Shares of E3 Metals Corp. (TSX-Venture:ETMC) have been bouncing back from a brief pullback on news that the company has been granted 389,934 hectares of strategically positioned Metallic and Industrial Minerals (MIM) permits in E3 Metals’ core area in southern Alberta.
This brings E3 Metals’ total MIM permit area to 477,898 hectares in Alberta, located over some of the most prospective areas for lithium rich Leduc formation water (Petro-Brine) according to historical testing and E3 Metals’ internal technical evaluation. With this announcement, the Company is now the largest holder of consolidated MIM Permits over the Leduc Reservoir in Alberta.
Historic results show that lithium concentrations in and around E3 Metals’ permit areas range as high as 135mg/L. As the Petro-Brine is present across the entire reservoir, the Company believes that lithium concentrations are also likely to exist throughout the entire reservoir.
The Leduc Reservoir is world renowned for the production of oil and gas due to the unique properties of this reservoir, which allows for both large volumes of fluid to be trapped in the rock and the ability to move large volumes of fluid to surface.
These same properties have shown that a single vertical well has the ability to produce as much as 20,500m3/day of water when completed to the bottom of the reservoir. This combination of anomalous lithium concentrations and the potential high production rates of petro-brines, suggests the Leduc Reservoir has the potential to be a large-scale producer of lithium.
With the land acquisition news, shares of ETMC have rallied today to the tune of 28.3% in mid-day trading at $0.68 as shareholders applaud the latest strategic move from the company to build up their land holdings in a strategically resource rich part of Alberta.
