What attracted LiCo to Chile and, more specifically, the Purickuta lithium project?
TF: LiCo’s business is specifically focused on energy metals. We were always looking to add additional assets in South America and we investigated quite a few opportunities in Bolivia and Argentina, but we realized the best opportunity was in Chile. The political change happening in Chile may be favorable to lithium exploration and we thought the time was right to find a high-quality asset, start exploring, and hopefully get to the point where we can mine lithium for the benefit of our shareholders and the local community. Our plan is to minimize the impact to the environment and indigenous people, which is quite important for the Atacama region. We are looking at several different direct extraction technologies, including Tenova Bateman. With this technology we will be turning a historically low-tech business into a high-tech business.

MB: LiCo is earning into 50% ownership of the Purickuta project, and then we have the option to increase our interest to 60%. What appealed to us most about the project was that it is well located inside the salar. The water comes into the salar from the east and north and there are about 15 very large volcanoes on the east side of Salar de Atacama. Those volcanoes are important for producing volcanic ash that has a lithium component and the reduction of the volcanic ash liberates the lithium into the water, which then gets transported into Salar de Atacama, where you get the evaporation and the concentration of the lithium. Being in a good volcanic environment is essential and there are some big volcanoes in between Argentina and Chile.

What phase is the project in right now?

MB: We have completed a geophysical survey. The interpretation was that we have lithium brine from about 20 meters below surface to the depth of the survey, which is between 150 and 200 meters. Now, our task is to drill to a depth of 300 meters, which is quite deep, and although the hydrologists feel we will be able to produce at about 60 meters, we would like to demonstrate a lithium brine resource from near surface to depth that helps to create the idea of the potential for a significant resource. What is unique about our plan at Salar de Atacama is that we are looking to implement direct extraction technology instead of the traditional evaporation pond model. Our hope is to see if the property can support about 4,000 tonnes of lithium carbonate per year using this technology. With a direct processing technology we would not have to wait 18 months for the lithium to precipitate and evaporate. Not only is the speed of the process beneficial, but it is also not invasive environmentally, as we would not be evaporating water into the air but rather, after the process takes the lithium out of the water, recirculating the water and putting it back into the salar.

We have a 160-hectare concession and we are only looking to have production from one or two wells. At a rate of 50 liters per second and a hoped for grade of around 800ppm we could produce up to 4,000 tonnes of lithium carbonate per year and then sell it on the spot market. The spot market for lithium has traded as high as $20,000 per tonne. Taking into account the operational costs, we may be able to produce one tonne of lithium carbonate for about $3,500, so there are really strong margins. We would like to fully build out the Purickuta lithium project and eventually take it to production ourselves.

TF: The operation should be fairly prolific. The indication we have so far is that the aquifer is quite deep and could even pass the 300-meter mark. I think, practically, that would give us a significant resource on the property, given the expected concentration levels. The future is quite bright for our property there, but we must first get the results and propose the proper exploitation program.

How would you characterize LiCo’s relationship with the local community?

MB: LiCo has strived to create a good relationship with the local community. Many of the locals work for SQM, so they are open to the idea of mining, but their main concern is the water and they like the fact that LiCo is not building an evaporation pond. We also believe that with our technology we can produce some agricultural water for the local community, which is a big benefit for them.

What are your expectations in terms of working with the government?

MB: There is a government protocol in place which we will follow. We know that some Chilean government offices would like to see advanced technology, like what we are proposing introducing to Chile. We are working with the intent of being the lead player in this regard. After we get our drilling completed and have positive results, we can move ahead quickly, but we are going to work within the rules and regulations that exist. There are a lot of unemployed miners in Chile and it does not look good for the government to stifle a mining project, especially one that is introducing new technology and has the support of the mining community.

What is LiCo’s long-term vision for Chile?

TF: LiCo’s long-term vision is to have multiple properties in Chile. We just announced that we have opened an office in Chile, so we are committed long-term to the country. As we continue to explore new properties we will add more resources to the country. There are still a lot of great lithium exploration projects that are going to become available as the country opens up to extracting more lithium and having more secondary lithium processing. The future is quite bright for junior explorers like LiCo and I believe there are going to be quite a few more opportunities that exist in Chile.