Could the Dawson Bay Formation Unlock Arizona Lithium’s Full Potential?

$AZL Could the Dawson Bay Formation Unlock Arizona Lithium’s Full Potential?

Arizona Lithium has uncovered a significant lithium-rich brine formation within the Dawson Bay Formation at Pad #1 of its Prairie Lithium Project. This formation, located directly below the Souris River Formation, had not been previously tested for lithium, making this discovery particularly noteworthy. The samples extracted revealed a lithium concentration of 60 mg/L, further boosting the project’s resource potential.

The Prairie Lithium Project, situated in the resource-rich Williston Basin of Saskatchewan, Canada, holds a substantial 6.3 million tonnes of lithium carbonate equivalent (LCE). With the new discovery, Arizona Lithium strengthens its position in the global lithium supply chain as demand for the mineral continues to surge due to the electric vehicle (EV) revolution.

Production and Disposal Wells Surpass Expectations

The exploration process didn’t stop at discovery. After confirming the lithium content in the Dawson Bay Formation, the well was converted into a disposal well. Arizona Lithium tested four separate zones within Mississippian stratigraphy, ... using brine from the production well for disposal. The results were outstanding, with disposal rates ranging from 500 to 700 m³ per day per zone, well above previously modeled rates.

Notably, the wellhead pressures recorded during these high-volume tests were significantly lower than expected, demonstrating the robust capacity of the wells. This success enables Arizona Lithium to move forward with its facility design and construction, expected to begin in the first half of 2025.

A Milestone Towards Production

According to Arizona Lithium's Managing Director, Paul Lloyd, the completion and testing of the production and disposal wells is a pivotal step toward full production at the Prairie project. These achievements, alongside the optimized surface processing pilot plant, allow the company to finalize the design of its lithium extraction facility. Commercial-scale lithium production is expected to commence in the second half of 2025.

"This is a significant milestone in putting our project into production," Lloyd stated. "With production and disposal wells successfully tested, we are now set to move forward with facility construction, aiming for lithium production by 2025."

Forward-Looking Exploration

Building on the success of Pad #1, Arizona Lithium plans further exploration into the Dawson Bay and Souris River formations at additional pad locations. These explorations will expand the company’s knowledge of the region’s lithium potential and could unlock even greater resources.

Sustainable Lithium Production

Arizona Lithium has made sustainability a core focus of its operations. The Prairie Lithium Project aims to minimize freshwater usage, reduce land disruption, and lower waste generation, aligning with the company’s commitment to environmentally responsible lithium production. The project is strategically located in a jurisdiction known for its mining-friendly policies and access to key infrastructure, including electricity, natural gas, highways, and railroads.

With the production and disposal wells now tested and facility design underway, Arizona Lithium is poised for a pivotal 2025. As global lithium demand continues to rise, the company's strategic developments at the Prairie Lithium Project will place it at the forefront of North America's lithium supply chain.

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