PROMISING LITHIUM CARBONATE PRELIMINARY RESULTS

Highlights

• Preliminary testwork by Outotec Oyj (Outotec) indicates excellent potential to produce battery grade lithium carbonate using the 'Soda Ash' processing technique
• Both the Sulphuric Acid and Soda Ash leach routes were evaluated and proved viable processing methods
• Initial leaching recoveries for both routes was in excess of 90 % which was extremely pleasing
• Soda Ash chosen as preferred processing route due to the quality of the product produced and the slightly lower operating cost
• Outotec samples even meet the most stringent levels of electrochemical grade lithium carbonate
• Lithium carbonate supply is a key requirement to meet the rapidly expanding international hybrid and electric vehicle market
• Due to the success of the preliminary testwork, Galaxy has commenced the scoping phase of the feasibility work

Emerging lithium producer, Galaxy Resources Limited (ASX: GXY) has further advanced the development of its Mt Cattlin lithium carbonate project located near Ravensthorpe, Western Australia. The preliminary test work results demonstrate excellent potential to produce technical and battery grade lithium carbonate product from the Mt Cattlin spodumene.

Managing Director, Mr Iggy Tan said that the first stage of leach testing and carbonate precipitation had shown that the Mt Cattlin ore is an ideal feedstock for lithium carbonate production.

"After trialling different processing techniques, our preference at this stage is the Soda Ash processing route due to the quality of the product produced and the expected slightly lower operating costs," said Mr Tan.

"With the delivery of these test results the Company has now commenced the full feasibility process with the first stage being a scoping study.

"Since the production of lithium carbonate is a relatively complex process and there are various processing routes and options available, it is important that the Company scopes the project properly before we advance to more detail feasibility work.

Mr Tan said that the scoping study for the lithium carbonate chemical process should be completed by mid quarter two next year and does not impact on the bankable feasibility work that is currently proceeding for the mining and mineral processing of spodumene concentrate. – Press Release