LithiumBank Resources Corp (TSX-V:LBNK) revealed that Matrix Solutions Inc has completed the hydrogeological study for its wholly owned Kindersley Lithium-brine project, 160 kilometers (km) west of Saskatoon in Saskatchewan.
Encouraged by two anomalous lithium brine samples collected from the Duperow Formation within the Kindersley project area in 2017 by the Saskatchewan Geological Survey, LithiumBank established a strategic core position in December 2021.
The Calgary, Alberta-based exploration company focused on lithium-enriched brine projects in western Canada, now plans to collect samples from the Duperow Formation and use its experience from its Boardwalk project in Alberta to fast-track a National Instrument 43-101 (NI 43-101) technical report and a future Preliminary Economic Assessment (PEA).
READ: LithiumBank Resources shares pop on 'historic achievement' at Boardwalk lithium brine project in Alberta
LithiumBank engaged Matrix to conduct an in-depth geological and hydrogeological study of the company’s 41,014 hectares (101,347 acres) of mineral leases located 5km north and east of the town of Kindersley.
The study is a compilation of all available data in the area from historic and ongoing hydrocarbon activities. It aims to provide the level of detail required in preparing a NI 43-101 compliant technical report and ultimately to evaluate the Kindersley project’s potential for future lithium-brine production.
The Duperow Formation, which is stratigraphically similar to the Leduc Formation, in Alberta, was the focus of Matrix’s study as it is actively used as a water source and has shown enriched concentrations of lithium as compared to other basinal aquifer concentrations in the area.
The Matrix study indicates hydrogeological characteristics including porosity and permeability at the Kindersley project is positive and consistent with historical long-term production rates in proximal wells and a cumulative historical brine production of 3.3 million cubic meters (m3), said the company.
In addition to active water wells, there are several injection wells in the Duperow Formation with injection rates of over 2,000 m3 a day. Based on the available data, Matrix estimates a single well in the Duperow Formation may be capable of producing brine at a daily rate of up to 1,600 m3.
Within the area of the mineral leases comprising the Kindersley project, Matrix utilized all available drill stem tests (DSTs), historical production rates, fluid chemistry analysis, formation top picks and logs and core for petrophysical analysis. Utilizing a petrophysical analysis, a number of porosity cut-offs were defined from 1-30%. Mapping the porosity cut-offs allowed for the calculation of brine volume across the company’s mineral leases.
Although a 3% porosity is a common cut-off used, the data suggests a 6% porosity cutoff is more appropriate when considering long-term brine production. Investors can see the Kindersley project’s volumes based on different porosity cut-offs assuming 100% water saturation here.
The company highlighted the following points from the study:
- Matrix assessed reservoir properties and aquifer deliverability within LithiumBank’ mineral leases and identified multiple zones of potential lithium brine production within the Duperow Formation adding up to roughly 90 m in net pay at a 6% porosity cut-off;
- The Duperow Formation is an unconfined aquifer that measures up to 300 m within the area of the company’s mineral leases comprising the Kindersley project
- The Duperow Formation hosts a brine volume of 3.89 km3 at a 6% porosity cut-off;
- Expected brine production from the Duperow Formation is up to 1,600 m3 per day;
LithiumBank currently holds over 4.07 million acres of mineral titles, 3.68 million acres in Alberta, and 326,000 acres in Saskatchewan.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive