John Wightman, Managing Director of The Goldfields Group of Companies, provides the latest updates on the Brazil Lake Lithium Project, covering its strategic advantages, exploration progress, and future potential.
The Brazil Lake Lithium Project, located in southwestern Nova Scotia, is emerging as a key player in the global lithium supply chain. As demand for lithium continues to grow – driven by the expansion of electric vehicles, battery storage, and clean energy solutions – projects like Brazil Lake are increasingly crucial for securing a stable and sustainable supply of this critical mineral.
In this interview with John Wightman, we discuss the project’s unique advantages, recent exploration developments, and future plans. Join us as we dive into what makes this project a standout asset in the global lithium market.
Please can you introduce us to the Brazil Lake Project and explain what makes it a standout asset?
We’re operating in a highly supportive government environment. The Premier of our province, Tim Houston, has recently expressed strong backing for critical minerals mining, particularly lithium, which is great news for us. We’ve got enthusiastic support from government officials at all levels, and the teams working in regulatory departments are keen to see this project move forward.
In terms of location, we are positioned at the southwestern tip of Nova Scotia, around 43 degrees north. This location gives us a relatively mild climate with generally gentle winters. Additionally, we are close to key shipping infrastructure, with the Yarmouth Port just half an hour away. If we decide to export our product to the Eastern Seaboard, we could efficiently use sea-going barges to reach various destinations.
Beyond logistics, we are well-positioned in terms of infrastructure. We are within a kilometre of the power grid and bracketed by paved highways on both sides. Another advantage is our local workforce, meaning there is no need to establish an expensive mining camp – most workers would have a commute of less than 30 minutes. The town of Yarmouth serves as the regional service centre, ensuring easy access to equipment, supplies, and servicing.
The deposit itself meets international standards, with a lithium oxide grade of approximately 1.2%. Our spodumene crystals are exceptionally large, some measuring up to three meters in length. This megacrystic nature is beneficial for processing since smaller-grained spodumene – sometimes called “rice spodumene” – can be more challenging to handle.
You announced the Maiden Resource Estimate (MRE) last year. Has there been further progress since then?
Since that announcement, we’ve prepared a small bulk sample and sent it to SGS Lakefield, one of the premier metallurgical testing companies in North America and globally. They will conduct comprehensive tests on the material we provide.
As you may know, lithium prices peaked around December 2022 but have since declined by over 80% in the past 18 months. At those lower prices, the mine is not currently profitable, making it difficult to secure funding to advance the project. However, over the past six to eight weeks, we’ve started to see a turnaround. Prices had been steadily declining, but now they’re beginning to rise again. It will be interesting to observe what happens after the Chinese New Year when markets become more active.
Developing a mine from our current stage typically takes around four years. Our next key step is to complete a preliminary economic assessment (PEA), also known as a scoping study, once the sample analysis from Lakefield is complete. We are confident the results will be positive. If so, our Australian partners, Lithium Springs, plan to list in Australia and raise the necessary funds to progress toward a bankable feasibility study. While the temporary slowdown has caused some delay, I believe it will only extend our timeline by about a year.
At present, our MRE stands at 10 million tonnes of ore, but we have strong evidence of additional pegmatite formations on the property. Our long-term projection suggests an upside potential of 20 to 30 million tonnes. If we were to extract one million tonnes per year, that would translate to a 20 to 30-year mine life. Notably, only 5% of the property has been drilled so far, leaving significant room for further expansion.
You mentioned earlier that the government has been increasing its support for critical minerals. Do you expect continued investment, and how could that help drive the industry forward?
The government’s primary role is not necessarily direct funding – although, at the early exploration stage, seed funding is crucial. Now that we are at an advanced stage, government support will be more about streamlining the permitting process.
Nova Scotia has one of the world’s most stringent environmental assessment processes. While we take environmental protection seriously, these procedures can take up to four years. However, with the Premier’s clear directive to his ministers, I believe we can reduce this timeline significantly – potentially to under a year.
Lengthy permitting timelines have been one of the biggest hurdles for mining projects across Canada. Fortunately, there’s growing recognition at both the provincial and federal levels that these processes need to be streamlined. The federal government is also working with provinces to make regulatory approvals more efficient.
What are your key targets for the next 12 months?
By this time next year, I’d like to see the PEA completed. That would allow Lithium Springs to secure funding and set the stage for a large-scale drilling programme, possibly within 12 to 14 months. The drilling done so far does not yet meet the requirements for a bankable feasibility study, so we will need to conduct extensive infill drilling to confirm our resource estimates. While we are confident in our projections, financial markets require additional drilling data before considering investment.
The lithium market has seen a sharp decline, but analysts at Benchmark, one of the most trusted sources in the industry, project that a supply deficit will emerge in the coming years. By 2028, there may not be enough lithium produced to meet market demand.
This timing aligns well with our project. If lithium prices rise over the next three to five years, our mine will become increasingly viable, making it easier to secure funding and move into production. We are already in discussions with potential offtake partners, and there is significant interest in securing spodumene concentrate from our site.
If any lithium project in Canada – or even globally – is well-positioned for success, Brazil Lake is among them. Its location, resource size, cost-effective operating environment, proximity to supply centres, and access to a skilled workforce all make it a standout asset. If lithium mining has a future, then we believe Brazil Lake will be a key player in that landscape.
