REED Resources says better than expected metallurgical test results from the Mt Marion Lithium Project have boosted the prospects of production commencing in 2010.
In addition, the targeted resource has been increased from 4-5Mt to 7-8Mt. The Phase I resource definition drilling programme has commenced and Phase II is planned for December 2009. A mineral resource estimate is planned to be completed by the end of Q1 2010.
The Joint Venturers expect to mobilise a processing plant and related equipment in Q2 2010. First shipments of product, at a production rate of 17,000 tonnes per month of +6.5% Li2O concentrate, is expected to commence from Q3 2010, subject to a decision to mine and obtaining all necessary approvals.