Canada’s Sigma Lithium Corporation (TSX-V: SGML) (NASDAQ: SGML) has increased the mineral resource at its flagship operation in Brazil by 27 per cent following completion of the latest estimate.
The company said Wednesday that the Grota do Cirilo project is now the world’s fourth-largest industrial pre-chemical lithium beneficiation complex as a result. Sigma is known for its environmentally conscious production methods that produce “Quintuple Zero Green Lithium.”
The hard rock mine is now estimated to contain 109 million tonnes of measured, indicated and inferred mineral resources. Sigma says that number is expected to increase further to 150 million going forward.
“In a little over seven years, Grota do Cirilo went from drill core samples to one of the largest lithium mineral resources in the world,” Iran Zan, Director of Geology, said. “With some of the highest grades.”
“With today’s mineral resource update, we are just beginning to demonstrate the sizeable potential of our lithium corridor and will be targeting some of the 57 high-priority pegmatites in the 2024 campaign,” Zan added.
The Grota do Cirilo operation is the only one of its kind with no tailings dam. A hydroelectric plant 50 kilometres from the site provides enough power for the entire project.
The fleet of vehicles at the project is powered with biodiesel as well. The whole mining operation requires no hazardous chemicals, Sigma says.
“Our team overcame incredible challenges to deliver something that has never been done before: a dry-stack tailing process with zero net carbon and 100 per cent water reuse in the production circuit,” Matthew DeYoe, VP of Corporate Affairs and Strategic Development, said in December.
Today, @SigmaLithium reported a 27% increase to the Mineral Resource with Measured and Indicated tonnes increasing to 94.3Mt @ 1.40%. The Company is operating 8 drill rigs to continue to explore the various pegmatites with Sigma believing the Mineral Resource could increase…
— Lithium Royalty Corp. (@Lithium_Royalty) January 31, 2024
Read more: Lithium South near completion of production well and economic assessment at flagship operation
Read more: Lithium South and POSCO Holdings ink mutual development agreement
Sigma still looking for a buyer
Sigma said in December that it is still looking for the right party to sell the company to. The lithium producer has entered into structural and contractual negotiations with a series of finalists, one of which may be taking over.
Sigma ended 2023 by sending a 22,000-tonne shipment of its product to the Swiss mining giant Glencore plc (LON: GLEN) (JSE: GLN). It was the fifth shipment the Sigma had sent Glencore.
The company’s share price has taken a sharp decline in recent days alongside the price of lithium. The stock is worth about 44 per cent less now than it was at the beginning of the year.
Despite the battery metal’s low value at the moment, South America’s lithium resources remain an attractive investment prospect for many.
A recent report indicated that annual lithium exports from Argentina in particular would be worth about US$29 billion more in 2040 than they are now. Automotive manufacturers and international mining companies have invested billions in the sector.
Several early-stage operators like Argentina Lithium & Energy Corp. (TSX-V: LIT) (OTCQX: LILIF), Lithium South Development Corporation (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) and Edison Lithium Corp. (TSX-V: EDDY) (OTCQB: EDDYF) have been developing the nation’s lithium brine resources.
A group of investors just agreed to invest about C$16 million in a new Argentina project run by Australia’s Galan Lithium Limited (ASX: GLN).
The so-called Lithium Triangle in Argentina, Chile and Bolivia is the world’s number one lithium brine resource. Chile alone produces 26 per cent of the global supply.
Lithium South Development Corporation is a sponsor of Mugglehead news coverage
rowan@mugglehead.com
