ORE Orocobre Limited

Orocobre Limited (TSX:ORL)(ASX:ORE)

HIGHLIGHTS

Olaroz Lithium-Potash-Boron Project:



--  Project construction is approximately 75% physically complete with
    significant milestones achieved. 
    
--  A total of US$164 m has been spent or committed via executed contracts
    on the construction project to date. 
    
--  Construction is projected to be completed on time and within budget. 
    
--  Commissioning of the liming plant commenced in December and the plant is
    due to be fully commissioned by the end of January. 
    



To view the figure associated with this press release, please visit the
following link: http://file.marketwire.com/release/oroc01311.pdf


Borax Argentina



--  Record sales achieved during the quarter. 
    
--  The project to relocate the borax chemical plant from its current
    location in Campo Quijano (close to the city of Salta) to the Tincalayu
    mine continues to progress and is expected to be completed on schedule
    and within budget. The relocation and commissioning is planned to be
    completed by June 2014. 
    
--  A prefeasibility study into the construction of a boric acid plant at
    Olacapato in Salta Province, Argentina with a production capacity of 16-
    24,000 tonnes per annum of boric acid commenced. The study is expected
    to be completed during the current quarter. 
    



Corporate



--  Cash Position of A$31.8m at the end of the quarter excluding funds in
    Olaroz Lithium Project companies. 
    
--  SAP implementation and training was well advanced by the end of the
    quarter at Borax Argentina and planned to go "live" for January monthly
    accounts. 
    



Olaroz Lithium-Potash-Boron Project

The Olaroz Project is Orocobre's flagship project located in Jujuy province of
Argentina. Together with partners, Toyota Tsusho Corporation ("TTC") and Jujuy
Energia y Mineria Sociedad del Estado ("JEMSE"), Orocobre is building the first
large scale "green fields" lithium brine project in approximately 20 years at a
capital cost of US$229.1m and will have a design capacity of 17,500tpa of
battery grade lithium carbonate. The Olaroz Project joint venture is operated
through Argentine subsidiary Sales de Jujuy SA (SDJ SA). The effective Olaroz
Project equity interest is Orocobre 66.5%, TTC 25.0% and JEMSE 8.5%.


Construction Update 

The construction of the project continues to proceed on time and within budget
and a total of approximately $164m has been spent or committed via executed
contracts in the construction project. In terms of physical progress the
construction program is approximately 75% complete. 


Since the last quarterly report, the Company announced the pumping rate had
reached approximately 190l/s. The steady state operational rate required is
180l/s with a peak filling rate of approximately 220l/s. The liming plant
commissioning schedule commenced on the 15th December and commissioning will be
complete by the end of January. The precommisioning schedule for the gas
pipeline commenced on 13th of December as planned. Evaporation pond earthworks
remain ahead of schedule. The electricity generation plant is near completion.
Testing on the natural gas pipeline was completed in early January and the next
task is to connect to the main Gas Atacama pipeline. Construction works continue
on the lithium processing plant, finished goods warehouse and the soda ash
warehouse. 


The project implementation is through EPCM (Engineering, Procurement and
Construction Management) with a high proportion of local involvement through
construction and supply contracts and local employment. The unique community and
shared value policy continues as a key success factor, training local people
under the supervision of high quality experienced professionals.


To view the second figure associated with this press release, please visit the
following link: http://media3.marketwire.com/docs/oroc01312.pdf 


To view the third figure associated with this press release, please visit the
following link: http://media3.marketwire.com/docs/oroc01313.pdf 


For more gallery photos please click here 

For more information on Olaroz please click here

Borax Argentina

Borax Argentina has extensive operations and has a fifty year production history
producing borax chemicals, boric acid and boron minerals. The production
currently comes from three principal mines at Tincalayu, Sijes and Porvenir with
concentrators at the first two locations and a chemicals plant at Campo Quijano
producing refined products. The borax circuit at the chemicals plant is in the
process of being relocated to the Tincalayu mine where the mineral for borax
production, tincal, is mined.  


There are historical estimates on the mineralisation at these mines and at two
undeveloped deposits (please click here for the ASX Announcement on historical
estimates). These estimates currently form the basis for both the current
operations and plans for developing the business.


Operations 

Approximately 11,410 tonnes of combined products were sold during the quarter.
This is an increase on the previous quarter and also 14% above the same quarter
last year. Market conditions are still soft with downward pressure on prices and
strong competition however, there are signs that the market cycle will move out
of the trough during the 2014 calendar year. In spite of the challenging market
conditions, Borax Argentina achieved record sales during the quarter in terms of
both volume and revenue.


Combined product sales volume by quarter: 



----------------------------------------------------------------------------
Quarter                                      Combined Product Sales (tonnes)
----------------------------------------------------------------------------
September 2012                                                         9,161
----------------------------------------------------------------------------
December 2012                                                         10,007
----------------------------------------------------------------------------
March 2013                                                             9,182
----------------------------------------------------------------------------
June 2013                                                              9,562
----------------------------------------------------------------------------
September 2013                                                        10,103
----------------------------------------------------------------------------
December 2013                                                         11,410
----------------------------------------------------------------------------



Boric Acid Plant Pre-Feasibility Study 

On 4 November, 2013, the Company advised of the commencement of a prefeasibility
study into the construction of a new Boric Acid plant at Olacapato in Salta
province, Argentina. The study will assess the feasibility of constructing a
boric acid plant with a production capacity of 16-24,000 tonnes per annum of
boric acid. 


The plant flow sheet will be designed to allow treatment of lower "run-of-mine"
grade ores than are currently being processed and with the aim of obtaining
higher recoveries and reduced operating costs. Currently, ore is mined at less
than 20% B2O3 and upgraded by hand methods and screening to 26% for cartage to
Campo Quijano. Based on earlier internal company scoping studies, the estimated
capital cost of the boric acid plant is in the range of US$13-17million
including a 35% contingency. 


The pre-feasibility study is scheduled to be completed during the first quarter
2014. Assuming a positive outcome from the pre-feasibility study, the
feasibility study would be completed and the required permits obtained in the
following six months with a view to commence construction in the latter part of
2014. 


Currently, Borax Argentina produces boric acid from a 9,000 tonnes per annum
plant at Campo Quijano near Salta city, processing ulexite mineralisation mined
from Porvenir which is located 300kms away. The plant is designed to treat a
high grade feed of ulexite mineralisation which has been selectively mined and
then upgraded by drying and hand sorting. 


There are potential advantages to the construction of a new and larger facility
at Olacapato. In particular, by being able to process lower grade "run-of-mine"
ore the costly and time consuming process of drying and hand sorting would be
eliminated and the mining and processing recovery of mineralisation increased.
In addition, the long cartage by road transport would be eliminated and the
increased production rate would provide economies of scale compared to current
operations.  


Boric acid is used in a wide variety of applications including glass, ceramics,
fertilisers and wood preservatives. The market has a growth profile above world
GDP growth. For standard and agricultural grade boric acid, pricing has ranged
approximately between US$750/t to $1,250/t CIF over the past 5 years.


Please refer to the "Boric Acid Prefeasibility Study" ASX announcement dated 4th
November 2013 for further details. 


To view the fourth figure associated with this press release, please visit the
following link: http://media3.marketwire.com/docs/oroc01314.pdf 


Borax Plant Relocation 

The Company announced a significant advance at its 100% subsidiary Borax
Argentina on 1st July with the decision to relocate the borax chemical plant
from its current location in Campo Quijano (close to the city of Salta) to the
Tincalayu mine site where the mineral, tincal, used to make borax is mined. The
Borax Argentina chemical plant produces borax decahydrate, borax pentahydrate
and anhydrous borax. 


The relocation of the borax plant to the Tincalyu mine site will have
significant benefits through both the reduction of operating unit costs and also
increasing overall mineral recovery from the mine. 


The progress on the project is running to plan with a high rate of activity
occurring now through to March 2014. Currently, the project is running on
schedule and within budget. The completion date for the project is forecast to
be June 2014. The Company considers this project an exciting development which
will position the Borax Argentina business well for the future.


Historical Estimate for JORC Compliant Resource Conversion Programme

Porvenir

As advised last quarter, and in order to fit into the Boric Acid plant PFS, the
company prioritised the work to upgrade the Porvenir historical estimate to JORC
compliant resources. The mineralisation at Porvenir, ulexite, is currently used
to make boric acid at the boric acid plant in Campo Quijano and is the most
probable initial ore source for the possible plant at Olacapato. Pulps from the
original drilling programs were sent for re-assay at the company's own
laboratories and independent laboratories and the geological data was
re-interpreted. Modelling has been completed and public reporting will be
finalised once the mining study and cut-off study have been completed as part of
the boric acid plant PFS. This is expected during the current quarter.


Tincalayu 

During the quarter, work continued on the programmes to convert the Tinaclayu
historical estimates to JORC compliant resources. The work programme has
involved so far:




--  Extensive pit mapping to provide geometrical controls of stratigraphy
    and structures which will be correlated later with past flitch plans and
    drill logs 
    
--  Geochemical sampling of different horizons to provide controls on past
    drilling and bench plans 
    
--  Re-assaying of drill core pulps by the company's laboratory and external
    laboratory 
    



A 3D model of the stratigraphy, mineralised horizons and faults is currently
being constructed. It is planned to have a resource estimate completed in the
2nd Quarter 2014.


Other deposits 

Concurrently with the final work on Tincalayu, work has started on the salar
hosted ulexite deposits at Diablillos. The scope of this is very similar to the
Porvenir study scope and can be completed quickly, most likely in the next
quarter. On completion, the focus will move to the tertiary Sijes hydroboracite
deposit. 


For more information on Borax Argentina please click here

Corporate and Administration

Institutional Capital Raise

During November, the Company completed a placement of 14,296,771 shares to
institutional investors at an issue price of $2.10 per share, raising A$30m. The
issue price represented a 7.0% discount to the ASX closing price prior to the
Company entering into a trading halt on 11 November. The non-underwritten
placement was significantly oversubscribed, with participating investors from
Australia, Hong Kong, the United Kingdom and the United States. A$20m of the
proceeds is anticipated to be used to fund Borax Argentina expansion and
efficiency initiatives and A$10m for corporate working capital.


SAP Implementation 

An SAP ERP system has been implemented at Sales de Jujuy SA. Final testing of
the SAP system and user training has been conducted at Borax Argentina during
January with a scheduled system "go live" date of 3 February 2014.


Cash Position

At the end of the quarter, the company had a cash position of A$31.8m excluding
funds in Olaroz Lithium Project companies.


About Orocobre Limited 

Orocobre Limited is listed on the Australian Securities Exchange and Toronto
Stock Exchange (ASX:ORE)(TSX:ORL), and is building a substantial
Argentinian-based industrial minerals company through the construction and
operation of its portfolio of lithium, potash and boron projects and facilities
in the Puna region of northern Argentina. The Company is building in partnership
with Toyota Tsusho Corporation the first large-scale, de-novo brine based
lithium project in 20 years at its flagship Salar de Olaroz resource, with
projected production of 17,500 tonnes per annum of low-cost battery grade
lithium carbonate scheduled to commence in Q2 2014. The Company also wholly-owns
Borax Argentina, an important regional borate producer. Orocobre is included in
the S&P/ASX 300 Index. For further information, please visit www.orocobre.com.


Technical Information, Competent Persons' and Qualified Persons Statements

The information in this report that relates to Exploration Results or Mineral
Resources is based on information prepared by, or under the supervision of Mr.
Murray Brooker. Murray Brooker is a geologist and hydrogeologist and is a Member
of the Australian Institute of Geoscientists. Murray has sufficient relevant
experience to qualify as a competent person as defined in the 2004 edition of
the Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves. He is also a "Qualified Person" as defined in NI 43-101. 


Additional information relating to the Company's projects is available in
"Technical Report - Salar de Olaroz Lithium-Potash Project, Argentina" dated May
30, 2011, (the Olaroz Report), the "Technical Report - Salinas Grandes Project"
dated April 30, 2010 and the "Technical Report - Salar de Cauchari Project,
Argentina" dated April 30, 2010, respectively, which have each been prepared by
John Houston, Consulting Hydrogeologist, together with, in the case of the
Olaroz Report, Mike Gunn, Consulting Processing Engineer, in accordance with NI
43-101. 


The information in this report that relates to mineralisation at Borax Argentina
sites has been prepared by Mr Murray Brooker. Murray Brooker is a geologist and
hydrogeologist and is a Member of the Australian Institute of Geoscientists.
Murray has sufficient relevant experience to qualify as a competent person as
defined in the 2004 edition of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves. He is also a "Qualified
Person" as defined in NI 43-101. The information in this report that relates to
mineral processing has been prepared by Mr Peter Ehren. Peter Ehren is a Member
of the Australasian Institute of Mining and Metallurgy and Chartered
Professional and is a consulting mineral processing engineer. Mr Ehren is also a
"Qualified Person" as defined in NI43-101. The Company confirms that it is not
aware of any new information or data that materially affects the information
included in the references above and that all material assumptions and technical
parameters underpinning the resource estimates continue to apply and have not
materially changed. The Company also confirms that the form and context in which
the Competent Person's findings are presented have not been materially modified.



Additional information relating to the Company's projects is available on the
Company's website. 


Caution Regarding Forward-Looking Information

This news release contains "forward-looking information" within the meaning of
applicable securities legislation. Forward-looking information contained in this
release includes, but is not limited to, construction at the Olaroz Project and
the timing thereof, the commencement of commercial production at the Olaroz
Project and the timing thereof, the projected production of lithium carbonate at
the Olaroz Project and the expected brine cost and grade at the Olaroz Project. 


Such forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause actual results to be materially
different from those expressed or implied by such forward looking information,
including but not limited to the risk of further changes in government
regulations, policies or legislation; the possibility that required concessions
may not be obtained, or may be obtained only on terms and conditions that are
materially worse than anticipated; the risk that the conditions precedent to
draw down the project financing with Mizuho Corporate Bank will not be met; that
further funding may be required, but unavailable, for the ongoing development of
the Company's projects; fluctuations or decreases in commodity prices;
uncertainty in the estimation, economic viability, recoverability and processing
of mineral resources; risks associated with weather patterns and impact on
production rate; risks associated with construction and development of the
Olaroz Project; unexpected capital or operating cost increases; uncertainty of
meeting anticipated program milestones at the Olaroz Project; general risks
associated with the feasibility and development of the Olaroz Project; as well
as those factors disclosed in the Company's Annual Report for the year ended
June 30, 2013 filed at www sedar.com. 


The Company believes that the assumptions and expectations reflected in such
forward-looking information are reasonable. Assumptions have been made
regarding, among other things: the timely receipt of required approvals and
completion of agreements on reasonable terms and conditions; the ability of the
Company to obtain financing as and when required and on reasonable terms and
conditions; the prices of lithium and potash; and the ability of the Company to
operate in a safe, efficient and effective manner. Readers are cautioned that
the foregoing list is not exhaustive of all factors and assumptions which may
have been used. There can be no assurance that forward-looking information will
prove to be accurate, as actual results and future events could differ
materially from those anticipated in such information. Accordingly, readers
should not place undue reliance on forward-looking information. 


The Company does not undertake to update any forward-looking information, except
in accordance with applicable securities laws.


Not For Release in US

This announcement has been prepared for publication in Australia and may not be
released in the U.S. This announcement does not constitute an offer of
securities for sale in any jurisdiction, including the United States, and any
securities described in this announcement may not be offered or sold in the
United States absent registration or an exemption from registration under the
United States Securities Act of 1933, as amended. Any public offering of
securities to be made in the United States will be made by means of a prospectus
that may be obtained from the issuer and that will contain detailed information
about the company and management, as well as financial statements.


ABN 31 112 589 910

FOR FURTHER INFORMATION PLEASE CONTACT: 
Orocobre Limited
David Hall
Business Development Manager
M: + 61 407 845 052
dhall@orocobre.com


Orocobre Limited
James Calaway
Chairman
M: + 1 (713) 818 1457
jcalaway@orocobre.com

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