EMP moves toward production with Saskatchewan lithium demo plant build

Saskatchewan lithium brine developer EMP Metals (CSE: EMPS; US-OTC: EMPPF) has finished building the demonstration plant at its main Viewfield project, a key step that positions it among the province’s most technologically advanced lithium players.

The Project Aurora Demonstration facility is now directly connected to the production and waste brine disposal wells, which will enable full commissioning of the plant, a level of integration that few lithium brine projects in Canada have achieved, EMP reported Wednesday. Viewfield is about 140 km southeast of Regina.

“Completing construction of Project Aurora marks a major milestone for EMP as we transition from building the facility to operating it,” EMP CEO Karl Kottmeier said in a release. “Fresh production brine is now flowing through the process as we continue integrating each system, and with commissioning approximately halfway complete, we remain on schedule for Q3 start-up.”

Lithium recovery

EMP’s development momentum comes as lithium prices recover from a two-year slump that gutted investment across the sector. Western governments, shook by China’s control of battery mineral supply chains, have begun propping up domestic supply through grants, stockpiling and price support. 

While Arizona Lithium’s (ASX: AZL) Prairie site in Saskatchewan became the first Canadian brine project to gain approval for production last year, EMP has reached one of the final technical milestones before commercial development. Other key brine players on the Prairies include E3 Lithium (TSXV: ETL; US-OTC: EEMMF) and Volt Lithium (TSXV: VLT) in neighbouring Alberta. 

EMP shares gained 5% to 51¢ apiece on Wednesday morning in Toronto, for a market capitalization of $63.3 million. The stock has traded in a 12-month range of 26¢ to $1.03.

The company’s Viewfield and Mansur sites host 931,038 indicated tonnes of lithium carbonate equivalent (LCE) grading 141 mg per litre lithium and 1.11 million inferred tonnes LCE at 112 mg per litre lithium, according to a resource update from one year ago. Mansur is about 40 km northwest of Viewfield.

$1B value

Viewfield could produce 12,175 tonnes of LCE annually grading 128 mg per litre over a 23-year life, according to a preliminary economic assessment from 2023. Discounted at 8%, Viewfield has a post-tax net present value of about $1 billion (C$1.37 billion), with an internal rate of return of 45%. Capital costs are pegged at $571 million, including a contingency of US$52 million. Capex could be repaid over 2.1 years.

The Aurora demonstration facility is designed to process 10 cubic metres per day of raw brine from the wellhead, with the eventual goal of building a commercial plant capable of producing more than 3,000 tonnes of lithium annually. The plant’s purpose is to validate process performance, optimize operations and provide engineering and economic data to support future commercial-scale development.