How Arizona Lithium’s Prairie Project Became Saskatchewan’s First Lithium Brine Producer
Arizona Lithium has achieved a landmark regulatory approval for Phase 1 production at its Prairie Lithium Project, marking the first lithium brine operation sanctioned in Saskatchewan. Updated drilling and modeling have significantly expanded the project's resource base and production potential.
- Phase 1 production approval granted by Saskatchewan Ministry of Energy and Resources
- First lithium brine project in Saskatchewan approved for commercial-scale production
- Updated Indicated Resource increased to 4.6 million tonnes lithium carbonate equivalent (LCE)
- Annual producible resource capacity raised by 120% to 17,000 tonnes LCE
- Prefeasibility Study confirms low operating costs and strong economic viability
Regulatory Milestone in Saskatchewan
Arizona Lithium Limited has secured approval from the Ministry of Energy and Resources in Saskatchewan to commence Phase 1 production at its Prairie Lithium Project. This approval is a significant milestone, positioning Prairie as the first lithium brine project in the province, and among the earliest in North America, to receive such regulatory clearance. The project’s initial production will deploy a commercial-scale Direct Lithium Extraction (DLE) unit at Pad #1, capable of producing 150 tonnes per annum (TPA) of lithium carbonate equivalent (LCE).
Resource Upgrade and Production Potential
Recent drilling and completion programs conducted in 2024 have yielded updated resource data, increasing the total Indicated Resource from 4.5 million tonnes to 4.6 million tonnes LCE. More notably, the annual producible resource estimate has surged by 120%, from 7,700 TPA to 17,000 TPA LCE. This leap reflects enhanced well network modeling and improved understanding of the lithium-bearing brine aquifers within the Duperow Formation.
Economic Viability and Operational Outlook
The project’s Prefeasibility Study (PFS) underscores its economic promise, with operating costs estimated at approximately US$2,819 per tonne of lithium carbonate product. The study incorporates capital and operating cost estimates, metallurgical test work, and market pricing assumptions, resulting in a post-tax net present value (NPV) of US$312 million at an 8% discount rate. Arizona Lithium plans to scale production rapidly by replicating the DLE process across multiple pads, leveraging the commercial-scale proof of concept established at Pad #1.
Technology and Environmental Considerations
The project employs Direct Lithium Extraction technology, a method proven in South America and China but yet to be commercialized in North America. This process selectively extracts lithium from brine, producing a lithium chloride solution that is further purified to near battery-grade lithium carbonate. While the initial product requires downstream refining by offtakers, the approach aligns with Arizona Lithium’s sustainability goals, aiming to minimize freshwater use, land disturbance, and waste generation. The company reports no known environmental or legal impediments and intends to situate infrastructure within cultivated lands to mitigate ecological impact.
Strategic Location and Infrastructure
Situated in the Williston Basin near the Canada-US border, the Prairie Lithium Project benefits from excellent infrastructure, including access to electricity, natural gas, paved highways, railroads, and skilled labor markets. The regulatory environment in Saskatchewan is highlighted as clear and supportive, providing a replicable framework for lithium brine project development. Local government officials have expressed strong support, citing the project’s role in meeting growing global lithium demand and fostering regional economic growth.
Bottom Line?
With regulatory approval and a robust resource upgrade in hand, Arizona Lithium is poised to advance Prairie Lithium as a key North American lithium brine producer, though commercial-scale DLE deployment and market dynamics remain critical next steps.
Questions in the middle?
- How will Arizona Lithium manage the operational risks of deploying DLE technology at commercial scale in North America?
- What are the timelines and capital requirements for scaling production beyond Phase 1’s 150 TPA?
- How will lithium market price volatility and downstream refining arrangements impact project economics?
