LithiumBank Resources Corp (TSX-V:LBNK) has hailed the findings of a hydrogeological study and well network design report for its Boardwalk lithium project in Alberta, which showed the operation will potentially provide "consistent, high-volume" brine production over 20 years.
The reports are part of the preliminary economic assessment (PEA) for the so-called 'Production Zone' at the asset. The PEA is nearly complete.
This area is where the majority of past oil and gas has been produced within the Leduc Formation since the 1960s and has provided down hole data from over 400 wells (of the over 550 in the Leduc) and assay analysis from 40 of the 65 wells within the Leduc Formation.
"We are very pleased to see such strong technical support for Boardwalk indicating the necessary reservoir parameters required to sustain a sizable lithium-brine project over a long period of time," said Rob Shewchuk, the company's CEO in a statement.
READ: LithiumBank kicks off hydrogeological study at Park Place Lithium Brine Project in Alberta
"A project of this magnitude has the potential to be a meaningful contributor to the global supply of lithium that continues to be challenged by a supply side imbalance," he added.
"The comparatively small footprint and ESG friendly development of Boardwalk, when compared to traditional hard rock and salar lithium mining projects, could provide an opportunity to produce battery grade lithium at scale and in a sustainable manner that we believe has excellent alignment with the broader environmental and sustainability initiatives that are currently being emphasized and supported across resource development industries globally."
The hydrogeology and well network design for the PEA is based on a 20-year period of production with a daily production rate of 250,000 cubic metres of brine.
Notably, the production zone comprises only 25% of LithiumBank's permits in the Leduc Formation at the project where LithiumBank has 100% of the rights.
A multi-well pad production network has been designed for improved economics and reduced surface disturbance, the company added.
An inferred resource from May, 2021 for the Boardwalk asset (formally Sturgeon Lake) is estimated at 1.122 million tonnes of elemental lithium at an average lithium concentration of 67.1 milligrams per litre (mg/L) in 16.7 cubic kilometres (km3) of formation brine volume.
The global (total) lithium carbonate equivalent (LCE) for the inferred mineral resource is 5.973 million tonnes LCE at an average grade of 67.1 mg/L.
LithiumBank is focused on lithium-enriched brine projects in Western Canada, where low-carbon-impact, rapid direct lithium extraction (DLE) technology can be deployed. It currently holds over 3.77 million acres of mineral titles, 3.44 million in Alberta and 326,000 in Saskatchewan.
These are strategically positioned over known reservoirs that provide a unique combination of scale, grade and exceptional flow rates that are necessary for a large-scale direct brine lithium production.
Contact the writer at giles@proactiveinvestors.com