Emerging global lithium player Platypus Minerals is well on its way to proving it’s not just another lithium junior.

The company is exploring for traditional and unconventional sources of lithium, in keeping with its reasoning for the acquisition in May of public unlisted company Lepidico and its provisionally patented lithium extraction technology L-Max.

As Platypus managing director Tom Dukovcic explains, the low cost L-Max process has the potential to disrupt the industry by introducing a viable third source of lithium to the market: Li-micas, rather than hard-rock spodumene or brines.

Like spodumene, Li-micas such as lepidolite and zinnwaldite occur in pegmatites, sometimes in association with spodumene, but are essentially discarded as waste in the process of generating a spodumene concentrate.  Elsewhere, these minerals have been ignored because they are not mainstream.

“With L-Max we have the ability to turn people’s waste into ore, that’s the magic of it,” Dukovcic said.

“It’s a beautiful, elegant process with multiple benefits – it extracts lithium while producing a range of value-add by-products, such as potash and other compounds, to effectively produce a clean, environmentally friendly waste.”

He said L-Max had produced battery-grade lithium carbonate with a purity of 99.5% in the lab and was successfully tested in a mini-plant run. The next step is to prove the low-cost L-Max process in a Phase 1 plant, a significant step that would put Platypus in the lithium producer ranks.

Although it is yet to be tested on a commercial scale, licences have already been sold to third parties, and European Metals Holdings has taken an option to use L-Max at its massive Cinovec project, Europe’s largest lithium deposit located in the Czech Republic.

Dukovcic said L-Max could be the catalyst for a major change in the global lithium industry, potentially adding value to existing operations and facilitating the development of greenfield opportunities.

Meanwhile, after a successful fully underwritten AUD$3.7 million rights issue, Platypus is set to commence drilling at its Lemare project in the James Bay region of Quebec, Canada.

This is part of Platypus’s three-pronged approach to exploring for lithium: traditional sources (spodumene), non-traditional sources (Li-micas) and through joint ventures with companies with established experience in overseas jurisdictions (eg, Crusader Resources in Brazil, and Latin Resources in Argentina and Peru).

Lemare covers about 70sqkm in a proven lithium district about 25km from Nemaska Lithium’s developing Whabouchi project.

Platypus exercised Lepidico’s option in May to acquire up to 75% of Lemare from Critical Elements Corporation, who is developing the Rose lithium project in the same region, for $70,000 cash, $500,000 in scrip and future milestone payments.

“We’re keen get on the ground and drill Lemare,” Dukovcic, a geologist, said.

“Lemare is the first lithium prospect that we’re going to drill. We want to move quickly to define the size and scope of Lemare with the hope of establishing a JORC code-compliant resource by the end of the year.

“Lemare is a walk-up drill target and we intend to start field work in July.  We know other spodumene pegmatites in the region host lepidolite as well, including Rose, and we’re yet to determine the mineralogy of Lemare.”

The company’s first non-traditional lithium target is at the historical tin field at Euriowie in New South Wales, north of the mining centre of Broken Hill.

Dukovcic said there was known lithium mineralisation within the project in the form of amblygonite in pegmatites.

“Amblygonite is nice because it’s the highest grade lithium mineral with 10% lithium oxide,” he said. 

“The challenge at Euriowie is to define large enough quantities of amblygonite, which is not known to occur in abundance – but is that a reality or is that because it has yet to be specifically explored for?”

Accordingly, Lepidico has also submitted an application for a provisional patent for a lithium extraction process for amblygonite.

Through Lepidico, Platypus has established joint ventures with two ASX-listed companies to explore for lithium in Brazil, Argentina and Peru.

Dukovcic said the 50:50 joint venture with Crusader Resources was an ideal business model to demonstrate how L-Max could potentially unlock value in projects where lithium-bearing micas had been overlooked as a primary source of lithium.

“We provide L-Max and they bring local knowledge to the table so we don’t have to waste time and resources in reinventing the wheel,” he said.

The partners will initially explore the Manga project in Brazil for zinnwaldite, a lithium-rich mica.

In a similar vein, Lepidico has also set up two joint ventures with Latin Resources to explore for lithium in Argentina and Peru.

“We want to increase our exposure to opportunities through joint ventures with companies that have local knowledge and we’re looking to continue to expand that business model elsewhere,” Dukovcic said.

Lithium demand is forecast to rise from the growth in lithium-ion batteries not just for electric vehicles and portable devices but also rechargeable household storage batteries for solar power.

“It’s not going to be a short-term boom,” Dukovcic said.

He added that brine projects had high capital costs and long lead times, and spodumene deposits were restricted by high operating costs.

Unlocking the third major supply of lithium to the market, by processing lithium-rich micas via a low-cost process, would help meet the expected continued growing demand.

“We’re not just another run of the mill lithium junior,” he said.

“We’re building a complete lithium business, from exploration for traditional sources of lithium, ie, spodumene, to brownfields exploration to build an inventory of lithium mica ‘waste’, and our point of difference, the application of L-Max® to either third party or our own Li-mica resources.

“We’re keeping all our lithium irons in the fire.”

Dukovcic has been with Platypus since 1999 and has overseen its evolution through a number of guises in that time to now be at the cutting edge of the rise and rise of lithium.

He said it was pleasing to now be in such a strong position, having weathered the market downturn and seizing the right opportunity to secure the company’s longer term future.

“The acquisition of Lepidico was a great opportunity for both boards, and the timing was right,” Dukovcic said.

“When we first started talking in September there were maybe a dozen lithium juniors on the ASX whereas now there are over 50.  If they each raise $2M - $3M that’s around $100M spent on lithium exploration over the next 12 – 18 months.

“I think some of these might fade away when they use up the funds raised in the current fervour but that could give those left standing the pick of any resulting lithium discoveries.”

The Platypus board is comprised of Gary Johnson, Lepidico’s founder, as chairman, Dukovcic and Rocco Tassone.

“Gary Johnson has a distinguished career as an inventive metallurgist,” Dukovcic said.

“He was behind the development of the Activox process for treating sulphide ores while he was with LionOre, which was apparently a large reason for the takeover by Norilsk Nickel.

“Rocco Tassone brings experience in equities markets, making for a diverse and balanced board.”

Experienced metallurgist and former Lepidico board member Gavin Becker is a business development consultant to Platypus.

Dukovcic said the board and management would be augmented in future in line with the company’s expected growth.

“We have money in the bank and opportunities galore,” he said.

“We’re spreading the risk, and over the next six months we expect to drill Lemare and Euriowie and aim to demonstrate the viability of L-Max® operating at a semi-commercial scale.

“It’s a very exciting period.”