E3 Lithium Outlines Clearwater Project Pre-Feasibility Study and Confirms Lithium Reserves
The completion of the PFS incorporates 12 months of engineering and design work and includes the data and learnings from the successful 2023 Direct Lithium Extraction (DLE)
Highlights of the Pre-feasibility Study:
- Initial production: 32,250 tonnes per annum Lithium Hydroxide Monohydrate (LHM)
-
50-year operating life: covers only a portion of the total
Bashaw District -
Reserves: 1.29 million tonnes (Mt) of LHM Proven & Probable lithium mineral reserve (1.14 Mt Lithium Carbonate Equivalent (LCE)) from the total
Bashaw District of 18.4 Mt of LHM Measured and Indicated mineral resource (16.2 Mt LCE) located in theLeduc Reservoir -
Strong Project Economics:After-tax NPV
$3.72 Billion with a 24.6% IRR at an 8% discount rate (pre-tax NPV8 of$5.18 Billion with a 29.2% IRR) using Benchmark Mineral Intelligence’s (BMI) LHM price forecast -
Initial Capital Expenditure (CAPEX):
$2.47 Billion includes water recycling and contingency -
Initial Operating Costs (OPEX):
$6,200 per tonne LHM provide for a long life and robust project fundamentals - Sustainably produced lithium: Process water for the operation will be sourced from recycling and make-up water from waste brine stream, smaller surface footprint relative to conventional lithium production4 with potential plant emissions of 1.9 tonnes CO2e/tonne LHM.
“The Clearwater Project PFS outlines, for the first time, the viability of lithium from the brines in Alberta,” said
Clearwater Pre-Feasibility Study Technical Details:
The completion of the Pre-Feasibility Study (PFS) is significant milestone for
The completion of the PFS positions the
Clearwater Project Summary
Metric |
Units |
Value |
Initial Production |
Tonnes LHM/year |
32,250 |
Average Production (50-year) |
Tonnes LHM/year |
25,850 |
|
M US$ |
2,465 |
|
M US$ |
1,799 |
Annual Operating Cost (OPEX) |
M US$ |
187 |
Initial Operating Costs (OPEX/tonne) |
US$/tonne |
6,200 |
Average Operating Costs (OPEX/tonne) |
US$/tonne |
7,250 |
Average LHM Price (BMI) |
US$/tonne |
31,344 |
Average Annual EBITDA1 |
M US$ |
531 |
IRR (pre-tax) |
% |
29.2 |
IRR (after-tax) |
% |
24.6 |
NPV8 (pre-tax) |
M US$ |
5,178 |
NPV8 (after tax) |
M US$ |
3,717 |
Payback |
Years |
4.25 |
All prices quoted in this news release are USD unless otherwise stated.
Mineral Resources and Reserves
Bashaw District Mineral Resources2 Original Lithium in Place (OLIP) |
Li (tonnes) |
LCE (tonnes) |
LHM (tonnes) |
TOTAL |
3,046,800 |
16,218,100 |
18,421,000 |
Indicated Mineral Resource |
1,790,500 |
9,530,900 |
10,825,450 |
Measured Mineral Resource |
1,256,300 |
6,687,200 |
7,595,500 |
The Clearwater Project’s Proven and Probable lithium brine mineral reserve is 1.29 Mt LHM (1.13 Mt LCE).
Clearwater Project Reserves3 |
Li (tonnes) |
LCE (tonnes) |
LHM (tonnes) |
TOTAL |
213,750 |
1,137,850 |
1,292,400 |
Proven Reserves – initial 5 years |
26,500 |
141,200 |
160,350 |
Probable Reserves – 6 to 50 years |
187,250 |
996,650 |
1,132,050 |
Clearwater Project’s initial production and nameplate capacity is projected to be 32,250 tonnes of lithium hydroxide per year. The Clearwater has a projected production life of 50 years. Over this time, the lithium grade declines over the 50-year period as mixing occurs within the reservoir drainage pattern. This projection is based on a thorough analysis that informed the creation of a detailed reservoir development plan. Production values were determined based on comprehensive reservoir data, to ensure a solid foundation for future operations.
The mineral reserve estimate uses an average lithium price of
The Lithium Production Process
Extraction Of Lithium Brines
The reservoir drainage model is based on a standard “5-Spot” well network pattern. A total of 38 well pads would produce the required lithium enriched brine: 19 well pads with 4 producing wells and 1 injection well; and 19 well pads with 1 producer and 4 injection wells. The drainage area will have a total of 93 lithium brine producing wells and 93 wells reinjecting the lithium depleted brine. Over time, lithium grade would decline as reinjection brine reaches the production well. Workovers are planned to optimize recovery factor by modifying the well completions. This results in a decline in the production of lithium hydroxide over the 50-year life of the project from 32,250 tonnes LHM per year initially to an average volume of 25,850 tonnes LHM per year.
Brine Production Network: The 38 well pads will be connected via a series of local pipelines to the CPF. These pipelines are underground, similar to oil and gas pipeline networks in
Pretreatment: The pretreatment process for brine from the
Direct Lithium Extraction: Lithium chloride would be extracted from degassed brine through a DLE process using an aluminate-based sorbent in a continuous separation process. This process involves columns cycling across operating modes, controlled by dedicated valves.
The process produces no waste streams and requires no chemical treatment within the DLE process.
Purification and Volume Reduction: The Lithium chloride stream from DLE would then undergo purification and concentration to remove contaminants, reduce volume, and recover water for reuse; this involves filtration, reverse osmosis, nanofiltration, and conventional ion exchange processes. The last step of water reduction involves evaporating with a Mechanical Vapor Recompression (MVR) unit, an energy efficient method. The system deploys a “Zero Liquid Discharge” philosophy that recycles all available received water from the various process steps back into an evaporator to produce purified water for use in the Desorption step of the DLE system.
Conversion to Lithium Compounds: The purified lithium chloride would then be converted into lithium carbonate using a chemical precipitation process. The slurry of lithium carbonate is then converted using a similar process into lithium hydroxide. The final lithium hydroxide stream is crystalized into a salt that can be sold directly into the battery cathode manufacturing process.
The only industrial waste that leaves the CPF is calcium carbonate generated during the production of lithium hydroxide. This product is used in cement and could have a market in
Overall, the processing plant is expected to operate at a lithium recovery of 90.4% and an on-time factor of 92%.
Capital Costs
The upfront capital costs of the
Section |
Installed Cost (US$ 000’s) |
Brine production and brine injection wells |
378,496 |
Brine production and injection pipelines |
448,134 |
Brine Treatment |
448,146 |
Lithium Extraction and Purification Unit |
403,971 |
Lithium Carbonation Unit |
106,803 |
Lithium Hydroxide Unit and packaging |
148,341 |
Chemical Handling |
52,741 |
Site Preparation (Allowance) |
31,095 |
Buildings (Allowance) |
49,751 |
First Fills |
55,970 |
Contingency |
342,028 |
Total CAPEX |
2,465,476 |
Operating Costs
The initial operating costs (OPEX) for the project is projected at$ 6,200/tonne LHM. Over the life of the project, production declines and the average OPEX over the life of the project increases to
Description |
Percentage of Initial Operating Costs |
Well Servicing |
3% |
Pipeline Leak Detection |
<1% |
Maintenance |
12% |
Chemicals and Trucking |
33% |
Power and Natural Gas |
39% |
Waste Disposal |
2% |
Operations Personnel |
9% |
Miscellaneous Cost |
2% |
Total Annual OPEX |
100% |
Infrastructure
Sustainability
Water Usage:
Land Use: Compared to conventional lithium projects, the
Carbon Emissions: The project designs include a natural gas fired co-gen power facility that will both generate the required electricity and the heat (in the form of steam) for the CPF. As part of this,
Technical Report
A technical report in respect of the PFS (Technical Report) will be completed in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101) and will be filed on the Company’s profile on SEDAR+ within 45 days of this news release.
Qualified Persons & Data Verification
The persons who will author the Technical Report include:
The Qualified Persons verified the data that forms the basis of the PFS, including sampling, analytical, and test data.
-
In addition, the Qualified Persons have reviewed the content in the news release that pertains to information on the Company that is not derived from the PFS as set out below:
Daron Abbey M.Sc .,P.Geo andAlex Haluszka M.Sc .,P.Geo verified the data used to estimate the mineral resource volumes, including: E3 Lithium’s 2017-2024 sampling programs (lithium concentrations); historical production and injection volumes of hydrocarbons and brines (regional pressure measurements, rate data); public well data such as logs, core analysis, and drill stem tests which were interpreted to evaluate formation depths and thicknesses, geological facies, lithology, total and effective porosity, and permeability; E3 Lithium’s 2022 evaluation well program including production tests; core analysis for total porosity, effective porosity and permeability; facies descriptions; brine chemical analysis; confirmation of reservoir lithology and pressure. -
Meghan Klein P. Eng verified the data used to estimate the mineral reserve volumes, including: geostatistical static model; dynamic model; reservoir simulation; capital and operating cost estimates; price forecasts; market studies; and economic model. -
Antoine Lefaivre P. Eng verified the data used to validate the mineral processing, recovery methods, and project infrastructure, including: lab and field test results; analytical methods; process calculations; block flow diagrams; process flow calculations; facility design; equipment specifications; and energy, water, and process material requirements. -
Keith Wilson P. Eng verified the data used to validate the environmental studies, permitting, and social/community impact, including: regulatory requirements; CO2e emissions calculations; remediation and reclamation costs.
ON BEHALF OF THE BOARD OF DIRECTORS
About
1: Earnings Before Interest, Taxes, Depreciation, and Amortization
2: Mineral resources are reporting using 2014 CIM Definition Standards, and are inclusive of reserves. Mineral resources have a Reasonable Prospect for Eventual Economic Extraction.
3: Mineral reserves are reported using 2014 CIM Definition Standards, and have demonstrated economic viability.
4: Based on the acreage of
5: The mineral resource NI 43-101 Technical Report for the North Rocky Property, effective
6: The mineral resource NI 43-101 Technical Report for the
Non-IFRS Financial Measures
This news release contains certain performance measures that do not have any standardized meaning prescribed by International Financial Reporting Standards (IFRS) including
Forward-Looking and Cautionary Statements
This news release includes certain forward-looking statements as well as management’s objectives, strategies, beliefs and intentions or forward-looking information within the meaning of applicable Canadian securities laws,. Forward looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend”, “project”, “potential” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations, estimates and assumptions of management. in light of its experience, perception of historical trends, and results of the PFS. In particular, this news release contains forward-looking information relating to: the estimated mineral resources and mineral resources at the
All forward-looking information (including FOFI, as defined below) is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, the effectiveness and feasibility of emerging lithium extraction technologies which have not yet been tested or proven on a commercial scale or on the Company’s brine, risks related to the availability of financing on commercially reasonable terms and the expected use of proceeds; operations and contractual obligations; changes in estimated mineral reserves or mineral resources; future prices of lithium and other metals; availability of third party contractors; availability of equipment; failure of equipment to operate as anticipated; accidents, effects of weather and other natural phenomena and other risks associated with the mineral exploration industry; the Company's lack of operating revenues; currency fluctuations; risks related to dependence on key personnel; estimates used in financial statements proving to be incorrect; competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedarplus.ca. Actual events or results may differ materially from those projected in the forward-looking statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements except as required by applicable law.
FUTURE ORIENTED FINANCIAL INFORMATION
Neither the
The forward-looking information contained in this news release also includes financial outlooks and other forward-looking metrics relating the Company and the
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