News: Video: JV to develop Sileach technology

Analyst Comment:  This is a win-win for both Lithium Australia (LIT) and Pilbara Minerals (PLS).  

LIT benefits as they have access to the largest undeveloped hard rock lithium deposits in the world – all without drilling one hole.  This essentially eliminates the risk of not having their own resource and ensures the company has feed stock for their Sileach technology for many years to come.  They also have no mining risk nor do they have to contribute towards the capital development of Pilgangoora.

PLS benefits as this is essentially a low risk bet on Sileach.  If the testwork and feasibility studies prove successful, PLS will move from becoming a potential lithium concentrate producer ($450 – $600/t) to become a lithium carbonate producer (LT contract price +$6,500/t).  This significantly increases the long term revenue and profitability of the company.   Alternatively, if the testwork is not favourable, PLS outlay is limited to a small amount of spodumene concentrates for testing.

We look forward to further information being released in the near future regarding the test work, pilot testing and the Definitive Feasibility Study.