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Arizona Lithium announced that it has received the green light for Phase 1 of its groundbreaking Prairie lithium project in Saskatchewan, Canada. This significant milestone marks the project as the first lithium brine venture in Saskatchewan and one of the earliest in North America to secure initial production approval.

The approved Phase 1 will focus on production at Pad #1, utilizing a commercial-scale direct lithium extraction (DLE) unit with the capacity to produce 150 tonnes per year of lithium carbonate equivalent (LCE). Arizona Lithium emphasized that this unit represents a fully commercial-scale DLE system, providing a blueprint for replicating and scaling up production in subsequent phases of the project.

Alongside this pivotal production approval, the company also unveiled an updated well network model. This revised model, built upon the data gathered from its 2024 drilling and completion program, has significantly boosted the estimated indicated resource that can be produced. The updated figures show a remarkable 120% increase, jumping to 17,000 tonnes per year of LCE from the previous estimate of 7,700 tonnes per year used in the project's prefeasibility study.

Paul Lloyd, Managing Director of Arizona Lithium, hailed these approvals as a "massive milestone" in the project's development. He further highlighted the favorable regulatory environment in Saskatchewan, stating that it provides project developers with a "clear permitting path and the ability to establish operations."

The Saskatchewan Minister for Energy and Resources, Colleen Young, warmly welcomed the approval. She acknowledged the Prairie project's leading role in lithium exploration and development within the province.

"Over the past five years, there has been significant investment in lithium exploration and mineral acquisitions in Saskatchewan," Minister Young stated. "As a result, we have learned that south-east Saskatchewan hosts the highest-grade lithium brines in Canada. The Prairie lithium project has led the charge in resource and process developments, and we are pleased to see it reach this milestone."

This development underscores Saskatchewan's growing prominence in the burgeoning North American Lithium Market, driven by the increasing demand for battery materials to support the Electric Vehicle revolution and energy storage solutions. The success of Arizona Lithium's Prairie project could pave the way for further Lithium Brine Projects in the region, potentially positioning Saskatchewan as a key player in the critical minerals supply chain. The use of direct lithium extraction technology in a commercial-scale setting is also a significant step forward, as DLE methods are often considered more environmentally friendly and efficient compared to traditional evaporation pond methods. Investors and industry analysts will be closely watching the progress of Phase 1 as Arizona Lithium moves towards commercial production.