Completion of Flow Testing at Prairie Pad Achieved by Arizona Lithium

2 min read | October 28, 2024 03:42 PM AEDT | By Team Kalkine Media

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Completion of Flow Testing at Prairie Pad Achieved by Arizona Lithium — Image source: Shutterstock

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Highlights

Completion of Flow Testing: Arizona Lithium has successfully completed flow testing at well #3 on Pad #1 of its Prairie lithium project in Canada.

Sustainable Development Approach: The company is focused on environmentally friendly practices, aiming to minimize water usage and waste during production.

Progress on Additional Pads: Drilling has been completed at Pad #2, and preparation for Pad #3 is underway, supporting a methodical development strategy.

Arizona Lithium (ASX:AZL) has finalized flow testing for well #3 at Pad #1 of its Prairie lithium project, situated in Canada’s Williston Basin region. This development is a significant step in the company’s commitment to establishing a sustainable production framework, targeting an output of 6,000 tons per annum of lithium carbonate equivalent. The initiative emphasizes environmental stewardship, aiming to utilize less fresh water and land while generating reduced waste.

The recent testing efforts were concentrated on the newly identified Dawson Bay and Souris River Lithium Formations, with results on grade and flow rates anticipated to be released next month. Arizona Lithium plans to initiate production of its first lithium products as early as next year.

In a strategic move to mitigate risks associated with the current lithium market, the company is adopting a phased approach to development. This involves activating one pad at a time to facilitate early cash flow. The intention is to transform the tested well at Pad #1 into a production well, with each pad estimated to yield a net present value of approximately $150 million.

In addition to the advancements at Pad #1, Arizona Lithium has recently completed drilling operations on Pad #2 and is preparing the site for Pad #3. This sequential approach—clear, drill, complete, and test—ensures a structured pathway towards commercial development.

Management has expressed confidence in the team’s efficiency and focus on securing necessary permits and completing essential operations. The company is well-capitalized, having raised non-dilutive funds through a recent acreage sale. Furthermore, the Prairie project stands to benefit from up to $21.6 million in royalty credits from the Saskatchewan Government, aimed at promoting the commercialization of by-products and waste from oil and gas resources.

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