The results from a hydrogeological study at LithiumBank Resources Corp (TSX-V:LBNK)’s 100%-owned Park Place lithium brine project, located in Alberta are “surprisingly favorable,” according to analysts at Noble Capital.
In a note to clients, the analysts wrote that the hydrogeological study indicates Park Place hosts a combined 76.3 cubic kilometres of lithium-bearing brine, meaning Park Place may be considered the largest reported lithium-brine project by volume in North America held by a single operator.
“Boardwalk and Park Place may both be considered district-scale lithium brine projects with significant potential for commercial development,” the analysts wrote.
READ: LithiumBank Resources says Park Place hydrogeological study reveals NA’s largest contiguous lithium-rich brine project by volume
Noble’s analysts highlighted that LithiumBank intends to complete a preliminary economic assessment (PEA) for Boardwalk in the first quarter or early in the second quarter of 2023 and a preliminary feasibility study (PFS) in the second half of the year.
At Park Place, a mineral resource estimate is expected in the first half of the year followed by a PEA in the second half of 2023, they noted.
Further, LithiumBank expects to complete Direct Lithium Extraction (DLE) test work and a resource estimate for its Kindersley project in Saskatchewan followed by a PEA in the second half of the year, the analysts said.
“With numerous catalysts on the horizon in 2023, the company is quickly distinguishing itself with an industry-leading portfolio of three district-scale North American lithium-rich brine projects,” they wrote.
As such, the analysts maintained their ‘Outperform’ rating on LithiumBank with a price target of US$2.75.
LithiumBank’s US-listed shares were trading up 16.3% at market open on Tuesday at US$1.02.
“With multiple projects being advanced in parallel, we think the upcoming PEA for the Boardwalk project may be a turning point for the equity as investors use it to benchmark other projects within LithiumBank’s property portfolio,” Noble’s analysts concluded.
Contact the author at emily.jarvie@proactiveinvestors.com
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