Pilbara Minerals Limited (ASX: PLS) (Pilbara Minerals or the Company) is pleased to advise that its mid-stream value-added lithium growth strategy has taken another important step forward, with the completion of a Scoping Study in conjunction with Calix Limited (ASX: CXL) (Calix).
The Scoping Study, which was undertaken by Lycopodium Minerals (ASX: LYL), provides preliminary support for the technical viability of constructing a demonstration-scale chemicals facility producing value-added lithium phosphate salts via an innovative refining process at Pilbara Minerals' Pilgangoora Operation ('Pilgangoora') in Western Australia. The Scoping Study is the first economic evaluation of the Mid-Stream Project which has been prepared to an accuracy level of +/-40% (for Capital costs) and +/-30% (for Operating costs).
It represents a preliminary study of the potential technical and economic viability of the proposed process path and demonstration scale facility development. Any decision to proceed will be the subject of more definitive studies, as part of a proposed joint venture with Calix. Studies to date are based on a low level of technical and economic assessments that are not yet sufficient to support a business case to proceed with the construction and development of the demonstration plant, or to provide certainty that the conclusions of the study will be realised.
Further, more definitive studies, including on operating costs and whether there is a viable market for lithium phosphate will be required as part of the proposed joint venture with Calix, before any final investment decision can be made to proceed with the development of the demonstration plant
PROJECT BACKGROUND
Following execution of a Memorandum of Understanding (MoU) in May 2021 (refer ASX Announcement dated 11 May 2021) between Pilbara Minerals and Calix, a Scoping Study has been completed by Lycopodium Minerals in conjunction with the Pilbara Minerals and Calix teams. The study's purpose was to assess the technical viability of developing a demonstration scale chemicals facility at Pilgangoora to produce lithium salts from finesflotation spodumene concentrate produced at Pilgangoora. Thereby supporting a potential pathway towards future commercial production of value-added lithium products (refer ASX Announcement dated 21 December 2021).
Mid-Stream Project Objective - Pursuing a superior lithium carrier product
The lithium-ion battery supply market is rapidly evolving with large scale development occurring through all segments of the supply chain. Several prominent themes are shaping the industry including product cost (per lithia unit), product quality (purity), carbon energy reduction and waste management (particularly for the European market). The objective of the Mid-Stream Project is to deliver a superior value-added lithium raw material that outperforms across the key metrics of product cost, quality, carbon energy reduction and waste reduction/handling. The project work completed to date has consisted of work to explore alternative solutions to achieve these aims, including reviewing and testing alternate process paths, equipment selection and end-product types. The Scoping Study undertaken by Lycopodium Minerals has confirmed the technical viability of the Mid-Stream project to deploy a novel calcination technology and integrated chemical concentration process at the Pilgangoora Operation to produce a new endproduct, with the preferred product at this stage of study being lithium phosphate salt.
Process Design
The Scoping Study has confirmed the technical capability of Pilbara Minerals' innovative flowsheet, which is capable of producing lithium phosphate salt from fines flotation spodumene concentrate from the Pilgangoora Operation. Initial test-work programmes to confirm the flowsheet were undertaken using a produced synthetic lithium sulphate leach solution to produce small quantities of lithium phosphate precipitate. Subsequent test-work phases further developed the flowsheet to produce high purity lithium phosphate precipitates from Calix-calcined Pilbara Minerals fine flotation spodumene concentrate. Following laboratory scale test-work, lithium phosphate salts has been selected as the preferred product, having demonstrated superior performance to those other alternatives evaluated to date; however, the Mid-Stream flowsheet is able to incorporate the production of other lithium-bearing salts, with minor modification to process flow (however additional equipment would likely be required). This will continue to be evaluated in future study works. Flowsheet test-work to-date (comprising pilot-scale calcination and laboratory-scale chemical processing) has demonstrated >90% overall lithium recovery to a final high purity lithium phosphate salt product
Contact:
Ken Brinsden
Tel: +61 (0)8 6266 6266
ABOUT PILBARA MINERALS
Pilbara Minerals is the leading ASX-listed pure-play lithium company, owning 100% of the world's largest, independent hard-rock lithium operation. Located in Western Australia's resource-rich Pilbara region, the Pilgangoora Operation produces a spodumene and tantalite concentrate. The significant scale and quality of the operation has attracted a consortium of high quality, global partners including Ganfeng Lithium, General Lithium, Great Wall Motor Company, POSCO, CATL and Yibin Tianyi. While it continues to deliver a low-cost, quality spodumene to market, Pilbara Minerals is pursuing a growth and diversification strategy to become a sustainable, low-cost lithium producer and fully integrated lithium raw materials and chemicals supplier in the years to come. Through execution of this strategy, Pilbara Minerals is positioned to become a major player in the rapidly growing lithium supply chain, underpinned by increasing demand for clean energy technologies such as electric vehicles and energy storage as the world pursues a sustainable energy future.
ABOUT CALIX
Calix is a team of dedicated people who are urgently developing great businesses, leveraging our patented technology, that deliver positive global impact. The core technology is being used to develop more environmentally friendly solutions for water treatment, CO2 mitigation, biotechnology, advanced batteries, and more sustainable mineral and chemical processing. Calix develops its technology via a global network of research and development collaborations, including governments, research institutes and universities, some of world's largest companies, and a growing customer base and distributor network for its commercialised products and processes.
FORWARD LOOKING STATEMENTS AND IMPORTANT NOTICE
This announcement may contain some references to forecasts, estimates, assumptions, and other forward-looking statements. Although the Company believes that its expectations, estimates, and forecast outcomes are based on reasonable assumptions, it can give no assurance that they will be achieved. They may be affected by a variety of variables and changes in underlying assumptions that are subject to risk factors associated with the nature of the business, which could cause actual results to differ materially from those expressed herein. All references to dollars ($) and cents in this announcement are to Australian currency, unless otherwise stated. Scoping and other technical studies in respect of the Mid-Stream Project have been undertaken to determine the potential viability of the demonstration plant and to reach a decision to proceed with more definitive studies and enter into a joint venture agreement. Each scoping study has been prepared to an accuracy level of +/-40% (for Capital costs) and +/-30% (for operating costs). Each scoping and technical study is based on low-level technical and economic assessments and is insufficient to provide assurance of an economic development case at this stage or provide certainty that the conclusions of the studies will be realised. The results of the studies should not be considered a profit forecast or production forecast.
PILBARA MINERALS LIMITED 
