LithiumBank Resources Corp (TSX-V:LBNK) told investors it is encouraged by modelling and engineering work at the Kindersley lithium project (LKLP) in Saskatchewan, where it sees potential for some of the highest lithium-brine grades in western Canada.
Whilst the company expects its focus for 2023 will be on its flagship ‘district scale’ Boardwalk and Park Place assets, in Alberta, Tuesday’s project update from LKLP give insights into the scope and potential of the explorer’s portfolio.
LKLP is located within the Duperow formation which is described by the company as is stratigraphically equivalent to the Leduc formation which, in Alberta, is host to Boardwalk and Park Place.
LithiumBank, in a statement, highlighted that its primary objective for LKLP is to target areas within the Duperow Formation that meet two key criteria - brine concentrations above 70 mg/L and have production data that can indicate large volumes of brine.
The LKLP is situated on the Duperow Formation, which is stratigraphically equivalent to the Leduc Formation in Alberta, where the company’s Boardwalk and Park Place district projects are based.
At LKLP, LithiumBank has acquired 111,282 acres of Crown mineral permits.
It is described as the company’s most advanced project in Saskatchewan.
The project has significant historic oil and gas infrastructure, including past producing wells, all-season roads, and proximity to electricity and gas lines, and is Crown land, which doesn't have the royalty and other obligations associated with freehold land holdings in the region.
Eyeing PEA in 2H 2023
Looking ahead, the company’s plan is to conduct further field work (including testing and sampling) followed by desktop analysis to move the project towards a preliminary economic assessment (PEA) which could be completed in the second half of this year.
The study is expected to include direct lithium extraction test work, brine chemistry analysis and characterization, reservoir flow characteristics, reservoir development strategy, infrastructure availability, environmental and social assessment, and financial modelling.
To date, it has modelled lithium-containing brine volumes of around 3.89mln barrels, and it is working to firm up these models to a NI 43-101 Resource Estimate, which could take less than six months according to the company.
The company told investors it is encouraged by positive lithium brine sampling results obtained by contiguous operators and expects to continue to invest in LKLP.
Its portfolio of Crown lithium claims is the largest acquired by any company via public land sale in Saskatchewan, and the company's strategy for its Saskatchewan portfolio of assets includes the potential for strategic partnerships and joint ventures.
“We believe that LKLP’s Crown land position, being unimpeded by material work commitments, royalty, earning & confidentiality obligations associated with freeholdings, is well-positioned for expedient development,” said chief executive Rob Shewchuk.
“Furthermore, we look forward to working with the Province of Saskatchewan and other stakeholders to establish a fair pooling agreement for shared lithium brine reservoirs.”