MINAS GERAIS, Brazil and VANCOUVER, Canada, May 24, 2018 /CNW/ - Margaux Red Capital Inc. (TSXV-SGMA) and its wholly-owned subsidiary Sigma Lithium Resources Inc. ("Sigma") announce an important step towards completing the feasibility study of Sigma's foothold deposit at its Grota do Cirilo Property in Minas Gerais state, Brazil. Sigma has finalized the environmental licensing process for its Dense Media Separation (DMS) pilot plant and expects to complete its construction in June 2018.
The pilot plant flowsheet was designed after Sigma conducted successful metallurgical tests for over eight months, producing high-quality battery-grade lithium spodumene concentrate above 6% Li2O at SGS laboratories in Canada and Brazil.
The pilot plant will have a capacity to produce up to 12,000 tonnes of lithium spodumene concentrate per year at the rate of 10 tonnes per hour. The pilot plant will consist of a two-stage crushing circuit with a capacity of 30 tonnes per hour, a magnetic separation unit and a DMS unit, which will produce a coarse concentrate of +4mm to -15mm size fraction. Sigma is currently conducting tests of ore sorter technology, which will be later added to the pilot plant.
Sigma's premium lithium spodumene concentrate samples produced by the plant will be sent to prospective clients for validation and certification purposes. "The pilot plant is an important milestone on the path to becoming a fully operational world-class lithium producer by 2020. The metallurgic tests to date have produced a coarse lithium spodumene concentrate above 6% Li2O, using simple DMS processing technology, validating the superior quality of our lithium," says CEO Calvyn Gardner.
"With the advent of electric cars, most of the growth in lithium demand is coming from the chemical producers of lithium hydroxide supplying the battery cathode industry. Sigma is uniquely positioned to cater to this growing demand, due to our ability to produce in-spec 6% lithium concentrate from our high-grade high-purity spodumene ore. Lithium is not rare, but Sigma's differentiation comes from the high quality and purity of our foothold deposit at 1.56% average grade of lithium for our estimated Measured and Indicated Resources," he adds.
Brazil-based Sigma President Itamar Resende says: "The superior metallurgy of our spodumene concentrate was demonstrated by the excellent 73% recoveries obtained, using just the one-stage DMS, for ore sizes crushed at both 6.5 and 9.5mm. As a result, Sigma can build a low-capex DMS commercial processing plant with superior productivity and recoveries. Flotation tests of the middlings from the DMS also produced a fine concentrate with Li2O above 6% with exceptional recoveries of 86%."
Sigma's larger-size spodumene concentrate, especially at 9.5mm particles, is seen to be a premium product because it increases the recovery rates achieved by chemical producers of lithium hydroxide in their calcination process within their kilns.
Itamar adds: "The superior quality of our spodumene lithium concentrate provides Sigma with a competitive advantage when marketing to customers in the chemical industry as they experience excellent recovery rates and higher productivity. As producers of battery grade lithium hydroxide can take up to 12 months to validate a new supplier, our goal is to be qualified well before we start production, which we are targeting to be by the end of 2019."
Sigma plans to implement advanced green and sustainable mining processes at its Minas Gerais operation. The electricity on site is generated by a clean hydroelectric power plant and Sigma will recycle 100% of the water utilized in the plant, while the waste system will stack the mining tailings in dry piles, hence avoiding tailings dams.
Sigma is a mineral development company that is advancing into pilot production stage an environmentally focused lithium project in Minas Gerais, Brazil to produce battery grade spodumene concentrate from its high-quality deposits. Sigma corporate purpose is to execute its strategy while embracing environmental, social, and governance ("ESG") principles.
Sigma has 28 mineral rights in four properties spread over 188 km2 and 18,887 hectares -with over 200 lithium bearing pegmatites and 11 former historical lithium mines. The Grota do Cirilo property, Sigma's primary focus, includes 10 mining concessions (mining production authorizations) and is currently undergoing a 20,000m drilling campaign for resource expansion.
Sigma has a National Instrument 43-101 ("NI 43-101") technical report on the Grota do Cicilo property prepared by SGS Canada-Geostat ("SGS"), which includes estimated measured and indicated resources of approximately 12,900,000 tonnes for its main deposit (8,502,000t measured and 4,385,000t indicated), with a high average grade of 1.56% (for approximately 5,000,000t of LCE). The technical report also includes estimated inferred resources of 608,348t and further notes the potential for significant resource expansion.
The resources estimates in this news release are included in (and the estimated LCE is derived from the resource estimates included in) the technical report titled "Technical Report Northern and Southern Complexes Project, Araçuai and Itinga, Brazil, Sigma Lithium Resources Inc." which has an effective date of January 29, 2018 and was prepared by Marc-Antoine Laporte, P.Geo, M.Sc. of SGS. Mr. Laporte is a qualified person as defined by NI 43-101 and is independent of Sigma. The report is available at www.Sedar.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements relating to completion of pilot plant construction, plant capacity, continuing superior product quality, metal recovery, and other statements that are not historical facts. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These assumptions, risks and uncertainties include, among other things: the state of the economy in general and capital markets in particular and investor interest in the business and future prospects of Margaux Red Capital Inc. ("Margaux") and Sigma.
The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, Margaux disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law. Additionally, Margaux undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters discussed above.
Neither the TSX Venture Exchange (the "TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
SOURCE Sigma Lithium Resources Inc.
For further information: Sigma Lithium Resources Inc., Www.sigmalithiumresources.com, Ana Cabral, Director of Business Development and Investor Relations, 55 11 2985-0089, [email protected] or Gabriela Forlin, PRC Consulting Brasil, 55 11 3078-4461, [email protected]