Grid Metals Corp. has announced that it has received a scoping-level mill reconfiguration study completed by Primero Group for the True North Mill in Bissett, Manitoba. The study examined the viability and costing of reconfiguring the existing mill to process lithium ore from Grid’s Donner Lake property and produce a saleable lithium concentrate. Based on the positive findings of the study, Grid is proceeding with the lease agreement with 1911 Gold Corporation, the owner of the True North Mill.
The Primero Study outlined best-in-class capital intensity and quantified operating costs, giving Grid the confidence to move forward with the mill lease. The study estimated the mill capacity at 450,000 tonnes per annum of lithium feed, with an optimal grind size of 125 microns. The initial capex for the mill reconfiguration is estimated at C$50 million, including the addition of magnetic separation and mica flotation circuits required to produce a marketable spodumene concentrate.
The processing cost was estimated at C$34.81 per tonne processed, with labour and reagents accounting for the majority of the costs. Primero also identified opportunities to reduce G&A costs. The study recommended a value engineering phase to further optimize the mill and reduce costs.
Grid Metals CEO, Robin Dunbar, stated, “The work completed by Primero has outlined a low capital intensity project and has quantified operating and capital costs. This study gives us confidence to move forward with the lease agreement for the True North Mill. With the True North Mill lease, the Donner Lake lithium project can be one of the next producing lithium projects in North America.”
FAQ:
Q: What is the purpose of the mill reconfiguration study conducted by Primero Group?
A: The study aimed to assess the viability and costing of reconfiguring the True North Mill to process lithium ore from Grid’s Donner Lake property.
Q: Who is the lease agreement being made with?
A: Grid Metals Corp. is proceeding with the lease agreement with 1911 Gold Corporation, the owner of the True North Mill.
Q: What is the estimated mill capacity for processing lithium feed?
A: The estimated mill capacity is 450,000 tonnes per annum.
Q: What is the estimated initial capital expenditure for the mill reconfiguration?
A: The initial capex is estimated at C$50 million, including the addition of required circuits for producing a marketable spodumene concentrate.
Q: How much is the estimated processing cost per tonne of lithium concentrate produced?
A: The estimated processing cost is C$34.81 per tonne processed.
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