Yellowknife Lithium Project Shows Promise as LIFT’s Testwork Hits High Extraction Rates

The Yellowknife Lithium Project, a flagship asset of Canadian miner LIFT Resources, has taken a significant step forward with preliminary testwork revealing robust lithium conversion metrics. The results, announced in April 2025, suggest the project could become a key supplier to North America’s growing lithium battery market, leveraging its high-grade spodumene deposits and strategic infrastructure advantages.

Metallurgical Success: High Extraction Rates and Scalable Processes

The metallurgical testwork, conducted by SGS Canada, focused on converting spodumene concentrate from the Big East deposit into leachable lithium. Key outcomes include a 98% lithium extraction rate under standard conditions—achieved at 1050°C with a 30-minute calcination cycle—and a lithium concentration in the pregnant leach solution (PLS) of 19,600 mg/L, which is competitive with global benchmarks. Even at a shorter 15-minute calcination period, extraction remained strong at 96%, signaling potential operational flexibility.

The spodumene concentrate tested contained 5.60% Li₂O, with a mineralogical composition of 70% spodumene, suggesting the deposit’s consistency and purity. While impurities like aluminum (up to 4,200 mg/L) and iron (622 mg/L) were present in the PLS, these are typical in lithium processing and can be managed through standard purification steps. The results align with industrial-scale parameters, reinforcing the project’s technical viability.

Infrastructure and Location: A Strategic Edge

The Yellowknife Project’s geographic advantages are equally compelling. Located in the Northwest Territories, it benefits from existing rail access at Hay River, proximity to all-weather roads, and nearby powerlines. These factors could significantly reduce transportation and infrastructure development costs, a critical consideration for lithium projects often plagued by remote locations and high capital expenditures.

The project’s resource estimate of 50.4 million tonnes at 1.00% Li₂O—third-largest in Canada—further underscores its scale. With North America aiming to reduce reliance on overseas lithium imports, Yellowknife’s positioning as a domestic supplier could prove advantageous.

The Path to Commercialization: PEA and Exploration Upside

LIFT plans to publish a Preliminary Economic Assessment (PEA) by Q2 2025, which will clarify the project’s capital costs, production timelines, and returns. Current testwork results suggest strong fundamentals: high extraction rates reduce processing costs, while the deposit’s size supports long mine life.

Ongoing exploration, including step-out drilling and metallurgical tests on additional pegmatite targets, aims to expand the resource base. If successful, this could further enhance the project’s economics, making it a cornerstone of LIFT’s portfolio.

Risks and Considerations

While the results are promising, challenges remain. Lithium markets are cyclical, and competition from established producers in Australia and South America could pressure prices. Additionally, permitting timelines in Canada’s regulatory environment, though generally supportive of critical minerals projects, could introduce delays.

Conclusion: A Strategic Play for North American Supply Chains

The Yellowknife Lithium Project’s preliminary testwork delivers a strong foundation for commercialization. With 98% lithium extraction, a large resource base, and infrastructure advantages, it positions LIFT as a credible player in North America’s lithium landscape. The project’s alignment with domestic supply chain goals—bolstered by proximity to rail and power—could accelerate its development, particularly as battery demand surges.

Crucially, the 50.4 million-tonne resource and the PEA’s pending results will be pivotal in determining scalability. If LIFT can replicate these results at scale and secure financing, Yellowknife could emerge as a critical node in the continent’s lithium supply chain, rewarding investors who bet early on its potential.

For now, the testwork marks a milestone—a reminder that high-grade deposits and smart infrastructure planning can turn geological potential into economic reality.