium will also provide and operate about A$10-million of proprietary refining equipment as part of the Phase 1 processing flowsheet. 

Prairie has said that the agreement secures a binding offtake partner for Phase 1 production and provides an established downstream route through Hydro Lithium’s 3 600 t/y LCE battery-grade refinery in South Korea. The agreement has an initial ten-year term and may be renewed by mutual agreement for additional ten-year terms, up to a total of 30 years.

Prairie has also reported that construction at the Phase 1 facility is well under way. 

Production and disposal wells have been drilled, power infrastructure has been installed and the building to house the DLE equipment is nearing completion. 

Key Contracts, Suppliers and Consultants
Samuel Engineering (lead consultant for the PFS).

Contact Details for Project Information
Prairie Lithium, tel +61 8 6313 3936 or email info@prairielithium.com.