Cadence Minerals plc, with joint venture interests in lithium exploration and development in northwest Mexico, announced that initial site activities have started at the project in Sonora.
Canadian miner Bacanora Lithium is building Sonora with the world’s largest lithium metals producer, Ganfeng Lithium Co. Ltd.
Cadence has interests in concessions of the project through its 30% holding of Mexalit and Megalit joint venture companies.
Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions, which form part of the 20-year mine plan of the Sonora lithium project.
The project has a measured indicated mineral resource estimate of more than 5 Mt (comprising 1.9Mt of measured resources and 3.1Mt of indicated resources) of LCE and an additional inferred mineral resource of 3.7 Mt of LCE.
Cadence said that the initial site works included the rescue and removal of surface vegetation and topsoil in the area ahead of constructing the lithium processing plant.
Excavated material will be stockpiled at a location next to the plant site and stored in such a way so that it can be incorporated into the future rehabilitation of the area.
A team of 15 people, including two ecologists, a biologist, and a forestry engineer will carry out the work.
Preparatory work has also started to upgrade the main access road to allow heavy equipment engaged in bulk site earthworks later in 2020.
Site accommodation and ancillary facilities are due to be commissioned by the end of the second quarter of 2021.
Final engineering packages from Ganfeng and its suppliers in China will be delivered to Bacanora also in Q2 2021.
Larger items of processing equipment are expected to be delivered in 2022.
Bacanora will continue its community engagement strategy on education, training and development of the local workforce.
Cadence chief executive Kiran Morzaria added: “Today’s announcement not only marks a significant step towards Bacanora’s ambition to become a lithium producer in 2023, but also reflects positively on our ambitions for the Mexalit and Megalit joint ventures with Bacanora, which are part of the Sonora 20-year mine plan.”
BACANORA
Bacanora Lithium last week raised US$65 million. Combined with existing cash and the undrawn portions of its debt financing facility, the money will finance the company’s 50% share of the capital cost required for Stage 1 of the project.
The company owns ten mining concession areas covering approximately 100,000 hectares in the northeast of Sonora. Seven of the concessions form the Sonora lithium project.
Sonora Lithium ltd (SLL) is the operational holding company for the Sonora lithium project and owns 100% of the La Ventana concession.
The La Ventana concession accounts for 88% of the mined ore feed in the Sonora feasibility study which covers the initial 19 years of the project mine life.
SLL is owned 77.5% by Bacanora and 22.5% by Ganfeng Lithium Ltd. SLL also owns 70% of the El Sauz and Fleur concessions, which are held by Mexilit S.A. de C.V.