Global Energy Metals Corp (TSX-V:GEMC) announced that its strategic partner NeoLithica has initiated a direct lithium extraction (DLE) pilot test in collaboration with Geo40.
The pilot test, conducted at Geo40’s facility in Saskatchewan, utilizes lithium brine sourced from NeoLithica’s Peace River Project in northwest Alberta.
Global Energy Metals recently announced a non-binding Letter of Intent to acquire a 19.9% interest and a 1% NSR royalty in the Peace River Project, which is pending regulatory approval.
The company highlighted the pilot test as a significant step in evaluating the development potential of one of Canada’s largest inferred lithium brine resources.
The pilot program is expected to produce battery-grade lithium products for further testing by potential customers, enhancing the project's appeal to future investors and partners.
NeoLithica has already transported 7,000 litres of lithium brine from Peace River to Geo40’s facility, with results anticipated in the coming weeks.
The data generated will support an economic assessment for producing lithium chloride concentrate and battery-grade lithium carbonate, essential for securing off-take agreements with battery manufacturers.
“When we first identified the investment opportunity in NeoLithica’s 10 million tonne lithium brine resource in Alberta, we recognized the need to aggressively evaluate paths forward for its accelerated development and the ability to attract capital and build partnerships to advance this significant lithium brine resource while optimizing shareholder value in a timely manner,” Global Energy Metals CEO Mitchell Smith said in a statement.
“As a result of NeoLithica’s DLE piloting agreement with Geo40, these objectives are already being realized, and the company is laying a foundation to accumulate valuable data, produce battery-grade lithium products for further testing by potential customers, and build business relationships for a market hungry for responsibly sourced lithium.”