Volt Lithium Corp. (TSXV: VLT | OTCQB: VLTLF)
("
Volt" or the "
Company") is
pleased to announce the achievement of another critical milestone
on the path to commercializing its proprietary and proven
next-generation Direct Lithium Extraction (“
DLE”)
technology for processing oilfield brines at the Company’s
permanent Demonstration Plant in Calgary (the
“
Demonstration Plant”). As a result of continued
DLE technology process improvements, led by Volt’s scientific and
engineering teams, the Company has achieved a 64% reduction in
full-cycle DLE operating costs to process brine from its Rainbow
Lake, Alberta project at Volt’s Demonstration Plant. This reduction
builds on the Company’s past success streamlining the DLE process
and driving down costs in order to support robust margins for
Volt's production of lithium carbonate, even within a volatile
price environment for lithium.
“Volt is well on our way to become the low-cost
commercial producer of battery-grade lithium from oilfield brines
in North America,” commented Alex Wylie, Volt’s President &
CEO. “The Volt engineering and technical teams continue to improve
operational processes for our proprietary DLE technology that we
believe will truly drive commercial success for the Company. As
demand for high-quality lithium continues to grow, Volt’s latest
achievement positions us to help meet the world’s expanding need
for this critical mineral, and to do so in an environmentally
sustainable and lower-impact manner.”
DLE Operational
Improvements
Volt continues to accelerate process
improvements related to its proprietary DLE technology at the
Company’s Demonstration Plant. The associated operating cost
reductions are highlighted in the table below, showing continuous
improvement over three key periods in Volt’s ongoing advancement of
its DLE technology, including: 1) May 2023 pilot
operations; 2) December 2023 Demonstration Plant
operations for the Preliminary Economic Assessment
(“PEA"); and 3) Year to Date 2024
process improvements achieved at the Demonstration Plant by the
Company’s scientific and engineering teams. Brine used in each of
the periods was sourced from the 15-1-111-06W6M well (the
“Feedstock Well”) producing from the Keg River
formation at Rainbow Lake, and had an initial lithium concentration
of 34 mg/L.
The operating costs in Table 1 below reflect
Volt’s costs to produce a marketable lithium carbonate of
approximately 90% purity at the Company’s field operations. This
saleable, 90% purity lithium carbonate product can then be further
refined into battery-grade lithium by an existing third party
refiner.
Table 1: Progression of Operating Cost Reductions for
Volt’s DLE Technology
|
34 mg/L |
|
|
May 2023 Pilot |
Dec 2023 PEA |
Feb 2024 Current |
Reduction May 2023 Pilot to
Current |
|
$/tonne LCE |
$/tonne LCE |
$/tonne LCE |
% change |
Operating
Costs1,2 |
|
|
|
|
Pre-Treatment and Filtration |
1,880 |
1,165 |
914 |
(51%) |
DLE3 |
5,121 |
1,905 |
1,051 |
(79%) |
Concentration and Crystallization |
258 |
290 |
312 |
21% |
Other4 |
798 |
1,209 |
608 |
(24%) |
Total |
8,0575 |
4,5696 |
2,885 |
(64%) |
1 Based on a commercial operating unit processing 60,000 bbls/d
of brine. Represents commercial grade lithium.2 All amounts in the
above table are in USD.3 Reduction in cost due to the following: 1)
process improvements which significantly reduced the reagents
required, 2) increasing the concentration of the lithium in the
eluate from 65 parts per million (“ppm”) to 1,190ppm and 3)
membrane replacements costs being capitalized. 4 Other operating
costs include manpower, maintenance materials and external
services.5 As per press release dated May 24, 2023 the Company
reported OPEX of $8,627 CAD per tonne LCE at 50 ppm.6 This is the
estimated equivalent cost using PEA assumptions but based on a
lower Li concentration (34 mg/L).
In addition to driving meaningful cost
reductions, the impact of Volt’s technological advancements has
also resulted in significantly improved lithium extraction results,
which rose from 90% in the May 2023 Pilot to 98% in the recent
February 2024 testing at the Demonstration Plant.
Given Volt’s DLE process is able to successfully
remove 99% of impurities from the brine before processing, and
achieve a 98% lithium extraction rate, the Company can
cost-effectively generate a high-quality eluate of 90% lithium
carbonate. This 90% lithium carbonate is a product that can be sold
to existing third-party refiners for further processing into a
99.5% battery-grade lithium carbonate or lithium hydroxide. A
schematic outlining Volt’s proprietary DLE process and ultimate
production of battery grade lithium carbonate is shown below.
Figure 1: Volt Proprietary DLE
Process
Option Grant
The Company also announces the grant of an
aggregate of 1,200,000 incentive stock options (the
"Options") to certain consultants (the
"Option Recipients") to purchase common shares
(the "Shares") in the capital of the Company
pursuant to Volt’s stock option plan (the "Option
Plan"). The Options, which vest in equal tranches every
six months over an 18-month period, are exercisable at a price of
$0.20 per Share for a period of four years from the date of grant,
and expire on February 14, 2028.
These grants represent compensation to the
Option Recipients for their respective service to the Company and
as an incentive mechanism to foster and align the interest of such
persons in the long-term success of Volt.
Qualified Person’s
Statement
Scientific and technical information contained
in this press release has been reviewed and approved by Doug
Ashton, P.Eng, and Meghan Klein, P.Eng of Sproule Associates
Limited, each of whom are qualified persons within the meaning of
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects (“NI 43-101”). Mr. Ashton and Ms. Klein
consent to the inclusion of the data in the form and context in
which it appears.
About Volt
Volt is a lithium development and technology
company aiming to be North America’s first commercial producer of
lithium hydroxide and lithium carbonates from oilfield brine. Our
strategy is to generate value for shareholders by leveraging
management’s hydrocarbon experience and existing infrastructure to
extract lithium deposits from existing wells, thereby reducing
capital costs, lowering risks and supporting the world’s clean
energy transition. With four differentiating pillars, and a
proprietary Direct Lithium Extraction (“DLE”)
technology and process, Volt’s innovative approach to development
is focused on allowing the highest lithium recoveries with lowest
costs, positioning us well for future commercialization. We are
committed to operating efficiently and with transparency across all
areas of the business staying sharply focused on creating
long-term, sustainable shareholder value. Investors and/or other
interested parties may sign up for updates about the Company’s
continued progress on its website: https://voltlithium.com/.
Contact Information
For Investor Relations inquiries or further
information, please contact:
Alex Wylie, President &
CEOawylie@voltlithium.comM: +1.403.830.5811
Forward Looking Statements
This news release includes certain
“forward-looking statements” and “forward-looking information”
within the meaning of applicable Canadian securities laws. When
used in this news release, the words “anticipate”, “believe”,
“estimate”, “expect”, “target”, “plan”, “forecast”, “may”, “would”,
“could”, “schedule” and similar words or expressions, identify
forward-looking statements or information. Statements, other than
statements of historical fact, may constitute forward looking
information and include, without limitation, statements about the
qualification of the FT Units as “flow-through shares” under the
Tax Act, which is subject to the risks set out in the Prospectus
Supplement; the use of proceeds from the Offering and the
Concurrent Private Placement; the ability of the Company to incur
qualified Canadian Exploration Expenses with the gross proceeds of
the sale of the FT Units; the conduct of the Company’s preliminary
economic assessment for the Rainbow Lake project; the Company’s
continued exploration of its mineral properties; and general
business and economic conditions. With respect to the
forward-looking information contained in this news release, the
Company has made numerous assumptions. While the Company considers
these assumptions to be reasonable, these assumptions are
inherently subject to significant uncertainties and contingencies
and may prove to be incorrect. Additionally, there are known and
unknown risk factors which could cause the Company’s actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking information contained herein
including those known risk factors outlined in the Company’s
amended and restated annual information form and the Shelf. All
forward-looking information herein is qualified in its entirety by
this cautionary statement, and the Company disclaims any obligation
to revise or update any such forward-looking information or to
publicly announce the result of any revisions to any of the
forward-looking information contained herein to reflect future
results, events or developments, except as required by law.
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 news release.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/4402ef8d-4134-459c-90ea-1ad364f322dd
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