It isn’t everyday that one of the heaviest metals and the lightest metals are found in the same rocks. But for uranium-focused Plateau Uranium (TSXV:PLU), the Macusani deposit has netted just that. In its latest press release, Plateau unveiled a mineral resource estimate for the lithium mineralization found alongside the uranium mineralization at four of the company’s 14 uranium deposits. 

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Calculated within the defined uranium resource footprint using a 75 ppm uranium cut-off, the project has an indicated lithium resource of 52.3 million tonnes at 0.13 percent grading, containing 67, 000 tonnes Li2O, and an inferred lithium resource of 87.7 million tonnes at 0.12 percent containing 109,000 tonnes Li2O. According to Plateau, “[b]y-product lithium production has the potential to add value to the Company’s compelling uranium story that already has lowest quartile potential operating costs of $17.28/lb U3O8.” Plateau also noted that the average potassium grade included in the lithium resource estimates is 3.71 percent for the indicated resource and 3.73 percent for the inferred resource.

Speaking to how the combination of the two metals will help the company’s position in Peru, Plateau Uranium CEO Ted O’Connor told Investing News Network that “The Peruvian government understands the Green House Gas emission-free energy that nuclear provides, and is supportive of future uranium production in the country. The proposition of extracting lithium as a by-product only strengthens the global green energy benefits, if the lithium proves to be a solid economic proposition.”

O’Connor believes that the combination of these two green energy metals could attract a new level of interest from potential partners, investors, producers and even end users. The CEO looked, for instance at nuclear utilities, “be they government or private enterprises are actually energy companies with a variety of electrical generating methods in their electricity mix. With increasing amounts of renewables requiring lithium battery technology for storage during low generating periods, these utilities would have an added interest to see such a project developed,” he said.

Plans for the lithium resource

Plateau has confirmed internal test work on the lithium mineralization which confirms that the it can be successfully leached with sulphuric acid. The company anticipates that the lithium carbonate and potassium sulphate should be the potential products precipitated from the leach solutions using the leaching process, however, more engineering and testing is required in order to truly assess the possible impact to the project economics.

That said, O’Connor explained that Plateau has plans to “complete additional extraction leach tests to improve recoveries and understand the leachable lithium, leach kinetics and optimize leach conditions.’

This work will provide the company with a much clearer idea of the technical inputs required in order to establish the potential operating costs and additional capital requirements in adding a lithium extraction circuit.

“The rock would be mined and processed for uranium already, and adding a lithium extraction circuit to process this material prior to being stored in a tailings facility should add value to the project.”

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What about the uranium?

Plateau Uranium’s current investor base has no doubt been attracted to the company based on its uranium holdings. Following the company’s January preliminary economic assessment which highlighted a cash operating costs average of US$17.28/lb U3O8 over the life of mine, Plateau has made a name for itself as a uranium junior.

With the addition of lithium to its resource base, investors might wonder if Plateau has plans to shift focus. O’Connor was quick to quell any fears, telling INN that “Plateau Uranium is a uranium company – full stop.”

“Our focus is developing our robust uranium project first and foremost, however, if by-product lithium extraction and production proves to be economic, we need to pursue this further on behalf of our shareholders. I believe investors, regardless of commodity focus will understand, appreciate, and indeed support pursuing lithium to enhance shareholder value.”

Following the news, Plateau Uranium’s share price was up 7.14 percent, to trade at $0.38.

Securities Disclosure: I, Vivien Diniz, hold no direct investment interest in any company mentioned in this article. 

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

Plateau Uranium is a client of the Investing News Network. This article is not paid-for content.

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