Sterling Group Ventures Inc.: Interest To Purchase All Initial Lithium Concentrate From Jiajika JV
Tuesday August 31, 8:01 am ET
VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 31, 2004--Sterling Group is pleased to report
that it, through its subsidiary Micro Express Ltd., and its partner have received expression of interest from three
lithium users to purchase lithium concentrates in excess of what the joint venture plans to initially produce. Two
lithium chemical producers indicated quantities of 35,000 tonnes per year or 74% of the total lithium concentrate
to be produced while the third company, Xinjiang lithium plant, which imports most of its lithium requirement from
Australia, is interested in taking all lithium concentrates (about 47,000 tonnes) to be produced at market price.
More details about offtake of the lithium concentrates are under discussion. Initial capacity is planned for
240,000 tonnes per year rising quickly to 900,000 tonnes. The lithium concentrate expected to be produced is
47,320 tonnes per year for 240,000 tonnes/annum capacity.
In June, the Bureau of Land and Resources of Sichuan Province, China issued the necessary mining permit to
Sterling's Chinese partner - Sichuan Province Mining Ltd., a company 40% controlled by the Sichuan Provincial
Government, to develop and put the Jiajika lithium deposit into production. The mining permit number is
5100000410234. The Bureau also approved the joint venture proposal (official document No. 469) submitted
by Sichuan Province Mining Ltd. According to approval document, Sichuan Province Mining Ltd. will use its
mining permit and part of cash as its contributions in the proposed joint venture company with a subsidiary of
Sterling. Sterling will bring the project into production. A joint venture, called Jihai Lithium Ltd., is in the process
of being set up in which Sterling will own a 75% interest and apply for a business license.
The Jiajika lithium deposit is located 70 km from Kangding County an