Galaxy extends Mt Cattlin feasibility study

Galaxy Resources, the Western Australian mineral resources company, has announced an update on its Bankable Feasibility Study (BFS) for the development of the Mt Cattlin Lithium/Tantalum project.

The company has reassessed the BFS parameters to include lithium carbonate production and is in the process of appointing an international engineering group to complete the lithium carbonate test work and process design.

In addition, discussions with several potential strategic marketing partners are taking place.

Drilling at Mt Cattlin in 2007 defined an initial Mineral Resource estimate of 24.8 million tonnes at 8.2% spodumene, 0.56% Li2O and 120 ppm Ta2O5 containing an estimated 2.03 million tonnes spodumene and 6.62 million lbs Ta2O5.

Included within the initial Mineral Resource is a higher grade Mineral Resource of 12.3 million tonnes at 14.7% Spodumene, 1.00 % Li2O and 135 ppm Ta2O5 (above a 4000 ppm Li2O cut off) for 1.81million tonnes spodumene and 3.80 million lbs Ta2O5.

It is expected that further planned in-fill and extension drilling will expand the Mineral Resource.

Current prices for spodumene concentrate grading 6% Li2O range from US$400 to US$500 per tonne, for tantalum concentrate from US$45 to US$50 per lb contained Ta2O5, and for lithium carbonate (Li2CO3) US$6000 to US$6500 per tonne.

Based on current prices the resource at Mt Cattlin is estimated to have an in-situ value in excess of $1bn with scope to be expanded.

A site programme testing the water table and flow rates in existing drill holes will commence during June.