West Perth-based diversified resources company Reed Resources has received approval from the Department of Environment and Conservation to start construction of a minerals processing plant at the Mt Marion Lithium project near Kalgoorlie.
In a statement to the Australian Securities Exchange, Reed Resources said that work on the construction of the plant in modular form by joint venture partner Mineral Resources was well advanced.
"Approval has been granted for site clearing and will commence upon approval of the Mining Proposal, expected to be received this month," the statement said.
Reed Resources expected production at Mt Marion to start in the second half of next year at an initial rate of 200,000 tonnes per annum of spodumene concentrate grading nominal 6.5 per cent Li2O, containing 13,000 tonnes lithium oxide.
See company statement below:
Australian diversified resources company Reed Resources Ltd (ASX: RDR) (the "Company" or "Reed") is pleased to advise that it has secured the Works Approval from the Department of Environment and Conservation (DEC) to commence erection of the minerals processing plant at the Mt Marion Lithium Project, near Kalgoorlie, Western Australia.
Construction of the plant in modular form by joint venture partner Mineral Resources Limited (ASX: MIN) ("Mineral Resources") at its workshops in Kwinana, is well advanced. Approval has been granted for site clearing and will commence upon approval of the Mining Proposal, expected to be received this month.
Production is expected to commence in second half of FY2011 at an initial rate of 200,000tpa of spodumene concentrate grading nominal 6.5% Li2O, containing some 13,000 tonnes lithium oxide (Li2O). Total contained lithium oxide resources at present are 146,000 tonnes (Li2O). The Joint Venture was recently expanded to include mica, tantalum and potash feldspars; testwork has highlighted the potential to recover significant volumes of these by-products
