Two head-to-head Ontario lithium firms

Two companies are in close competition to be the first to officially break ground on commercially productive lithium mines in Ontario, Canada – one local and the other Australian – and that's only a taste of Ontario's promise in the North American lithium rush.

Green Technology Metals is a lithium exploration company based in Perth with 100%-owned high-grade spodumene assets in Ontario. The company is prepping for its multi-stage C$1.8 billion Seymour project to start output in 2026 as Ontario's first mine for the critical battery metal.

The flagship Seymour project is located near the township of Armstrong in northwestern Ontario with a hard-rock mining project including two mines (Seymour and Root) and spodumene concentrators. Green Tech's project is pushing hard to be construction-ready by 2024, subject to approval and support from Indigenous and community partners.

Even with lithium prices faltering this year, the project that lies a little over 200 kilometers (125 miles) northeast of the port of Thunder Bay is vying with plenty of competition in its race to market.

Crunching the numbers

A preliminary economic assessment (PEA) released on Dec. 6 outlines a viable lithium mining operation in Ontario.

"The PEA validates the company's potential to emerge as a large-scale, cost-effective producer of lithium concentrates and chemicals," Green Tech said in a release accompanying the study. "There is substantial demand for long-term offtake in North America."

"The second part of the PEA includes the conversion of lithium concentrates to lithium chemicals which are currently unavailable in North America," Green Technology Metals CEO Luke Cox said in the release. "It will play a critical role in closing the supply chain from mine to electric vehicle, all Ontario-made."

The PEA envisions developing the Seymour mine before Root, which lies some 160 kilometers (100 miles) northwest. The project remains largely underexplored, with the main focus being on accelerated drilling and development activities on the Aubry deposits in the Southern Seymour area to fast-track the project into production.

Average annual lithium output over the Seymour project's proposed 15-year life is expected to be 207,000 metric tons, with a net profit of C$2.5 billion. The study also considered the option of adding a lithium hydroxide converter with an estimated net profit of C$3.9 billion over the life of the mine.

"Excellent economics are confirmed in the PEA for both project development options with the potential to become the first lithium concentrates and chemical producer in Ontario," the company said. "The definitive feasibility study for Seymour is now underway and we're targeting a financial investment decision ahead of planned construction activities in 2024."

Green Tech expects to deliver the definitive feasibility study by mid-next year and a preliminary feasibility study on a lithium conversion plant before that year is out. A preliminary feasibility study on the Root mine and concentrator is due by mid-2025.

The locals

Frontier Lithium Inc. is a Canadian mining company also developing an integrated lithium mining and processing operation in Ontario. It has received C$2 million in grant funding from the Northern Ontario Heritage Fund Corporation (NOHFC) to test the processing and conversion of by-products as it advances toward commercial lithium salt production.

"Our government is building an integrated supply chain through our Critical Minerals Strategy by investing in critical minerals exploration, innovation and processing," said Ontario Minister of Mines George Pirie. "We want lithium from Northern Ontario to fuel the electric vehicle manufacturing revolution in the South and this investment in Frontier Lithium will support building the processing and refining capacity we need to get it done. This is another example of Ontario mining companies leading the charge for critical minerals innovation and creating good jobs in communities across the province."

Frontier has been actively engaged in the exploration and development of their PAK lithium project, located in the Red Lake mining jurisdiction of northwestern Ontario. The 100%-owned lithium project encompasses close to 27,000 hectares. It's one of two spodumene-bearing lithium deposits located 2.3 kilometers (1.4 miles) apart, with the project several months ahead of Seymour in advancing a feasibility study.

Frontier Lithium maintains the largest land position and resource in a new premium lithium mineral district located in Ontario's Great Lakes region.

The company's objective is to become a strategic domestic supplier, aiming to produce battery-grade lithium hydroxide and lithium salts for the growing electric vehicle and energy storage markets in North America, as well as premium mineral concentrates for high-quality glass manufacturers.

In addition to Green Tech and Frontier, several companies are advancing lithium projects in Ontario:

• Lithium One has been on an acquisition spree, with six properties near the Root Project and Nipigon.

• Vancouver's Imagine Lithium has received encouraging lab results from metallurgical testing of a sample from its Jackpot lithium project near Nipigon.

• Thunder Bay is waiting for Avalon Advanced Materials to announce the site for a lithium refinery in the city to process material from its Separation Rapids project, 70 kilometers (43 miles) north of Kenora.

• Near Geraldton, Toronto's High Tide Resources is making an option agreement to pick up a lithium property. High Tide's focus has been on iron ore, but the company is diversifying into copper, nickel, cobalt, and lithium in Quebec, with this being the company's second lithium acquisition in less than a year.

• Rock Tech Lithium's Georgia Lake project is scheduled to go into mine production by the middle of 2024.