E3 Lithium Outlines Clearwater Project Pre-Feasibility Study and Confirms Lithium Reserves
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E3 Lithium Outlines Clearwater Project Pre-Feasibility Study and
Confirms Lithium Reserves
CALGARY, ALBERTA, June 26, 2024 – E3 LITHIUM LTD. (TSXV: ETL) (FSE: OW3) (OTCQX: EEMMF), “E3
Lithium” or the “Company,” a leader in Canadian lithium, is pleased to announce the summary of key results
from the Pre-Feasibility Study (“PFS”) for its Clearwater Project, located in south-central Alberta. The PFS
outlines the Clearwater Project's economic viability, environmental sustainability and long-term operational
potential, and reports Canada's first lithium-in-brine proven mineral reserve.
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) Field Pilot Plant, as well as the in-
house verification testing. The detailed flow sheet outlines a lithium chloride produced from a DLE system
and further purified and concentrated. A two-stage chemical conversion process first produces lithium
carbonate and then battery quality lithium hydroxide. Critical to sustainability is implementing practices to
minimize environmental impact associated with lithium production.
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 the Leduc 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): $6,200 per tonne LHM provide for a long life and robust project
fundamentals
• Sustainably produced lithium: Process water for the operation will be sourced from recycling and
make-up water from waste brine stream, smaller surface footprint relative to conventional lithium
production4 with potential plant emissions of 1.9 tonnes CO2e/tonne LHM.
“The Clearwater Project PFS outlines, for the first time, the viability of lithium from the brines in Alberta,”
said Chris Doornbos, President and CEO of E3 Lithium. “This report signifies a fundamental shift for E3
Lithium, setting us on a clear pathway to commercial development and positions the Clearwater Project and
Bashaw District as a strategic lithium asset in Canada and North America. I want to thank the entire team
for their outstanding effort in completing this major company milestone and demonstrating the potential of
how sustainable lithium can be produced.”
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Clearwater Pre-Feasibility Study Technical Details:
The completion of the Pre-Feasibility Study (PFS) is significant milestone for E3 Lithium. The PFS outlines
the detailed process to produce battery grade lithium hydroxide and reports the first lithium brine proven
mineral reserves in Canada. The PFS was completed by Sproule Associates Limited, Matrix Solutions Inc,
Sedgman Canada Ltd and Stantec Inc.
The completion of the PFS positions the Clearwater Project as a sustainable source of lithium in the stable
and reliable jurisdiction of Alberta.
Clearwater Project Summary
Metric Units Value
Initial Production Tonnes LHM/year 32,250
Average Production (50-year) Tonnes LHM/year 25,850
Total Initial Capital (CAPEX) M US$ 2,465
Total Sustaining & Abandonment Capital 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
The Bashaw District includes an updated 18.4 Mt LHM (16.2 Mt LCE) Measured and Indic ated mineral
resource estimate, leveraging the same methodology as described in E3’s news release dated March 21, 2023.
Additional lithium grade sampling results modified the P50 grade concentration to 75.5 mg/L, resulting in an
increase in the total estimated resource volume.
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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).
The Clearwater Project mineral reserve is contained within the Bashaw District Measured and Indicated
lithium mineral resource, totaling 18.4 Mt LHM (16.2 Mt LCE). Measured resource estimates can be converted
to proven or probable reserve estimates, and indicated resource estimates can be converted to probable
reserves estimates.
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 $31,344 per tonne LHM, and uses negative
cash flow as the economic cut-off, which was not realized within the 50-year production life of the project.
The total reserve volumes account for 38% of the mineral resource volume within the project area. Capital
cost estimates used industry standard estimating practices for a Class 4 estimate. Operating cost
estimates were compiled using vendor and engineering data.
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The Lithium Production Process
Extraction Of Lithium Brines
The Leduc Reservoir is a well understood ancient reef complex that has exceptional flow rates and
deliverability due to favourable rock properties and pressure. A geologic model and subsequent reservoir
production model were completed to provide estimates on the brine volume, lithium concentration and
producible brine across the Bashaw District. These models were further used to develop the production plan
that provided the wells, layout and volumes to be delivered to the Central Process Facility (CPF).
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 Alberta.
Pretreatment: The pretreatment process for brine from the Clearwater area will involve receiving the brine
at 70°C and 800 kPa. The water/gas mixture is depressurized to release about 80% of dissolved gas, mainly
H₂S. The majority of the remaining gas is captured in a Vapour Recovery Unit in the holding tank. The
entrained gases are collected from the brine and re-injected into another reservoir that has no economic
value. The brine’s low total suspended solids are expected to be less than 350 mg/L, which would eliminate
the need for filtration before DLE.
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
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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 Alberta or elsewhere. While
the PFS has assumed this would be disposed of, there is potential this calcium carbonate can be sold,
thereby adding a secondary revenue stream and eliminating all external waste.
Overall, the processing plant is expected to operate at a lithium recovery of 90.4% and an on-time factor of
92%.
Lithium Packaging: The dried lithium hydroxide will be screened and transferred to storage silos through a
CO2-free system, packaged in bulk bags via automated stations, and then conveyed to the loading station
for storage and transportation.
Capital Costs
The upfront capital costs of the Clearwater Project assume an initial production and nameplate capacity of
32,250 tonnes LHM per year are $2.47 B and are inclusive of the wells, pipelines, processing facility and
include 10% contingency on the wells and pipelines and 20% contingency on the plant infrastructure. It does
not include the capital for the power generation of carbon sequestration, which has been planned to be built
by a 3rd party power provider locally in Alberta where the costs are incorporated into the operating costs for
the price of power.
Section Installed Cost (US$ 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 $ 7,250/tonne
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LHM. The all-in average OPEX, including sustaining and abandonment capital, over the life of the project is
projected at $8,250/tonne LHM.
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
The Clearwater Project will be strategically located within an approximate 10km radius of essential
infrastructure, including power and roads, to minimize the expenses related to infrastructure development.
Extended infrastructure, such as railway and natural gas, are within approximately 25km of the site. The
project is within 2km of a major highway which ensures year-round access and convenient equipment
delivery while providing local stimulus and access for staff from nearby towns and cities and eliminating
the need for remote camps.
Sustainability
E3 Lithium is committed to environmental sustainability and is developing processes that aim to make the
Clearwater Project as sustainable as possible, ensuring the plant operates with minimal environmental
impact.
Water Usage: E3 Lithium addresses the consumption of water by deploying advanced filtration and
membrane technologies such as Nanofiltration (NF) and Reverse Osmosis (RO) to enhance water recovery
in the extraction and refining process. E3 Lithium is also implementing Zero Liquid Discharge (ZLD), which
means all process-affected water generated from these systems is recycled back to the process water
storage tank. Any additional make-up water required will be sourced from the lithium depleted brine and all
of this will be evaporated and condensed using industrial processes to produce purified water, mainly for
use in the Desorption process. The ZLD philosophy ensures no liquid waste is released, maximizing water
reuse. It also means that once in operation, E3 Lithium should not need to source any water from the
environment to make their lithium products.
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Land Use: Compared to conventional lithium projects, the Clearwater Project seeks to minimize its
environmental footprint by occupying a small portion of land. After construction of the well pads and the
pipelines, the majority of the disturbance is reclaimed to its original use immediately. Between the 38 well
pads and the CPF, E3 Lithium will use only 10% land relative to a hard rock mine and 4% relative to an
evaporative salar4. At the end of the project, the Company will aim for 100% reclamation of the project site.
There are no planned tailings.
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, E3 Lithium
plans to capture the carbon dioxide from the exhaust gas of the power plant and sequester it, supported by
recent policy put in place by the Alberta government. If implemented, the carbon emissions from the plant
site operations would be an estimated 1.9 tonnes CO2e/tonnes LHM.
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: Daron Abbey, M.Sc., P. Geo of Matrix Solutions
Inc; Alex Haluszka, M. Sc., P. Geo of Matrix Solutions Inc; Meghan Klein, P. Eng, of Sproule Associates
Limited; Antoine Lefaivre, P. Eng, of Sedgman; and Keith Wilson, P. Eng., of Stantec Inc, each of whom is a
“qualified person” as defined under NI43-101 (collectively, the Qualified Persons). Each of the Qualified
Persons prepared or supervised the preparation of the information that forms the basis of the PFS that is
included in the news release. Each of the Qualified Persons has reviewed and approved the technical
information in this news release within their area of expertise and are independent of E3 Lithium.
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 and Alex 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.
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- 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
Chris Doornbos, President & CEO
E3 Lithium Ltd.
E3 Lithium - Investor and Media Relations
Alexis de la Renaudiere
Investor Relations
587-324-2775
About E3 Lithium
E3 Lithium is a development company with a total of 16.2 million tonnes of lithium carbonate equivalent
(LCE) Measured and Indicated as well as 0.9 million tonnes LCE Inferred mineral resources5 in Alberta and
2.5 million tonnes LCE Inferred mineral resources6 in Saskatchewan. As outlined in E3 Lithium’s Pre-
Feasibility Study News Release dated June 26, 2024, the Clearwater Project has a pre-tax NPV8% of USD 5.2
Billion with a 29.2% IRR and an after-tax NPV8% of USD 3.7 Billion with a 24.6% IRR. 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.
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. Daron Abbey, P. Geo and
Alex Haluska, P. Geo, of Matrix Solutions Inc., are Qualified Persons as defined in NI43-101, and are
responsible for the preparation of the technical information relating to the Bashaw District mineral resource
that is contained in this news release, with an effective date of June 20th, 2024. Daron Abbey and Alex
Haluszka have reviewed and approved the use and disclosure of such information in this news release.
3: Mineral reserves are reported using 2014 CIM Definition Standards, and have demonstrated economic
viability. Meghan Klein, P. Eng of Sproule Associates Limited, is a Qualified Person as defined in NI43-101,
and is responsible for the preparation of the technical information relating to the Clearwater Project mineral
reserve and economic analysis that is contained in this news release, with an effective date of June 20th,
2024. Meghan Klein has reviewed and approved the use and disclosure of such information in this news
release.