Canada's First Phosphate (WKN A3DQCH / CSE PHOS) has just received some very positive news. According to a report by Queen's University, there is a high probability that the Lac a l'Original property, the company's main project, has a phosphorus deposit that meets ESG (Environmental, Social and Governance) criteria.
In the report, entitled "Characterization of First Phosphate's Lac à l'Orignal Phosphate Deposit, Lac-Saint-Jean Anorthosite (LSJA) Complex, Quebec, Canada: Implications for Supplying Lithium Ferro (Iron) Phosphate (LFP) Batteries," Queen's University's Pufahl Research Group concludes that the Lac a l'Original deposit is highly likely to be an ESG-compliant, North American source of phosphorus for the LFP battery industry.
Among other things, the report also concludes that the Lac a l'Original deposit could be a potentially viable source of phosphorus for the LFP battery market because, for example, the concentrations of P2O5 (diphosphorous pentoxide) and CaO (calcium oxide), as well as the ratio of CaO to P2O5, are better than what is needed to produce phosphoric acid – which is what’s needed for LFP batteries.
In addition, the researchers added, low levels of sulfidic gangue minerals indicate that the environmental risk of acid mine drainage is minimal. The low sulphide mineral content and low concentration of deleterious trace elements would make the Lac a l'Original deposit an attractive ESG-compliant source in North America for the LFP battery industry, they add.
Conclusion: The prospect of Lac a l'Original potentially being an a priori ESG compliant deposit to supply the LFP battery industry is a potentially significant advantage for First Phosphate. It is based primarily on the fact that Lac a l'Original contains phosphate in igneous anorthosite rock, which is one of the rarest and purest sources of phosphate material for the LFP battery industry. This also gives First Phosphate an important differentiator from other companies that are thinking about producing phosphate from sedimentary rock, for example, and which are unlikely to be ESG compliant and thus more suitable for fertilizer production than for LFP batteries.
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