A heavy media separation pilot plant returned better recoveries and grades than the definitive feasibility study.

The samples were taken from three ore sources that will feed the plant for the first 5-7 years.

The results showed a big increase in recovery in the Eastern Domain from 44.6% to 67.7%, an increase of 23.1% producing a 6.26% lithium oxide grade.

Results from the Central and Western Domains showed an increase in recoveries from the low 40s to 51.9% and 56% respectively.

Gravity and flotation testwork is ongoing.

Pilbara is preparing a reserve upgrade and will factor the new data into updated stage one financial modelling.

The data will also form the basis of the definitive feasibility study for the $128 million stage two expansion of Pilgangoora to 4 million tonnes per annum, with results due in the second half of the year.

Early site works continue at Pilgangoora, with major works not expected to begin until April.

Pilbara is planning to finalise financing for the project by the end of this month, and said it was in “advanced” discussions with multiple industry participants for offtake and funding.

“Our opportunity is in the alignment of offtake and how it relates to the financing of the project,” Pilbara managing director Ken Brinsden told MNN recently.

The company is also in ongoing talks with offtake partner Shandong Ruifu for the start of direct shipping ore exports.

Bulk samples have been sent to Ruifu in China, and Pilbara has applied to use the Utah Point facility at Port Hedland to export.

Ruifu has also started regulatory applications in China to progress the $US10 million prepayment facility as part of the offtake deal.

Starting as early as July 2017, Pilbara will supply Ruifu with 1.9 million tonnes (100,000 tonnes per month) of crushed, but unprocessed, run-of-mine product grading 1.5% lithium oxide with a 5% moisture level at an “attractive” fixed price per tonne in US dollars.

Shares in Pilbara were up by A0.7c to 45.7c.