Covid-19 slows engineering work on Sonora lithium project

Restrictions put in place to counter Covid-19 have slowed engineering work on Bacanora Lithium’s Sonora project in Mexico, the London-listed junior said Monday.

Staff reporter
Bacanora's pilot plant at Sonora in Mexico

Bacanora's pilot plant at Sonora in Mexico

Bacanora said engineering work would now be completed in Q3, having previously guided for Q1. It plans to complete financing and begin construction before the end of 2020.

Bacanora's chairman Mark Hohnen and CEO Peter Secker released a joint statement, saying the company would "continue to work as best we can within the current restrictions to deliver the final design work and construction contracts that should allow us to finalise project financing and commence site works before the end of this year".

The pair noted Bacanora remains well funded, with more than US$47 million in the bank.

"Together with its supportive shareholders and partners, it is well positioned to withstand the continued effects of Covid-19," said the executives.

Sonora state had its first confirmed case of Covid-19 last week, which the local government responded to by closing schools and non-essential business operations, as well as cancelling events of more than 10 people.

"Administrative staff, based in Hermosillo, are now working remotely. The pilot plant will continue to operate on day shift until the next batch of kiln and lithium samples are shipped to the USA and China, or until the company is required to temporarily close its operations following a government directive," said Bacanora.

Bacanora's Sonora project boasts 8.8 million tonnes of lithium carbonate equivalent resources, with an approximate 250 year resource life, according to the company's December 2017 feasibility study.

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