Lithium South Development Corporation (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) is preparing its updated preliminary economic assessment (PEA) on its flagship project in Argentina.
Its revised PEA report will use its latest resource of 1.58 million tonnes of lithium carbonate equivalent (LCE) and will be based on current market conditions and pricing which will expand production goals. The report will use an initial design capacity (IDC) of 15,000 tonnes per year of LCE production.
The company announced Wednesday that it is hiring Knight Piésold Consulting (KP) and JDS Energy & Mining (JDS) to prepare an updated National Instrument 43-101 Preliminary Economic Assessment (PEA) on the Hombre Muerto North Lithium Project (HMN Li Project) located in the Argentinean province of Salta.
KP will provide the engineering design, cost estimation, infrastructure and logistics for the PEA. KP is a global consulting firm that provides specialized services to the mining, power, water resources, and infrastructure industries.
The company was established in South Africa in the 1920s and has expanded its reach into a global network of over 1,200 professionals based in offices in North and South America, Europe, Africa, Australia and Asia.
JDS is providing the study management and economic analysis for the project. The engineering, project and construction management firm has a proven record of providing clients with fit-for-purpose solutions and value delivery.
It has acquired a reputation for delivering and executing project plans on budget, on time and most importantly, focusing on safety. The JDS team delivers project concepts from inception to full operations, providing clients with technical engineering support, onsite operations services and EPCM.
Lithium South adds raw materials expert to direct report
Lithium South has added Peter Ehren –who is an expert in raw materials technology– as the primary engineer for its process optimization and as the qualified person for the PEA and NI 43-101 technical report.
Ehren has extensive experience with lithium projects across the world, especially in Argentina and Chile. As a process engineer, he was responsible for the design of flagship projects such as Salar de Olaroz of Sales de Jujuy run by New Co.
Ehren was also involved in the Pastos Grandes which is now owned by Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) and Salar de Maricunga operated by Lithchalium Power International (ASX: LPI).
With the direction of Ehren, the company is targeting lithium recovery improvements from the current 50 per cent to approximately 70 per cent.
Last September, Lithium South started drilling a series of new wells at its flagship lithium operation in Argentina’s Salta province following a 175 per cent expansion of its lithium brine resources at the site.
The company is completing the construction of a pilot plant at the site to test lithium evaporation characteristics and has only drilled 75 per cent of the project area on the Salar del Hombre Muerto salt flat.
Lithium South has a market capitalization of $43.2 million, 97 million issued and outstanding shares, no outstanding debt and $4.6 million in cash (as of June 30).
Company stock dropped slightly on Wednesday by 1.35 per cent to $0.36 on the Canadian Venture Exchange.
Lithium South Development Corporation is a sponsor of Mugglehead News Coverage