TORONTO, May 16, 2018 /CNW/ - Lithium developer and
emerging lithium concentrate producer Desert Lion Energy Inc.
(TSXV: DLI) ("Desert Lion" or the "Company") is pleased to announce
the completion of the capital cost estimate for the Phase 1
floatation plant by Tulela Processing Solutions. The total
estimated cost for the Company's Phase 1 floatation plant, capable
of processing between 350,000 tonnes (t) – 400,000t of feed per
year, is estimated to be approximately C$7.0MM (N$70.0MM).
"The Phase 1 floatation plant is a critical component of our
execution strategy, allowing us to continue to generate cash and
systematically de-risk project. The low capital cost intensity of
the Phase 1 floatation plant further demonstrates the
jurisdictional and asset specific benefits of the Desert Lion
Energy Lithium project," commented Tim
Johnston, President and Chief Executive Officer of Desert
Lion Energy.
The Phase 1 floatation plant will be used to process the fines
from the historic run of mines stockpiles at the Rubicon and
Helikon mines as part of a three-phase execution plan: (i) Phase 1,
the processing of the historic run of mine stockpiles at the
Rubicon and Helikon mines;
(ii) Phase 2, large scale mining and concentrate production from in
situ material to produce a total of 250,000t – 300,000t per year of
concentrate; and (iii) Phase 3, 25,000t per year of lithium
carbonate production in Walvis Bay, Namibia.
Qualified Persons Consent
Tim Johnston, CPEng, President and
Chief Executive Officer of the Company, and a Qualified Person as
defined by National Instrument 43-101 has reviewed and approved the
scientific and technical information contained in this news release
and was responsible for verifying the data herein.
About Desert Lion Energy
Desert Lion Energy is an emerging lithium development company
focused on building Namibia's
first large-scale lithium mine to be located approximately 210km
from the nation's capital of Windhoek. The Company's Rubicon and Helikon
mines are located within a 301km2 prospective land
package, with known lithium bearing pegmatitic mineralization and
the Company is currently in Phase 1 of its production plan,
producing and exporting lithium concentrate from stockpiled
material. The project site is accessible year-round by road and has
access to power, water, rail, port, airport and communication
infrastructure.
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking information"
within the meaning of applicable securities laws. Generally, any
statements that are not historical facts may contain
forward-looking information, and forward-looking information can be
identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget"
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or indicates that certain actions, events or results
"may", "could", "would", "might" or "will be" taken, "occur" or "be
achieved." Forward-looking information includes, but is not limited
to: statements and expectations regarding the targeted additional
tonnage of lithium concentrate production from Phase 1 operations;
the timing for the construction and commissioning of the Company's
Phase 1 floatation plant; the exercise of the conversion option by
Jinuui pursuant to the Offtake Agreement; the anticipated timeline
for publication of the mineral resource estimate and preliminary
economic assessment; the anticipated timeline for the approval of
the Company's application for its Phase 2 mining license; and the
Company's planned work program for the Project and its exploration
and development schedule and timetable.
Forward-looking information is based on certain factors and
assumptions management believes to be reasonable at the time
such statements are made, including but not limited to, continued
exploration activities, lithium and other metal prices, the
estimation of initial and sustaining capital requirements, the
estimation of labour and production costs, the estimation of
mineral reserves and resources, assumptions with respect to
currency fluctuations, the timing and amount of future exploration
and development expenditures, receipt of required regulatory
approvals, the availability of necessary financing for the Project,
permitting and such other assumptions and factors as set out
herein.
Forward-looking information is subject to known and unknown
risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of the
Company to be materially different from those expressed or implied
by such forward-looking information, including but not limited to:
risks related to changes in lithium prices; sources and cost of
power and water for the Project; the estimation of initial capital
requirements; the lack of historical operations; the estimation of
labour and operating costs; general global markets and economic
conditions; risks associated with exploration, development and
operations of mineral deposits; the estimation of initial targeted
mineral resource tonnage and grade for the Project; risks
associated with uninsurable risks arising during the course of
exploration, development and production; risks associated with the
estimation of targeted production tonnages from Phase 1 operations;
risks associated with currency fluctuations; environmental risks;
competition faced in securing experienced personnel; access to
adequate infrastructure to support exploration activities; risks
associated with changes in the mining regulatory regime governing
the Company and the Project; completion of the environmental
assessment process; risks related to regulatory and permitting
delays; risks related to potential conflicts of interest; the
reliance on key personnel; financing, capitalization and liquidity
risks including the risk that the financing necessary to fund
continued exploration and development activities at the Project may
not be available on satisfactory terms, or at all; the risk of
potential dilution through the issuance of additional common shares
of the Company; the risk of litigation.
Although the Company has attempted to identify important
factors that cause results not to be as anticipated, estimated or
intended, there can be no assurance that such forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance
on forward-looking information. Forward-looking information is made
as of the date of this presentation and the Company does not
undertake to update or revise any forward-looking information this
is included herein, except in accordance with applicable securities
laws.
Cautionary Note Regarding Potential Quantity of Stockpiled
Material
The potential quantity of stockpiled material located on the
property as disclosed herein is an estimate only and is conceptual
in nature; there has been insufficient exploration to define a
mineral resource and it is uncertain if further work will result in
this estimate being delineated as a mineral resource. Estimates
provided are based on initial prospecting work completed by the
Company.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Desert Lion Energy
