Arizona Lithium (ASX:AZL) has awarded Rhythm Engineering drilling and engineering and supervision services work at its former’s Prairie Lithium Project in Saskatchewan, Canada.
Arizona, which has a $75.13 million market capitalisation, says planning is underway with field activities to begin in Q2 2024 on the already built pad #1, where a well licence has been received for a 2nd well. Drilling is now permitted to be undertaken at both wells.
Exploration will be conducted into 2 new identified zones prospective for enriched lithium brine below the Duperow formation and the resource of 6.3 million tonnes of lithium carbonate equivalent (LCE).
Drilling is anticipated to begin in Q2 2024 at Pad #1. Subsequent wells will be drilled on pads #2 and #3 with the combined three pads anticipated to support the production of 6,000 tonnes of LCE.
Arizona notes drilling and completion is another milestone towards production of lithium brines in the first quarter of 2025.
Arizona Lithium Managing Director Paul Lloyd says the company is confident Rhythm is capable of completing what has been described as a ‘key task’ leading up to potential production of lithium brines in 2025.
“We were very impressed with the proposal from Rhythm Engineering Inc. and although we had a plethora of options, we are confident that Rhythm is the group capable of completing this key task with the highest speed and quality.
We look forward to keeping the market up to date with field activities as well as long lead time purchases/orders in order to continue ticking the boxes to successfully start production of lithium brines in 2025.”
Arizona’s Prairie Project sits on the Williston Basin of Saskatchewan, Canada and has access to key infrastructure including electricity, natural gas, fresh water, paved highways, and railroads.
As of 30 December 2023, Arizona Lithium had $22.593 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Arizona Lithium
