CALGARY,
AB, March 21, 2023 /CNW/ - E3 LITHIUM
LTD. (TSXV: ETL) (FSE: OW3) (OTCQX: EEMMF), "E3" or the "Company,"
Alberta's leading lithium
developer and extraction technology innovator, today announced the
upgrade of its mineral resource to Measured and Indicated
(M&I). The mineral resource upgrade includes 6.6 million tonnes
(Mt) of Lithium Carbonate Equivalent (LCE) Measured and 9.4 Mt of
LCE Indicated for a total of 16.0 Mt M&I within its Bashaw
District, outlined in Table 1.
"This resource upgrade is the largest of its kind in
Canada and is significant on a
global scale," said Chris Doornbos,
President and CEO of E3 Lithium. "The amount of data and geological
work required to upgrade resources of this magnitude is significant
and further increases our understanding of the Leduc Aquifer and as
a result, our technical confidence in our commercialization
plans."
Measured & Indicated Upgrade Description
The
upgraded 16.0 Mt of LCE is Canada's largest and one of the largest Direct
Lithium Extraction brine projects and M&I mineral resources
globally. According to Natural Resources Canada, Canada currently has an estimated 3.2 Mt of
M&I lithium resources located in hard rock deposits[1].
To complete this upgrade, E3 used data gathered through its 2022
drill program, ongoing reviews and analyses of core samples and the
development of a comprehensive geological model of the Bashaw
District. This model allows for a more detailed representation of
reservoir properties and leads to a more accurate resource
calculation.
Table 1: E3 Lithium's Measured and Indicated Mineral
Resources
|
Category
|
Location
|
Brine Volume
(m3)
|
Median Lithium
Concentration
|
Contained Lithium
Carbonate Equivalent
|
|
Measured
|
Clearwater
Area
|
4,426,751,508
|
74.5 mg/L
|
1.7 Mt LCE
|
|
Indicated
|
Clearwater
Area
|
6,694,380,000
|
74.5 mg/L
|
2.6 Mt LCE
|
|
Sub
Total
|
Clearwater
Area
|
|
4.3 Mt
LCE
|
|
Measured
|
Remaining Bashaw
District
|
12,212,773,076
|
74.5 mg/L
|
4.9 Mt LCE
|
|
Indicated
|
Remaining Bashaw
District
|
17,021,070,000
|
74.5 mg/L
|
6.8 Mt LCE
|
|
Sub
Total
|
Remaining Bashaw
District
|
|
11.7 Mt
LCE
|
|
|
Total Bashaw
District M&I
|
16.0 Mt
LCE
|
|
___________________________________
|
|
1
https://natural-resources.canada.ca/our-natural-resources/minerals-mining/minerals-metals-facts/lithium-facts/24009
|
The Clearwater Area has been
modified and expanded from previous releases to include a more
representative aerial extent of the likely production zone,
outlined in Figure 1. The resource outlined within this new area
represents the volume contained within the new boundary.
In addition to its M&I resources, E3 has 0.9 Mt of Inferred
LCE in its Rocky Area. Due to the
work required and higher geological confidence provided by
upgrading to M&I, it is common for the resource to decrease in
size as it increases in quality.
Consistent with E3 Lithium's prior resource estimates, the NI
43-101 Technical Report for the Bashaw District is being prepared
and will be filed on SEDAR and the Company's website within 45
days.
Mineral Resource Estimate
The resource estimate was completed by E3's multi-disciplinary
team and overseen by Daron Abbey, P.
Geo and Alex Haluszka, P. Geo of
Matrix Solutions Inc. acting as the Qualified Person (QP) required
by National Instrument 43-101 (NI 43-101) standards[2]. A
3-dimensional geological model was developed using Petrel™, a
resource estimation software used to estimate volumetrics and grade
distribution, to generate an improved understanding of the Leduc
Reservoir in the Company's Bashaw District. The geological model
included the following reservoir characteristics: porosity,
permeability, pressure and lithium concentrations. The 3D
geological model was then utilized to evaluate scenarios of
connected porosity that comprise the resource volume in the model
domain. The mineral resource estimate benefited from a considerable
amount of data collected by E3 over the past six years and compiled
from the oil and gas industry, which is made public as a matter of
normal practice by the Government of Alberta.
Key data sets used to determine aquifer brine parameters in the
resource area, and their contribution to the resource estimate, are
summarized below.
|
Data
Source
|
Contribution to
Resource Estimate
|
|
E3's 2022 Production
Test
|
Pressure validation;
brine analysis; permeability estimation; flow system
continuity
|
|
E3's 2022 Evaluation
Well Program
|
Core analysis porosity
(total & effective), total porosity & permeability
measurements; facies descriptions; downhole wireline logs
(lithology, total & effective porosity); lithium
concentrations
|
|
Public Well Data (logs,
core, drill stem tests)
|
Formation tops, depths,
and thicknesses; facies interpretations; lithology, porosity (total
& effective); permeability measurements
|
|
Historical Production
and Injection Volumes (hydrocarbons and brine)
|
Regional pressure
measurements supporting continuity, rate data supporting
producibility and injectivity
|
|
E3's 2017-2022 Sampling
Programs
|
Lithium
concentrations
|
The concentration of lithium within the consolidated Bashaw
District is relatively consistent laterally and vertically across
the aquifer. E3 has collected sufficient data to demonstrate this
statistically and this information was used to assign lithium grade
in the geological model. The P50 lithium grade value is 74.5 mg/L,
statistically derived from 85 brine samples from the Leduc Aquifer
in the Bashaw District and was applied for both the Measured
and Indicated resources described below. All lithium brine analyses
were completed by an ISO certified 3rd party laboratory and
followed a strict chain of custody process.
|
________________________
|
|
2 NI
43-101 Standards of Disclosure for Mineral Projects, Form 43-101F1
Technical Report and Related Consequential Amendments (cim.org);
cim-definition-standards_2014.pdf
|
The methodology used to estimate the resource volumes using the 3D
geological model is as follows:
|
1.
|
Total Original Lithium
in Place:
|
|
a.
|
Reported brine-filled,
connected pore volume, above a 2% effective porosity cut-off, with
a lithium measurement from 50 equiprobable realizations
|
|
b.
|
Calculated P50 volume
from the above, less the original hydrocarbon pore
volumes
|
|
2.
|
Measured Lithium in
Place:
|
|
a.
|
Reported brine-filled,
connected pore volume, above a 6% effective porosity cut-off, with
a lithium measurement, from 50 equiprobable realizations
|
|
b.
|
Calculated P50 volume
from the above, less the original hydrocarbon pore
volumes
|
|
3.
|
Indicated Lithium in
Place:
|
|
a.
|
The total original
lithium in place, less the measured lithium in place
|
Using the methodology described above, the total Indicated and
Measured resource estimate for the Bashaw District is 3,006,000
tonnes of lithium, which equates to 16,003,000 tonnes of lithium
carbonate equivalent (LCE)[3].
The Indicated portion of the resource is 9,404,000 tonnes LCE
and is classified as indicated due to the evidence being sufficient
to assume geological, grade, and quality continuity between points
of observation. This confidence is sufficient to allow the
application of modifying factors in sufficient detail to support
mine planning and final evaluation of the economic viability of the
resource.
The Measured portion of the resource is 6,598,000 tonnes LCE and
is classified as measured due to the geological evidence being
sufficient to confirm geological, grade and quality continuity
between points of observation. This confidence is sufficient to
allow the application of modifying factors in sufficient detail to
support mine planning and final evaluation of economic viability of
a resource.
Daron Abbey, P. Geo and Alex Haluszka, P. Geo, of Matrix
Solutions Inc., are the QPs responsible for the preparation of the
technical information relating to the Bashaw District resource that
is contained in this news release and have reviewed and approved
the use and disclosure of such information in this news release.
Daron Abbey and Alex Haluszka are Qualified Persons as defined
in NI 43-101.
|
___________________________________
|
|
3 LCE tonnes
= Li tonnes x 5.323
|
About E3 Lithium
E3 Lithium is a development company with a total of 16.0 million
tonnes of lithium carbonate equivalent (LCE) Measured and Indicated
and 0.9 million tonnes LCE Inferred mineral resources1
in Alberta. As outlined in E3's
Preliminary Economic Assessment, the Clearwater Lithium Project has
an NPV8% of USD 1.1 Billion with a
32% IRR pre-tax and USD 820 Million
with a 27% IRR after-tax1. E3 Lithium's goal is to
produce high purity, battery grade lithium products to power the
growing electrical revolution. With a significant lithium resource
and innovative technology solutions, E3 Lithium has the potential
to deliver lithium to market from one of the best jurisdictions in
the world.
ON BEHALF OF THE BOARD OF DIRECTORS
Chris Doornbos, President &
CEO
E3 Lithium Ltd.
1: The Preliminary Economic Assessment (PEA) for the Clearwater
Lithium Project NI 43-101 technical report is effective
Sept 17, 2021. The mineral resource
NI 43-101 Technical Report for the North Rocky Property, effective
October 27, 2017, identified 0.9Mt
LCE (inferred). The mineral resource NI 43-101 Technical Report for
the Bashaw District (measured & indicated) will be available in
April 2023. All reports are available
on the E3 Lithium's website (e3lithium.ca/technical-reports) and
SEDAR (www.sedar.com).
Forward-Looking and Cautionary Statements
This news release includes certain forward-looking statements as
well as management's objectives, strategies, beliefs and
intentions. Forward looking statements are frequently identified by
such words as "may", "will", "plan", "expect", "anticipate",
"estimate", "intend" and similar words referring to future events
and results. Forward-looking statements are based on the current
opinions and expectations of management. All forward-looking
information 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, competitive
risks and the availability of financing, as described in more
detail in our recent securities filings available at www.sedar.com.
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.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE E3 Lithium Ltd.
