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Friday, Feb 14, 2025
Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.

Alternative Energy

Green Technology Metals set to turn a paper mill into a lithium conversion facility in Thunder Bay

The company thoroughly assessed 56 brownfield sites in northwestern Ontario before choosing the site

Green Technology Metals inks LOI for Thunder Bay lithium hydroxide conversion facility
Geologists examining drill core the company's Seymour Project. Image from Green Technology Metals.

Green Technology Metals Ltd (ASX:GT1) signed a letter of intent to convert a former paper mill in Thunder Bay into a lithium hydroxide conversion facility.

This is part of the company’s three part strategy towards an integrated strategy for vertical supply chain development in Canada, the company said on Wednesday.

A lithium hydroxide conversion facility serves as a refinery, taking lithium concentrate initially processed at the mine site and transforming it into the high-quality material sought after by electric vehicle manufacturers.

Green Technology has identified the Thunder Bay mill site as a potential location, among a few other sites of interest within the city. However, the final decision is contingent upon a comprehensive evaluation of the property’s environmental impact, permitting requirements and community acceptance.

Prior to selecting this particular site, the company thoroughly assessed 56 brownfield sites in northwestern Ontario, with a specific focus on areas zoned for heavy industrial use.

“Our team has undertaken an extensive amount of work over the past 12 months to evaluate to advance GT1’s integrated supply chain strategy ready for the eagerly anticipated Integrated Preliminary Economic Assessment (PEA) set for release this quarter,” said Luke Cox, CEO of Green Technology Metals.

“The PEA will offer insights into project specifics and timelines, emphasising cost-effectiveness, infrastructure advantages, and growth opportunities, that we are confident will enhance shareholder and stakeholder value.”

Read more: American Battery Technology gets government contract for low cost battery materials

Read more: Lithium South Development Increases Lithium Resource by 175% and begins well-drilling program at Argentina’s Hombre Muerto North

Company is moving the project towards a feasibility study

The company is progressing with its plan to achieve operational status by 2025, focusing on spodumene concentrate production at the Eastern Hub Seymour mine.

The Seymour mine project is on schedule with site preparation set to start in early 2024 and construction to follow later that year, pending necessary approvals. The company is also advancing the project to the Feasibility Study (FS) level, with a final investment decision expected in the September quarter.

Additionally, the Western Hub, which is northeast of Sioux Lookout, is scheduled to begin operation in 2029, and will serve as an additional source of feedstock for the lithium hydroxide facility. The company has initiated preparatory work for permitting the Western Hub mine and concentrator, which include technical studies, indigenous consultation, engineering tasks, project definition, resource refinement and consultation with government agencies.

Consulting partners Primero, Nordmin Engineering and Englobe have also been helping create the conceptual site layouts to allow for a geotechnical testing program in support of the PEA and FS for the Western Hub Concentrator.

Read more: Northvolt set to build lithium-ion battery factory in Quebec for $7B

Read more: Lithium-ion battery market set to reach $18.8B by 2032: Allied Market Research

Green Technology engages in field exploration for new drill targets

Over the past five months, the company has undertaken an extensive regional field exploration program to identify new drill targets within their highly prospective projects, some of which have seen limited historical exploration.

The company’s exploration team is now in the final stages of this program and will soon assess and prioritize these projects for future drilling or additional exploration efforts. This strategic approach aligns with the ongoing development activities at the company’s two primary projects, Root and Seymour, ensuring a systematic and well-planned expansion of their resource base.

The immediate priority for GT1 is to secure additional feed for the Eastern Hub. To achieve this, the company recently acquired Junior Lake, a decision driven by its strategic proximity to Seymour within the Eastern Hub.

Junior Lake hosts several LCT pegmatites within three well-established target areas—Despard, Swole Lake and Tape Lake. All these areas present drill-ready targets and exhibit geological similarities to other advanced GT1 projects based on the lithium exploration conducted to date.

Shares of Green Technology rose by 3.3 per cent to $0.47 AUD on Wednesday on the Australian Securities Exchange.

Lithium stocks show increased demand

In August, major automotive company, Stellantis (NYSE: STLA), invested over USD$100 million in a carbon-neutral lithium project in California. The project is owned, operated, and currently under development by a renewable energy company called Controlled Thermal Resources (CTR).

This investment builds upon a supply agreement between Stellantis and CTR signed the previous year. Under the expanded agreement, CTR will supply Stellantis with 65,000 metric tons of battery-grade lithium hydroxide monohydrate (LHM) annually over a 10-year period starting in 2027, marking a significant increase from the previous commitment of 25,000 tons agreed upon in June.

Lithium South Development Corporation (TSXV: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) is gearing up for a feasibility study on its flagship lithium operation in Argentina’s Salta province.

The Vancouver-based lithium junior explorer indicated that its Phase I program at its Hombre Meurto North project would involve three wells, which would then be fit with screen filters and blind casing.

The initial well is currently being drilled to a depth of 200 meters below the surface within the Natalia Maria claim block, which is one of the five blocks included in the new drilling campaign. In April, the company released findings of high-grade core samples from this specific block, with an average lithium grade of 1,176 milligrams per liter.

 

Lithium South Corporation is a sponsor of Mugglehead news coverage 

 

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