Allkem (ASX:AKE) has nearly tripled the Mineral Resource Estimate (MRE) for its James Bay Lithium Project in Quebec, Canada, posting a 173% increase.
The company, which has a market capitalisation of $9.24 billion, reports the updated mineral resource totals to 110.2 million tonnes @ 1.30% lithium oxide (Li2O), including 54.3 million tonnes @ 1.30% Li2O in the indicated category and an additional 55.9 million tonnes @ 1.29% Li2O in the inferred category.
Allkem claims this updated MRE solidifies the status of the James Bay Lithium deposit in Quebec as a tier-one lithium pegmatite mineral resource and long-life asset.
Commenting on the MRE update, Allkem Managing Director and Chief Executive Officer (CEO) Martin Perez de Solay says: “James Bay is now one of the largest spodumene lithium assets and clearly has the potential to grow even further as the boundaries of mineralisation are tested through an additional drilling program commencing later in the year.
“The size and grade of this resource is amongst the best in the world”
The size and grade of this resource is amongst the best in the world and will underpin Allkem plans for future production and processing of lithium in Quebec.”
An independent mining consultancy based in Toronto, SLR Consulting, engaged in updating the MRE, which was based on the culmination of 2 drilling campaigns conducted since early 2022.
The company says the deposit remains open both along strike and at depth.
Allkem has implemented a resource growth strategy to continue to grow the MRE with further drilling. The company notes it is planning an additional drill campaign to start in mid-November 2023, which will include infill drilling and step-out exploration drilling.
In addition, further metallurgical testwork is required to demonstrate acceptable metallurgical recoveries below the current 0.5% Li2O cut-off grade. Allkem is considering this as an opportunity to be addressed in future studies.
Allkem is an ASX-listed company headquartered in Buenos Aires, Argentina. The company is focused on lithium chemicals and has a global portfolio of diverse and ‘high-quality’ lithium projects.
As of 30 June 2023, the company had US$648.4 million cash at hand, according to its latest quarterly report published on 27 July 2023.
Images: Allkem Ltd
