St-Georges Eco-Mining Corp. provided a status update on some of its metallurgical development initiatives. EVSX's management has worked on a complete strategic review of its research & development initiatives related to critical minerals production and recovery. A completed hydrogen production strategy is being developed with synergies to St-Georges Eco-Mining initiatives and opportunities for decarbonization initiatives globally. In addition to the hydrogen initiative, the new strategic plan is articulated around the creation of three centers of excellence: nickel, lithium, and fertilizers. These centers of excellence will leverage industries already in place and operating that can be clients and/or suppliers for EVSX. The deliverables and the objectives of the current feasibility study have been augmented to reflect this new reality. Battery Recycling & Metals Recovery: The initial location proposed for the Company's first commercial showcase plant in Baie-Comeau has been eliminated. The municipality is working at a fast pace with management to secure an option on two sites that will be part of the independent consultants' final report. These sites come in at a fraction of the costs of the original proposed site, are better suited for the change in the portion of the process related to metal recovery, and still allow the Company to initiate the commercial operations of its first showcase plant on schedule. The Company is developing an innovative and industry-disrupting method to produce ready-to-sell nickel ingots from the processing of any type of nickel-cadmium batteries. EVSX is currently reviewing the front-end operations that result in the recovery of aluminum, steel, copper, and carbon, with the objective to cover operational costs at this stage, leaving the Company with a black mass of nickel, cobalt, and cadmium for which size and recovery data was disclosed in a previous press release disseminated by the Company on January 13, 2022. Discussions are underway to secure multi-year access to large quantities of nickel-cadmium batteries and work through the current multi-year backlog of this type of battery currently held in storage. The feasibility study also covers lithium-iron-phosphate (LiFePO4) battery recycling and recovery. It is
expected at this point that the original commercial showcase plant will be using a similar process to convert these batteries into black mass. However, the recovery of these metals will be done at a separate location where the Company expects to deploy its lithium center of excellence. Partners, as well as potential clients and suppliers, are in discussion with management for this initiative. Locations in Saguenay (Ville de La Baie, QC), Contrecoeur (QC), and Hamilton (ON) are being reviewed as potential sites for these operations and are not covered by the current feasibility study.
A cost-benefit analysis for alternate locations for the nickel-cadmium operations is also being conducted
by the independent firm doing the feasibility study allowing additional flexibility for the Company and
maximizing resource deployment.
Other Metallurgical Processes Initiatives: A series of tests of the lithium recovery process from refractory material like zinnwaldite is planned for the next quarter of 2022. The source of the material is permitted and located in Quebec. Management
believes that unlocking this source of lithium could create an interesting source of royalties for the
Company in the future. Spodumene concentrate is being processed at the Company's contracted pilot plant in Val-des-Sources,
QC. Results from this initiative will be communicated to the public in the coming months. The lithium-in-clay process is also being completed, with a final report expected by the end of second quarter of 2022.