Arizona Lithium (ASX:AZL) has announced the commencement of production drilling at its wholly-owned Prairie project located in Saskatchewan, Canada. The project, situated in the resource-rich Williston Basin, employs conventional oil and gas drilling and completion methods to extract lithium-rich brine from aquifers approximately 2.3 km underground.

Arizona Lithium Managing Director, Paul Lloyd, commented in a press release: “I am pleased to announce that we have kicked off our drilling program on schedule. The rig has been delivered to site, the first well has been spudded and the rig is now drilling our lithium wells. Operating in a mature and well-developed oil and gas province, this enables us to efficiently access the skills and services required to develop and fast track our project. These are very deep holes being drilled by a heavy duty oil drilling rig. It will take over 40 service providers and hundreds of people to execute a drilling and completion program like this. I’d like to thank all of the vendors, their employee’s and the local community for stepping up to support our project and we look forward to updating shareholders as the large drill program progresses.”

The drilling program will span several months and cover a total of three pads. The first phase involves drilling vertical wells to assess the commercial viability of the Souris River and Duperow formations, followed by the Dawson Bay formation and specific disposal targets. Production and disposal testing of the wells on the first pad is set to begin in June, according to the Australia-based lithium developer.

Arizona Lithium’s managing director, Paul Lloyd, emphasized the complexity of the drilling and completion program, stating, “These are very deep holes being drilled by a heavy-duty oil drilling rig. It will take over 40 service providers and hundreds of people to execute a drilling and completion program like this.”

The Prairie project boasts a mineral resource of 6.3 million tonnes of lithium carbonate equivalent (LCE), consisting of 4.5 million tonnes LCE indicated and 1.8 million tonnes LCE inferred. The company aims to leverage the project’s strong environmental credentials by using less freshwater, land, and waste, aligning with its sustainable approach to lithium development.

The commencement of drilling operations marks a significant milestone for Canada’s lithium industry, as it represents the launch of the country’s first commercial lithium production plant. The project’s location in Saskatchewan, one of the world’s top mining-friendly jurisdictions, offers easy access to key infrastructure such as electricity, natural gas, fresh water, paved highways, and railroads.

Having production and disposal wells in place significantly de-risks the commercialization timeline for the Prairie project, bringing it one step closer to the commercial production of lithium, which is targeted for 2025. The ongoing drilling and completion activities across the three pads over the coming months are expected to further advance the project’s development.

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.