Orocobre
Limited is an Australian Securities Exchange( “ASX:ORE”)
listed minerals exploration company with a focus on developing
“best of class” Lithium, Potash and Boron resources
in Argentina.
Orocobre’s flagship lithium-potash project is the Salar
de Olaroz (“Olaroz” ) resource in the heart of
the lithium rich zone of South America with JORC compliant
inferred resource under company control of 1,500,000 tonnes
of lithium carbonate and 4,400,000 million tonnes of muriate
of potash. The project is 138 kilometers due east of SQM’s
Salar de Atacama, the largest and highest operating margin
lithium production in the world, and 210 Kilometers north
of FMC’ Hombre Muerto production, the second highest
operating margin commercial production in the world.
Orocobre’s Salar de Olaroz brine has approximately
15% higher concentration of lithium, and only slightly higher
magnesium levels, than those found at FMC’s operations,
and has inferred resources that internal reports (See ASX
announcements) indicate should be capable of producing over
a long mine life , 15,000 tonnes per year of lithium carbonate
and with expansion potential. The company expects to co-produce
approximately 35,000 tons of Potash and is investigating the
potential for boric acid production.
Several factors enhance the potential for Salar de Olaroz
resource to be the next premier lithium brine resource to
be developed. First, the overall brine chemistry at the salar
allows the company to use well understood, and thus lower
risk processing sequences. Secondly, the resource is located
immediately adjacent to a well maintained and sealed road
leading directly to Antofagasta, Chile, which is the primary
lithium export port in the world. Thirdly, a large natural
gas pipeline and compression station exist nearby and within
the same valley as the resource, thus providing low cost access
to power.
The company is currently undertaking extensive work at the
salar, with the goal of completing its bankable feasibility
study by the middle of 2010. This study includes a second
round of detailed drilling, longer term pump tests to further
verify the nature of the reservoirs, ongoing evaporation testing
on-site, brine clean-up techniques during pond evaporation,
and plant and facilities design, optimization, and costing.
These efforts, and others, should allow the company to commence
construction operations later in the second half of 2010,
with initial commercial production targeted for mid- 2011.
The company has begun discussions with several potential
strategic off-take/financing partners, and anticipates securing
strategic agreement(s) in advance of the completion of its
bankable feasibility study.
The Salar de Oloraz development team is led by experts with
extensive experience in all facets of lithium brine development
and operations. The technical development team includes one
of the world’s leading salar hydro-geologist, and two
of the leading lithium brine chemists who posses detailed
understanding of the commercial salar lithium and potash production
and processing.
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