Arizona Lithium (ASX: AZL) has received approval from the Saskatchewan Ministry of Energy and Resources to commence stage one production at its Prairie lithium brine project, marking Saskatchewan’s first lithium brine production. The project is set to produce 150 tonnes per year of lithium carbonate equivalent (LCE) using direct lithium extraction.
The indicated resource at Prairie has been updated to 4.6 million tonnes of LCE, with the annual production potential increasing by 120% to 17,000 tonnes LCE. The project is located in Southeast Saskatchewan, known for having the highest-grade lithium brines in Canada, with reported lithium concentrations averaging 98 milligrams per litre and some wells reaching up to 259 mg/L.
Shares of Arizona Lithium have declined 40% this year, currently trading at Ao.6¢ in Sydney, correlating with a broader downturn in the lithium market where LCE prices have plummeted 86% to below $10,000 per tonne due to oversupply and reduced demand from electric vehicle manufacturers.
