Orocobre released a technical report on NI43-101 and confirmed that the resource upgrade of the Cauchari Lithium Project in Jujuy, Argentina has been completed. The report was prepared by FloSolutions S.A.C and confirmed that the inferred resource to a volume has been increased to approximately 1,200 million cubic metres of brine at average grades of 450 mg/l lithium and 4,028 mg/l potassium for 3.0 Mt of Lithium Carbonate Equivalent (LCE) and formed as the basis for a Preliminary Economic Assessment which is yet to be completed in Q3 2018.
The report highlighted few points like +6-fold increase of the inferred resource to 3.0 Mt LCE at Cauchari at 450 mg/l Lithium. Further, it also demonstrated that the updated resource covers a significantly larger area and extends to a greater depth in the NW and SE Sectors. It has a significant potential for additional resource expansion at depth. Moreover, it was found that the brine has excellent chemistry for processing and the Mg/Li ratio averages 2.5 which is very similar to the Olaroz operation. The drilling activity at Phase III is underway which will upgrade this inferred resource and underlying brine and it indicates resources for the Definitive Feasibility Study that is scheduled for completion in Q2 2019. This evaluation program is being managed by a joint venture partner Advantage Lithium Corp. (TSX Venture: AAL) (OTCQX: AVLIF) and it holds 75 per cent of Cauchari. Orocobre owns 25 per cent directly in the joint venture and 29 per cent in Advantage Lithium’s issued capital.
Further, the group provided an update on its lithium production at Olaroz and reported an increase of 28 per cent on the March Quarter in production and achieved the second highest ever production volume of 3,596 tonnes in June quarter. Sales were recorded at 3,496 at a record realised average price of US$13,611 per tonne on a FOB basis and that amounted to the quarterly sales (for June 18) of US$47.6 million. Production for FY18 was up by 5 per cent and amounted to 12,470 tonnes with a total revenue of US$152 million, which was up by 27 per cent on the previous year. The stock was trading at $5.36 with an increment of 3.675 per cent as on 2 July 2018 (1:30 PM AEST).
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