Battery Metals
June 22, 2023

Understanding the Significance of Lithium Exploration and Development Based Around North America’s Leading Lithium Player

Arizona Lithium recognizes the enormous potential of the current market conditions. The company's strategy revolves around capitalizing on the significant demand for lithium by expediting its production process.

Arizona Lithium (OTCQB: AZLAF) (ASX: AZL) is a North American mining company, that has made significant strides in the lithium industry. The company recently closed a share purchase plan (SPP) of $2.63mm AUD and a market cap of $115mm AUD, the company is financially strong and ready to carry on its exploration.

Arizona Lithium Big Sandy and Prairie Lithium Projects emerges as an outstanding investment opportunity. With a well-defined strategy focusing on fast-track production, efficient permitting, and robust economics, Arizona Lithium is poised to capitalize on the surging demand for lithium. The company's strategy, including the acquisition of premier assets and the utilization of their advanced Lithium Research Center, further enhance its competitive edge.

What are the Key strengths of Arizona Lithium (OTCQB: AZLAF) (ASX: AZL)?

Arizona Lithium recognizes the enormous potential of the current market conditions. The company's strategy revolves around capitalizing on the significant demand for lithium by expediting its production process. This approach enables Arizona Lithium to leverage the substantial supply-demand imbalance and secure a favorable market position to maximize profitability. As a part of their expediting lithium extraction plan, Arizona Lithium has acquired Prairie Lithium.

Prairie Lithium Project - Highest quality lithium resource discovered in Canada to date.

AZL completed the acquisition of Prairie Lithium Corporation (Prairie), representing a 1,200% increase to AZL’s global lithium Resource, now 4.4MT of LCE (inferred and indicated):

  • The Prairie Lithium Project in Saskatchewan, Canada benefits from a mining-friendly jurisdiction, efficient permitting processes, and holds the largest high-grade North American resource, with a substantial inferred resource of 4.1 million MT of LCE at an average lithium grade of 111 mg/L

  • The project utilizes Direct Lithium Extraction (DLE) technology and a proven modular process, ensuring shorter time to production, minimized capital expenditure, and serving as a proof of concept for the DLE technology, while maintaining operational efficiency and cost-effectiveness.

  • With an experienced technical team, competitive North American grade (137-172 mg/L), and the highest-quality lithium resource discovered in Canada to date, the Prairie Lithium Project offers exceptional potential to meet the increasing demand for high-quality lithium products and establish a prominent position in the market. With the potential for global application, Prairie's lithium extraction process is undergoing testing on lithium resources from various jurisdictions, including the renowned Big Sandy Resource. This grant funding reinforces Prairie Lithium's position as a key player in the lithium industry and highlights the company's commitment to technological innovation and driving future growth.

Prairie Lithium – Highlights from successful test well results:

  • The test well at Arizona Lithium's Prairie Project showed that it can produce a lot of lithium and has high concentrations of it.

  • The amount of lithium produced each day was more than expected, which means they might need fewer wells to produce lithium. The test also confirmed the presence of mineral-rich brine across a large area.

  • These positive results will be used to update the estimated amount of lithium and prepare a preliminary economic assessment.

Lithium Research centre:

The establishment of a world-class Lithium Research Center (LRC) by Arizona Lithium (AZL) is a key differentiator for the company, setting it apart in the lithium industry. The LRC, located on a spacious 9,700m2 property near Phoenix airport, comprises a dedicated building for research and development (1,900m2) and a secure lot for processing equipment fabrication and storage (3,000m2). This state-of-the-art facility serves as a technology incubator, focusing on the extraction of lithium from the Big Sandy ore body and other valuable sources, while also producing battery-grade lithium chemicals to meet the demands of current and future battery technologies.

The significance of the LRC lies in its ability to showcase all processing steps necessary for a lithium project, particularly highlighting the potential of the Big Sandy project. Led by CTO Brett Rabe, the LRC aims to demonstrate the full range of capabilities in lithium extraction and processing. This initiative has already attracted interest from multiple Electric Vehicle OEMs, strategic investors, and government officials, who have expressed their keenness to tour the facility. The completion of construction in Q2 2023 solidifies the LRC's role as a key differentiator for Arizona Lithium, positioning the company as a leader in lithium innovation and development, while fostering valuable partnerships and attracting potential investors.

Arizona Lithium's establishment of a world-class Lithium Research Centre (LRC) in Tempe, Arizona, serves as a testament to their commitment to technological innovation and industry leadership. This strategic move aligns perfectly with the company's vision of creating a technology incubator focused on lithium extraction and the production of battery-grade lithium chemicals. With the LRC's laboratory operations already fully functional and the construction of the pilot plant underway, Arizona Lithium is poised to commence operations and utilize the facility to treat bulk samples extracted from the Big Sandy Lithium project. This investment in research and development showcases the company's dedication to advancing lithium technologies and positions them favorably for future advancements in battery technologies.

Big Sandy Project:

Arizona Lithium's strategic focus on the Big Sandy lithium project showcases the company's dedication to prioritizing ventures with substantial economic potential. By concentrating efforts on this large-scale project, Arizona Lithium aims to generate significant returns on investment. Simultaneously, the company is making progress on the Prairie project, ensuring a diversified portfolio and sustained growth.

The Big Sandy Lithium Project in Arizona emerges as a highly promising venture due to its unique characteristics and immense potential. The project stands out with its very shallow and

flat lying mineralized sedimentary lithium resource, which allows for cost-effective extraction methods and a minimal environmental footprint.

Arizona Lithium's successful drill program in 2019 resulted in the estimation of a significant Indicated and Inferred JORC Mineral Resource, totaling 32.5 million tonnes with a grade of 1,850 ppm Li. This resource represents only 4% of the Big Sandy Project area, which further highlights the substantial exploration target potential. The estimated exploration target ranges from 271.1 million to 483.15 million tonnes at 1,000 - >2,000 ppm Li, showcasing the significant scale of untapped lithium resources within the project.

The project's exceptional resource size and grade, combined with its favorable geographic location and available infrastructure, position the Big Sandy Lithium Project as an exceptional investment opportunity. The potential for cost-effective extraction methods, minimal environmental impact, and the significant exploration target make this project a highly attractive proposition for investors seeking exposure to the growing lithium market.

Disclaimer: Please be aware that this is not financial advice and that you should conduct due diligence before investing. The article was issued on behalf of Arizona Lithium (“Arizona”) by Machai Capital (thegoldstocks.com).