Arizona Lithium (ASX: AZL) announced Monday it has received approval to begin Phase 1 production at its Prairie project in Saskatchewan.
The southeastern part of Saskatchewan, where the project is located, is home to the highest-grade known lithium brines in Canada. The company is also advancing its Big Sandy lithium project in Arizona.
The production approval, granted by the Saskatchewan Ministry of Energy and Resources, makes Prairie the first lithium project in the province to achieve this status.
Located in the Williston Basin region, the Prairie lithium project is in proximity to essential infrastructure, including electricity, natural gas, fresh water, paved highways and railways.
Phase 1 of the project will utilize a direct lithium extraction (DLE) unit capable of producing 150 tonnes per annum (tpa) of lithium carbonate equivalent (LCE).
According to an updated resource model—based on data gathered during the company’s 2024 drilling program—the Prairie project contains 4.6 million tonnes of LCE in indicated resources. Compared to the previous resource, the resource producible has increased by 120%, from 7,700 tpa to 17,000 tpa.
Shares of Arizona Lithium were trading down 22% following the announcement. The miner has a market capitalization of A$31.9 million ($20.6 million).
