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Recently rebranded Plateau Energy Metals turns its focus to lithium as well as uranium

Recently rebranded Plateau Energy Metals turns its focus to lithium as well as uranium

This interview was originally published by Global Business Reports (GBR). It has been reprinted with permission. Photo courtesy of Plateau Energy Metals

Falchani is a tremendous discovery for the future of lithium and uranium production in Peru. 

We spoke to Ted O'Connor, CEO, and Laurence Stefan, President and COO, Plateau Energy Metals. 

2017 was quite an eventful year for Plateau Energy Metals. Could you give us more details on the Falchani lithium-uranium discovery?
TOC: In September 2017, the community of Chaccaconiza invited us to do work in their area. There, we found the best expression of uranium radioactivity at surface that we have seen anywhere in the plateau. We started drilling and we found uranium, but we also found these unusual rocks that we had never seen before, with very high grades of 3,500 ppm lithium. The deposit is at least 100 meters thick and two square kilometers in area. We are currently drilling there and we expect to have our resource by mid-2018. We are quite confident that this will be among the top lithium resources in the world. It is a totally new style of rock: you can process it easily, it is within 200 meters of surface, so it is open-pittable, and it is going to be big. It is a tremendous discovery for our company, but also for the future of lithium and uranium production in Peru.

How does this add to your existing resource in the other areas of the Macusani plateau?
LS: At present we have 124 million pounds of uranium in the ground, and within that, by extracting the lithium too, we have 176,000 mt of equivalent lithium oxide. Now, as we move west towards the Falchani area, the focus is increasingly on the lithium, because the new resource is expected to be one of the largest lithium resources in the world. Having said this, whatever we drill for lithium, we will discover more uranium. The uranium at Falchani is double the grade of our uranium to the east, so we will end up as well with a significantly expanded uranium resource on surface.

Do you expect the lithium to be easily recoverable?
TOC: In most hard rock lithium projects, you essentially have to melt the rocks, cool them quickly and hit them with acid. Our rocks are exactly the same chemistry as a pegmatite, but they are volcanic rocks so they cooled extremely quickly. In this rock that has 3,500 ppm lithium, we get 80% of the lithium out by using warm sulfuric acid. Our solutions have 2,500-2,700 ppm lithium in them, as opposed to 250 ppm in a normal brine. Right now we are running a bulk sample test at ANSTO in Australia, that will give us more details about the process.
LS: At Macusani, the beauty of our rock is that the quenching already took place naturally, probably at the time of the eruption, and now we just need to hit a cake to 80 degrees for 12 hours. Even if that may not be as cheap as extracting lithium from the brines, we will be very close to that, and we will certainly be much cheaper than other hard rock lithium deposits. By the end of the year we will have the results of our preliminary economic assessment.

When do you think the uranium market will improve?
TOC: In a $22/lb spot market, not much production is being sold at that price because no-one can make any money. That is why Cameco and Kazakhstan, two of the world's lowest-cost producers, have shut production. If they are not making money, eventually they are going to turn more uranium mines off. I do not think uranium will go back to prices of $130/lb, but it will certainly be north of $50/lb, because demand is predictable. At least 10 new reactors come online every year, and each of them needs an initial load of 1.5 million lbs, and additional 500,000 lb per year, on average. Our uranium project is too big to be ignored, and it breaks even at $23/lb, with cash costs of $17/lb in our uranium only. We are going to have low-cost uranium production, and we are going to be even better on the lithium side.

What is your relationship with the communities in the Macusani plateau?
LS: We have intense programs with the communities. In the past we have been working with Isivilla, Tantamaco and Corani. Then we worked another two communities when we drilled Pinocho. Moving west now with Falchani, we enter into areas with communities that had been very far away from our core of action, like Chacacconiza and Quelcaya. The weather there is colder so there is no agricultural production. People mostly have livestock and the approach has to be different. At some point we realized that we had to strengthen our community relations team so we hired two quechua-speaking professionals who have been doing an excellent job. Now we have a warm relationship with the communities, that goes beyond the mere discussion about the economic aspects of our relationship.

Ted O'Connor, CEO, and Laurence Stefan, President and COO, Plateau Energy Metals. 

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About the Author

Global Business Reports (GBR)

Global Business Reports (GBR) is an international media agency specialized in the production of business intelligence reports across a variety of industries including mining and metals, energy, chemicals, pharmaceuticals, aerospace and automotive. GBR has been researching the mining industry globally since 2001, and has strategic alliances for the production of official investment guides in events such as Mining Indaba in South Africa, Perumin in Peru, Expomin in Chile and Arminera in Argentina. In 2018, GBR became a partner of Miners & Investors for the provision of content covering the latest developments in the mining industry. For more information, please visit






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