TORONTO, May 2, 2018 /CNW/ - Namibian lithium
developer and emerging lithium concentrate producer Desert Lion
Energy Inc. (TSXV: DLI) ("Desert Lion" or the
"Company") is pleased to announce the completion of delivery
of 30,321 tonnes (t) of lithium concentrate bound for the Company's
off-take partner, Jiangxi Jinhui Lithium Co. Limited's
("Jinhui"), lithium carbonate conversion plant located in
Yichuan, China.
"Desert Lion is proud to have completed the delivery of the
first commercial shipment of lithium concentrate to our offtake
partner Jinhui," commented Tim
Johnston, President and Chief Executive Officer of Desert
Lion Energy. "In the last twelve months, the Company has completed
and received approval for its Environmental Impact Assessment for
Phases 1 and 2 of its production plan; received the permits for the
processing of the historic run of mine tailings; completed over
20,000 metres of exploration drilling and high resolution
radiometric and magnetic survey; and signed a strategic offtake
agreement with Jinhui, which included the receipt of a US$4.5MM prepayment.
"Completion of this shipment is another key achievement for the
team in a short period of time. We look forward to continuing this
momentum as we move ahead with Phase 1 production," stated Mr.
Johnston.
Production Schedule and Key Milestones
The Company's production schedule remains on track with
additional production of approximately 120,000t – 130,000t of
lithium concentrate expected to be produced from stockpiled
material during Phase 1 operations. In support of the
Company's plan to produce a higher value lithium product, Desert
Lion continues with the construction of its Phase 1 floatation
plant with commissioning expected by the end of Q3 2018. Upon
completion, the Phase 1 flotation plant will be capable of
processing approximately 350,000t – 400,000t of feed per year.
Plans to publish a mineral resource estimate and preliminary
economic assessment ("PEA") on the Desert Lion lithium
project in Namibia (the
"Project") is scheduled for the second quarter of 2018. In
addition to containing the Company's mineral resource estimate on
the Project, the PEA will include an economic analysis on the Phase
1 floatation plant, as well as Phases 2 and 3 of the Company's
production plan.
Lastly, Desert Lion expects to receive a decision on its Phase 2
mining license, which is currently under review by Namibia's Ministry of Mines and Energy, by end
of the second quarter 2018; and finalize Jinhui's C$13MM investment
in Desert Lion in the next 6-8 weeks, which will entitle Jinhui to
a 15% equity stake in the Company.
About Desert Lion Energy
Desert Lion Energy is an emerging lithium development company
focused on building Namibia's
first large-scale lithium mine to be located approximately 210km
from the nation's capital of Windhoek. The Company's Rubicon and Helikon
mines are located within a 301km2 prospective land
package, with known lithium bearing pegmatitic mineralization and
the Company is currently in Phase 1 of its production plan,
producing and exporting lithium concentrate from stockpiled
material. The project site is accessible year-round by road and has
access to power, water, rail, port, airport and communication
infrastructure.
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking information"
within the meaning of applicable securities laws. Generally, any
statements that are not historical facts may contain
forward-looking information, and forward-looking information can be
identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget"
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or indicates that certain actions, events or results
"may", "could", "would", "might" or "will be" taken, "occur" or "be
achieved." Forward-looking information includes, but is not limited
to: statements and expectations regarding the targeted additional
tonnage of lithium concentrate production from Phase 1 operations;
the timing for the construction and commissioning of the Company's
Phase 1 floatation plant; the exercise of the conversion option by
Jinuui pursuant to the Offtake Agreement; the anticipated timeline
for publication of the mineral resource estimate and preliminary
economic assessment; the anticipated timeline for the approval of
the Company's application for its Phase 2 mining license; and the
Company's planned work program for the Project and its exploration
and development schedule and timetable.
Forward-looking information is based on certain factors and
assumptions management believes to be reasonable at the time
such statements are made, including but not limited to, continued
exploration activities, lithium and other metal prices, the
estimation of initial and sustaining capital requirements, the
estimation of labour and production costs, the estimation of
mineral reserves and resources, assumptions with respect to
currency fluctuations, the timing and amount of future exploration
and development expenditures, receipt of required regulatory
approvals, the availability of necessary financing for the Project,
permitting and such other assumptions and factors as set out
herein.
Forward-looking information is subject to known and unknown
risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of the
Company to be materially different from those expressed or implied
by such forward-looking information, including but not limited to:
risks related to changes in lithium prices; sources and cost of
power and water for the Project; the estimation of initial capital
requirements; the lack of historical operations; the estimation of
labour and operating costs; general global markets and economic
conditions; risks associated with exploration, development and
operations of mineral deposits; the estimation of initial targeted
mineral resource tonnage and grade for the Project; risks
associated with uninsurable risks arising during the course of
exploration, development and production; risks associated with the
estimation of targeted production tonnages from Phase 1 operations;
risks associated with currency fluctuations; environmental risks;
competition faced in securing experienced personnel; access to
adequate infrastructure to support exploration activities; risks
associated with changes in the mining regulatory regime governing
the Company and the Project; completion of the environmental
assessment process; risks related to regulatory and permitting
delays; risks related to potential conflicts of interest; the
reliance on key personnel; financing, capitalization and liquidity
risks including the risk that the financing necessary to fund
continued exploration and development activities at the Project may
not be available on satisfactory terms, or at all; the risk of
potential dilution through the issuance of additional common shares
of the Company; the risk of litigation.
Although the Company has attempted to identify important
factors that cause results not to be as anticipated, estimated or
intended, there can be no assurance that such forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance
on forward-looking information. Forward-looking information is made
as of the date of this presentation and the Company does not
undertake to update or revise any forward-looking information this
is included herein, except in accordance with applicable securities
laws.
Cautionary Note Regarding Potential Quantity of Stockpiled
Material
The potential quantity of stockpiled material located on the
property as disclosed herein is an estimate only and is conceptual
in nature; there has been insufficient exploration to define a
mineral resource and it is uncertain if further work will result in
this estimate being delineated as a mineral resource. Estimates
provided are based on initial prospecting work completed by the
Company.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Desert Lion Energy