North of 60 Mining News - The mining newspaper for Alaska and Canada's North

North Arrow Minerals Inc. has discovered a large, lithium-rich pegmatite in the Aylmer Lake area of the Northwest Territories, about 70 kilometers, or about 43 miles, east of existing winter road infrastructure that services the Ekati and Diavik diamond mines.

The Vancouver, B.C-based junior is focused on exploration of a diverse group of gold-silver-base metal-and-diamond-prospective properties in the Northwest Territories and Nunavut Territory.

North Arrow Sept. 18 said the northwest trending "Big Bird" pegmatite dike is intermittently exposed over a strike length of at least 1,200 meters with observable widths of up to 40 meters. Five of seven grab samples from the dike have returned assays greater than 1.5 percent lithium with a highest value of 3.3 percent lithium. Mineralization is contained in the lithium-bearing mineral spodumene.

Results from a program of geological mapping and channel sampling in September were even more encouraging, the junior said Oct. 20.

Channel samples were collected at 10 locations along a 1,100-meter strike length with individual channels separated by distances ranging from 80 meters to 200 meters. Eight of the 10 channel samples returned assays greater than 1.18 percent Li2O with a highest value of 3.1 percent Li2O.

North Arrow said the channel sampling results confirm the continuity and grade potential of the Big Bird pegmatite, noting that typical grade estimates for lithium deposits tend to range from 0.50 percent to 1.50 percent Li2O.

Lithium-bearing pegmatites can be zoned and can contain additional associated rare metals, including tantalum and tin near their margins, the junior added.

Exploration of the Big Bird pegmatite, so far, has been restricted to outcrop exposures in the interpreted centre of the dike. Marginal portions of the pegmatite and its contacts with adjacent country rocks are covered by overburden and water. As a result, future exploration on the property will include total field magnetic surveys, North Arrow said.

Metal of the future

Lithium is a soft alkali metal with a silver-white color. Under standard conditions, it is the lightest metal and the least dense solid element. Like all alkali metals, lithium is highly reactive, corroding quickly in moist air to form a black tarnish. For this reason, lithium metal is typically stored under the cover of oil. When cut open, lithium is shiny, but contact with oxygen quickly returns it back to the dull silvery grey color. Lithium is also highly flammable.

The 33rd most abundant element on Earth, lithium only appears naturally in the form of compounds due to its high reactivity. The element occurs in nature with a number of other minerals, but is also commonly obtained from brines and clays; on a commercial scale, lithium metal is isolated electrolytically from a mixture of lithium chloride and potassium chloride.

Though lithium markets vary by location, global end-use markets are estimated as follows: batteries, 20 percent; ceramics and glass, 20 percent; lubricating greases, 16 percent; pharmaceuticals and polymers, 9 percent; air conditioning, 8 percent; primary aluminum production, 6 percent; and other uses, 21 percent. Lithium use in batteries has expanded significantly in recent years because rechargeable lithium batteries are being used increasingly in portable electronic devices and electrical tools.

Demand to rise for lithium batteries

According to the U.S. Geological Survey, the market for lithium compounds with the largest potential for growth is batteries, especially rechargeable batteries.

Demand for rechargeable lithium batteries continued to grow for use in video cameras, portable computers and telephones, and cordless tools.

At least two major automobile companies have been pursuing development of lithium batteries for hybrid electric vehicles, vehicles with both an internal combustion engine and a battery-powered electric motor.

Most commercially available hybrid vehicles use other types of batteries, although future generations of these vehicles may use lithium.

Non-rechargeable lithium batteries are being used in calculators, cameras, computers, electronic games, watches, and other devices.

The United States remains the leading consumer of lithium minerals and compounds and the leading producer of value-added lithium materials.

Demand will outpace production

Chile is currently the leading lithium metal producer in the world, with Argentina next. Both countries recover the lithium from brine pools. In the United States lithium is similarly recovered from brine pools in Nevada.

China may emerge as a significant producer of brine-based lithium carbonate around 2010. Potential capacity of up to 55,000 metric tons per year could come on-stream if projects in Qinghai province and Tibet proceed.

The total amount of lithium recoverable from global reserves has been estimated at 35 million metric tons, which includes 15 million metric tons of the known global lithium reserve base.

In 1976 a National Research Council Panel estimated lithium resources at 10.6 million metric tons for the Western World. With the inclusion of Russian and Chinese resources as well as new discoveries in Australia, Serbia, Argentina and the United States, the total has nearly tripled by 2008.

However, current mining methods won't provide enough for the future need for lithium-ion batteries, according to Meridian International Research.

Discovery considered strategic

The discovery of the Big Bird pegmatite represents a strategic acquisition for North Arrow, considering that demand for lithium is expected to grow in the coming years with lithium battery technology being applied to the production of electric-powered automobiles.

Much of the increased demand for lithium is expected to be driven by the automotive industry. Both General Motors Ltd. and Chrysler Corp. have recently announced plans to produce lithium battery-powered electric cars as early as 2010, North Arrow said.