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Below is our recent interview with Ian Stalker, Chairman at Plateau Energy Metals:
Q: Could you provide our readers with a brief introduction to Plateau Energy Metals?
A: PLU is a lithium and uranium exploration and development company with a unique, new, large, and growing lithium discovery in southeastern Peru. We have been working in Peru since 2005. We have 910 sq km of exploration concessions covering virtually all of the Macusani Plateau – an emerging lithium-uranium district. We have a large resource estimate coming out for our new shallow, high-grade volcanic Falchani lithium discovery, having drilled off only about 25% of the mapped extent of the lithium mineralized horizon. Falchani should eventually turn into one of the largest lithium deposits in the world. Our lithium mineralization is unique in the world because the lithium is not hosted in any true lithium minerals. It is hosted in volcanic glassy matrix of these previously unknown felsic volcanic tuffs. This makes leaching the lithium from these rocks much simpler and low-cost using a straightforward crush-grind with warm sulfuric acid leaching to leach 90% of contained lithium into solution. The deposit itself is located from surface to 100 m below surface and is up to 150 m thick with remarkably consistent lithium contents in excess of 0.7% Li2O throughout the entire unit. This will lead to simple, cost effective, open pit mining at less than 1:1 waste:ore stripping ratio.
We also have all known uranium resources in Peru with over 124 million pounds (U3O8) of potentially economic uranium in a series of unique, very young, uranium deposits that have lowest quartile production cost potential of US$17.28/lb from our economic studies. Of recent days, the ‘uranium market’ space has been showing signs of life after a pretty dormant period. The Nuclear Reactor build in China-India in particular continues unabated.
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Q: What advantages does Plateau have over its competitors?
A: Our separate, unique deposits of lithium and uranium are situated near surface and can be mined by simple open pit methods. The metallurgy of both the lithium and uranium deposits are excellent and will we anticipate be low-cost operations with high, and very scalable production potential.
The project is in Peru – one of the best mining jurisdictions in the world. There is significant, excellent infrastructure nearby, including: the paved inter-oceanic highway within 2 km of the project boundary that links the project to coastal ports in Peru; the power cost delivered to site is competitive by world standards due to the fact there is a large hydro-electric generating station with excess capacity located 20 km down river from our project with existing powerlines passing within 3 km of the project, there is large local sources of sulfuric acid with capacity to meet our requirements on the inter-oceanic highway link, and a supportive local communities. There continues to be excellent government support at both regional and national levels.
One further advantage for Investors, is they get two investments for the price of one i.e. they get the opportunity the Lithium brings, and the opportunity the Uranium brings- that doesn’t happen too often.
Q: What’s the potential of Lithium?
A: We are seeing the commitment to vehicle electrification from many countries, and virtually all major vehicle manufacturers, so this demand for batteries will fuel lithium demand substantially. However, we see the rise of low-carbon electricity generation, and the necessary battery storage required, as something that could lead to even exponentially higher lithium demand going forward. There are currently few commercial alternatives to lithium ion batteries on the horizon, as this technology has over 20 years of commercial use. With current Li-battery improvements being made, and the amount of research and development being thrown at Li-battery technology, we don’t forecast any drop in lithium demand for a very long time.
Q: Is there enough of it for everything?
A: There are a lot of lithium projects around the world, but not all have the same positive economics. We see Plateau Energy Metals as having lowest production cost potential of non-brine lithium projects, and we are aiming to rival some of the lowest cost brine projects when all is said and done. With such a stable and increasing future demand for lithium, the price should stay well above the US$10,000/t LCE in spite of increasing production announcements by producers. We aim to fill future lithium demand and ultimately, displace higher cost producers if there is a downturn in lithium price.
Q: What is the biggest challenge you’ve faced in your business and how did you overcome it?
A: We have always had a difficult time explaining our lithium and uranium deposits because they are both geologically unique deposit styles in the world. People are finally starting to recognize what we know – their uniqueness in mineralization style, geology and geometry make their mining and processing simple and low-cost. Their uniqueness has initially been a curse when we talk about Plateau Energy Metals valuation, but ultimately this uniqueness will eventually be recognized as their blessing! It should be noted both metals– Lithium and Uranium can be mined separately.
Q: What does the future hold?
A: We are just in the process of completing a NI 43-101 Mineral Resource Estimate for the Falchani Lithium deposit that will be coming out over the next few weeks. It will be large and robust, but has the potential to grow significantly in the future as we have only drill tested approximately 25% of the currently mapped and sampled footprint of the Falchani Li-rich tuff unit. We remain confident that Falchani will grow into one of the largest lithium deposits in the world.
We have been completing processing studies with ANSTO Minerals in Australia – one of the premier expert groups in lithium production processing in the world. They have already helped us improve lithium leaching to achieve 90% extraction from the Falchani project, and are currently working on producing battery-grade lithium carbonate from Falchani and testing the potential flowsheet to be used. This work is progressing well, and we should see these initial process results early this summer.
The resource base and process work understanding and flowsheet development work will feed into a Preliminary Economic Assessment planned to be completed by around the end of 2018.
On the uranium front, we will be adding higher grade lbs to our existing U3O8 resource base -this will we imagine, assist the economics of this our stand alone uranium project- and this project is already competitive with industry norms.
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Q: Where is the company headed?
A: I would say that with our two-headed monster of both lithium and uranium deposits, we have nowhere to go but upwards and onwards. The world needs low carbon energy, including both renewables (with battery storage) and nuclear for clean, reliable base load power. The world also needs less pollution through much higher adoption of the electrification of transport. We hope to help give the world what it needs through future lithium and uranium production from Peru.
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