E3 Lithium Announces 16.0 million tonnes Measured and Indicated Resource Upgrade
E3 Lithium Announces 16.0 million tonnes
Measured and Indicated Resource Upgrade
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.
Figure 1: Map of E3 Lithium's Measured, Indicated and Inferred Resources (CNW Group/E3 Lithium
Ltd.)
"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
(m
3
)
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 resources
1
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-
tax
1
. 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.
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For further information:
E3 Lithium - Investor and Media Relations, Greg Foofat, Manager,
Investor Relations, [email protected], 587-324-2775
CO: E3 Lithium Ltd.
CNW 03:05e 21-MAR-23