Iris Metals shares were in full bloom today with the news the early mover in the US hard rock lithium space had successfully converted spodumene concentrate from South Dakota’s Black Hills district into battery-grade lithium carbonate.
The breakthrough comes just days after samples of ore from the Beecher project were successfully processed into a 6.1% spodumene concentrate, with lithium recoveries exceeding 82%.
The SC6 product was then provided to its Indiana-based technology partner, ReElement, for further refining into a 99.5% pure lithium carbonate.
Iris and ReElement have quickly signed a non-binding memorandum of understanding to advance bulk testing with the aim of collaborating on a commercial-scale opportunity within 12 months, potentially delivering a more valuable product.
SC6 prices have fallen from around US$6000/t at the start of 2023 to below $900/t, while lithium carbonate pricing is worth around $15,000/t, down from $46,000/t.
Iris chair Peter Marks said the company was at a “pivotal” moment as it prepared to transition from pure explorer to producer by the end of 2025 at the Beecher project.
ReElement wants to have its first processing train operating at the same time.
ReElement, a subsidiary of NASDAQ-listed American Resources Corporation, developed the process and is claiming it offers a “significant new capability in America’s efforts to secure domestic supply chains of critical minerals”.
Being a domestically developed tech, it should strengthen the case for non-dilutive funding for Beecher through the Inflation Reduction Act, Marks said.
ReElement is also considering an equity investment in Iris.
The pair will also examine the use of the ReElement conversion process to produce lithium hydroxide.
Beecher is Iris’ most advanced asset and has been the focus since the company flipped to lithium 18 months ago.
The Beecher pegmatite trend was mined sporadically between the 1920s and 1950s. A maiden resource is due later this year.
Iris recently kicked off a 1560m maiden diamond drilling program at the Tin Mountain project to test extensions of the known pegmatite over depth and across strike under cover. The historical mine that gives the area its name is known for its spodumene “logs” with average grades of 20-30%, according to United States Geological Survey reports from 1963.
Tin Mountain was acquired in January. A maiden resource is anticipated in 2025.
Site works have begun at the Edison project ahead of drilling next year.
The US has lagged behind Canada in the lithium race. Other Aussies in the hard rock chase include Iris’ South Dakota neighbours Patriot Lithium and Armada Metals. Chariot Corporation this week announced a new strategy to develop an Iris-style small-mine strategy at its Black Mountain project in Wyoming.
ASX-listed Jindalee Lithium owns the largest lithium deposit in the US, with a 3Bt grading 1340 parts per million sediment-hosted resource in Oregon.
Mining identity Norm Seckold is set to list a new US explorer, Fulcrum Lithium, on October 25.
Iris shares were today’s biggest mover, doubling to 37c and increasing its capitalisation to $50 million.
The stock has traded between 15c and $1.88 over the past year.
