John Wightman, managing director of the Goldfields Group of Companies, offers the latest updates on the Lake Brazil lithium project, covering strategic benefits, exploration progress and future possibilities.
The Lake Brazil Lithium Project, located in southwestern Nova Scotia, has emerged as a key player in the global lithium supply chain. With the ever-increasing demand for lithium, projects like Lake Brazil will be able to ensure a stable and sustainable supply of this critical mineral, with the expansion of electric vehicles, battery storage and clean energy solutions. It’s becoming important.
In this interview with John Wightman, we will discuss the unique benefits of the project, recent exploration developments, and future plans. Join us in what makes this project an outstanding asset in the global lithium market.
Could you please show us the Lake Brazil project and explain what makes it an outstanding asset?
We operate in a very supportive government environment. Our state’s premier, Tim Houston, recently expressed strong support for important mineral extraction, particularly lithium. This is great news for us. We have enthusiastic support from government officials at all levels, and our teams working in the regulatory sector hope that this project will move forward.
From a location standpoint, we are located at the southwest tip of Nova Scotia north. It is about 43 degrees north. This place gives a relatively mild climate, generally mild winters. Additionally, Yarmouth Port is approaching its main delivery infrastructure, just 30 minutes away. If you decide to export your product to the East Coast, you can use a barge heading to the sea to reach various destinations.
Beyond logistics, we are well positioned from an infrastructure perspective. We are within 1 km of the power grid and are surrounded by parentheses by paved highways on either side. Another advantage is the local workforce. This means you don’t need to set up expensive mining camps. Most workers commute for less than 30 minutes. The town of Yarmouth serves as a local service centre, providing easy access to equipment, supplies and services.
The deposit itself is approximately 1.2% lithium oxide grade and meets international standards. Our spodumene crystals are very large and can be measured up to 3 meters in length. This large crystallinity is beneficial for processing as it is more difficult to process small particle spodumene, sometimes called “rice spodumene.”
Last year, we announced an estimate for Otome Resources (MRE). Has there been any further progress since then?
Since its announcement, we have prepared small bulk samples and sent them to SGS Lakefield, one of the best metallurgical testing companies in North America and the world. They conduct a comprehensive test of the materials we provide.
As you may know, lithium prices peaked around December 2022, but have since declined by more than 80% over the past 18 months. At these low prices, the mines are currently not making profits, making it difficult to secure funds to proceed with the project. However, in the last 6-8 weeks, I have begun to see turnarounds. Prices were steadily falling, but now they are beginning to rise again. It will be interesting to observe what will happen after the Chinese New Year, when the market is becoming more active.
It usually takes about four years to develop a mine from the current stage. The next important step is to complete a preliminary economic assessment (PEA), also known as scoping research, once the sample analysis from Lakefield is complete. I am sure the results are positive. If so, our Australian partner Lithium Springs will list it in Australia and raise the funds needed to advance towards a bankable feasibility study. The temporary slowdown caused some delays, but I think I’ll extend the timeline by about a year.
Currently, our MRE stands at 10 million tons of ore, but there is strong evidence of an additional pegmatite layer in the property. Our long-term forecast suggests a potential rise of 20-30 million tonnes. If you extract 1 million tonnes a year, that will lead to 20-30 years of mining life. Notably, only 5% of the properties have been drilled so far, leaving important space for further expansion.
You previously said that the government is increasing support for important minerals. Are you hoping for continuous investment? How will that help drive the industry forward?
The main role of government is not necessarily direct funding. However, during the early exploration stage, seed funding is important. As we are in high-level stages, government support will be more about streamlining the permitting process.
Nova Scotia has one of the most stringent environmental assessment processes in the world. We take environmental protection seriously, but these steps can take up to four years. However, we believe that with the Prime Minister’s clear order to his ministers, we can significantly reduce this timeline – potentially less than a year.
The long-term timeline is one of the biggest hurdles for mining projects across Canada. Fortunately, there is a growing awareness at both the state and federal levels that these processes need to be streamlined. The federal government is also working with states to make regulatory approvals more efficient.
What are your important goals for the next 12 months?
I’d like to see the peas complete by this time next year. This will allow Lithium Springs to secure funding and set the stage for a large drilling programme within 12-14 months. The drillings done so far have not yet met the requirements for bankability feasibility studies, so a wealth of infal drilling must be carried out to confirm resource estimates. Although we are confident in our forecasts, financial markets require additional drilling data before considering investing.
Though the lithium market is declining sharply, benchmark analysts, one of the industry’s most reliable sources, predict that a supply deficit will emerge over the next few years. By 2028, there may not be enough lithium produced to meet market demand.
This timing is in good harmony with our project. If lithium prices rise over the next 3-5 years, our mines will become more and more viable, secure funding and move to production. We are already in discussion with potential offtake partners and have great interest in securing Spodumene concentrates from our site.
If it is properly positioned for success in Canada, or globally, Lake Brazil is within it. Its location, resource size, cost-effective operational environment, proximity to supply centres and access to a skilled workforce are all outstanding assets. If lithium mining has a future, we believe that Lake Brazil will become an important player in the landscape.
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