Grid Metals Corp. (TSXV: GRDM | OTCQB: MSMGF) has received results from a scoping-level mill reconfiguration study completed by Primero Group for the True North Mill located in Manitoba, Canada. The study examined the viability and cost of reconfiguring the True North gold mill to process lithium ore from Grid’s Donner Lake property to produce a saleable lithium concentrate.
As a result of the positive findings, Grid is proceeding with the lease agreement with 1911 Gold Corporation – the owner of the True North Mill. Grid’s objective of entering the lease is to be one of the next producing lithium companies in North America.
“The work completed by Primero has outlined a low capital intensity project and has quantified operating and capital costs. This study gives us confidence to move forward with the lease agreement for the True North Mill,” Robin Dunbar, CEO of Grid Metals, commented.
“The True North Lease Agreement gives Grid access to a permitted mill and tailings facility within trucking distance of our Donner Lake lithium resource. We believe that with the True North Mill lease, the Donner Lake lithium project can be one of the next producing lithium projects in North America.”
Mill capacity was estimated at 450,000tpa of lithium feed to produce spodumene concentrate, assuming a 90% mill availability. This compares favourably to the stated nominal annual capacity of the current mill configuration of 475,000t. Note that the current mineral resource estimate at the Donner Lake property is 6.8Mt grading 1.39% Li2O.
An optimal grind size of 125 microns was determined and existing mill grinding capacity was not considered a constraint on throughput. Initial capex for the mill reconfiguration is estimated at C$50M which includes a 30% contingency. This includes capex relating to crushing, grinding, mica flotation, magnetic separation, spodumene flotation, concentrate handling, and tailings handling.
The processing cost was estimated at C$34.81/t processed, and G&A was estimated at C$17.73/t processed. This equates to total milling costs of C$316.14/t spodumene concentrate produced. Labour and reagents made up 42% and 32%, respectively, of the processing cost. Primero has identified opportunities to reduce costs and recommended a value engineering phase for a cost of C$400,0000. Primero also gave an estimate for an engineering, procurement, and construction management study at a feasibility-level design at approximately C$1.6M.
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