With global leaders phasing out combustion engine cars for electric vehicles, we’re running short on key metals, like lithium. Even the International Energy Agency warned that, “The supply of critical minerals crucial for technologies such as wind turbines and electric vehicles will have to be ramped up over the next decades if the planet’s climate targets are to be met.” In addition, lithium prices are only set to soar with supply-demand issues. Automakers are scrambling for supply. And firms, such as Trafigura say lithium “demand will hit 800,000 tons of lithium carbonate equivalent this year — overshooting supply by 140,000 tons — and sees demand rising by a further 200,000 to 250,000 tons annually through 2025.” That’s all good news for companies such as Grounded Lithium Corp. (TSXV: GRD) (OTCQB: GRDAF), Standard Lithium (TSXV: SLI) (NYSE: SLI), Albemarle Corp. (NYSE: ALB), Livent Corp. (NYSE: LTHM), and Lithium Americas (TSX: LAC) (NYSE: LAC).
Look at Grounded Lithium Corp. (TSXV: GRD) (OTCQB: GRDAF), For Example
Grounded Lithium Corp. announced results from recent field activities. GLC drilled the second ever dedicated lithium well in the Province of Saskatchewan during the summer of this year. Completion work, along with extensive analysis and interpretation of the completion results ensued over the last several months. This was combined with other associated field work with respect to lithium concentration testing on both the 4-15 Well and third-party wells in the surrounding area. The Company has been diligent in advancing operational results to determine the extent and economic potential of our Kindersley Lithium Project. The Company has also commissioned an updated technical report pursuant to National Instrument 43-101 – Standards of Disclosure for Mineral Projects. The Company materially added to the KLP land base as well as securing additional key data since the publishing of the inaugural KLP NI43-101 Technical Report and will communicate results of our new Technical Report once finalized.
4-15 Well Deliverability Results
GLC drilled the 4-15 Well in seven days from spud to rig release demonstrating a critical component of an economic project. Shallow depth directly correlates into reduced drilling days which in turn directly correlates to minimized capital costs and enhanced project economics. Seven inch casing was cemented in place into the top of the Duperow formation at 966 meters and then the rig further drilled out to a total depth of 1,145 meters. The well provided 179 meters of open hole with 107 meters of net pay greater than 3% porosity through that interval. The 4-15 Well completion provides critical fluid delivery information and lithium concentrations to assess economic potential of a lithium from brine operation. During production testing, we delivered brines free of hydrocarbons and sour gas impurities, either of which could result in an increase in the capital costs associated with above-ground infrastructure. At various points during the production testing staff collected a number of brine samples which were tested through controlled third-party laboratories and demonstrated concentrations between 74 and 81 mg/l of elemental lithium.
The Company utilized an electric submersible pump to assess well deliverability. The ESP for this test ran at its maximum flow capability with clear and continuous strong pressure support from the reservoir. The comprehensive flow and pressure data acquired provided key information for detailed three-dimensional reservoir flow modeling based on rock properties, such as thickness, porosity and permeability. Data for this comprehensive analytical process came not only from the 4-15 Well itself but also numerous wells and their associated properties from the surrounding area. The observed well performance and pressure measurements were linked to the rock properties within the model allowing for accurate depiction of future well performance under different drilling, completion and equipping strategies.
Stemming from this detailed assessment, we anticipate the optimal well design for production operations features a short up to 700 meter horizontal or directional section, at minimal incremental costs, upon entering the targeted Duperow zone to deliver well productivity rates of up to 29,000 bbls/day. Dolomotized reservoirs with this quality of porosity and permeability do not require costly fracture stimulations to enhance productivity. Despite a robust maximum flow parameter, based on best practices in reservoir exploitation we target a more conservative producing well flow rate of 18,000 bbls/d of brine. At these brine production rates, taking into consideration modest price forecasts for battery grade lithium feedstock, lithium from brine projects are expected to achieve a compelling economic proposition. These well parameters, together with a detailed assessment of capital and operating costs, will be included in our preliminary economic assessment on the KLP anticipated to be completed in Q2 2023.
Area Concentration Testing
Additional brine samples from an existing well in the surrounding area were taken in the late summer, following the same stringent custody of control procedures implemented during the 4-15 Well testing. Officials from two separate and industry respected laboratory testing organizations maintained constant control over the sampling exercise and delivered the samples to facilities in Calgary, Alberta for further assessment. Multiple tests were conducted by the two independent organizations to confirm results. Lithium concentrations averaged 72 mg/l. This second well is operated by an oil and gas producer who granted us rights under contract to take necessary samples for testing. This well is a candidate for future production should capital be deployed to maximize its operational deliverability of brine and a suitable commercial arrangement can be reached with the third-party oil and gas company. Lastly, we look to test additional third-party wells within the area as the opportunity arises.
“The information collected from our inaugural well and other concentration testing clearly confirms our expectations from the Kindersley area and supports the essence of our investment thesis,” commented Gregg Smith, President & CEO. “We can partner strong lithium concentrations with high brine deliverability, resulting in a very economic project. These key parameters will factor significantly into our PEA for the KLP which is underway. We have remained true to our guiding geologic principals of grade, depth, porosity and thickness and are very comforted that our initial drilling results on the play are consistent with our modeling, providing the corporate conviction to advance the project to future milestones.”
Other related developments from around the markets include:
Standard Lithium, a leading near-commercial lithium company, announced it has completed all necessary agreements with LANXESS Corporation to secure access to the proposed commercial lithium plant site and conduct all required fieldwork to support the Definitive Feasibility Study (DFS) underway. Standard Lithium is also pleased to report that subsequent to signing the Site Access Agreement, the Company has commenced the site work necessary for the design of its first commercial lithium plant. Dr. Andy Robinson, President of Standard Lithium commented,
Albemarle Corp., a leader in the global specialty chemicals industry, announced planned investments of up to $540 million to expand and modernize two bromine facilities in Magnolia, Arkansas, designed to meet growing demand for fire safety and specialty products in several industries, including technology, safety, transportation, and green energy. The planned investments have begun and will continue through 2027. “We have a long, rich history of operations in Columbia County with a strong commitment to both the community and the economy in the region,” said Netha Johnson, Albemarle’s president of Bromine. “The facility investments, along with the jobs and the economic stability they bring, reaffirm our dedication to the area and to meeting our customers’ needs as we work together to build the technologies of the future for a safer, greener world.”
Livent Corp. opened the first of several major expansions of the company's operations around the world, significantly boosting its lithium hydroxide production capacity in Bessemer City, North Carolina, a birthplace of lithium-ion battery technology and an increasingly important supply hub for the growing electric vehicle (EV) industry. Livent's leading footprint in North America positions the company to take advantage of long-term growth opportunities and downstream incentives from the recently enacted Inflation Reduction Act (IRA), which encourages use of lithium produced or processed in North America. The expansion in Bessemer City will boost the site's lithium hydroxide manufacturing capacity by 50%, helping meet the growing demand for EV battery materials produced in the United States.
Lithium Americas announced that, after months of review by the Company, along with its advisors and the Board of Directors, it intends to advance a reorganization that will result in the separation of its North American and Argentine business units into two independent public companies. The Separation will establish two separate companies that include: An Argentina focused lithium company owning Lithium Americas’ current interest in its Argentine lithium assets, including the near-production Caucharí-Olaroz lithium brine project in Jujuy, Argentina and a North America focused lithium company owning the Thacker Pass lithium project in Humboldt County, Nevada and the Company’s North American investments.
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Grounded Lithium Corp. paid three thousand five hundred dollars for advertising and marketing services to be distributed by Winning Media. Winning Media is only compensated for its services in the form of cash-based compensation. Winning Media owns ZERO shares Grounded Lithium Corp. Please click here for disclaimer.
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