Grounded Lithium Announces Commencement of 2024 Field Program and Selection of Stantec as Lead Author for Pre-Feasibility Study
Grounded Lithium Announces Commencement of 2024 Field Program and
Selection of Stantec as Lead Author for Pre-Feasibility Study
CALGARY, AB
,
Nov. 4, 2024
/CNW/ - (TSXV: GRD) (OTCQB: GRDAF) – Grounded Lithium Corp. ("
GLC
" or the "
Company
") announces commencement of the
2024 field program together with initiation of the Pre-Feasibility Study ("
PFS
") authored by Stantec Inc. ("
Stantec
"), a leading global engineering and consulting
firm, as lead author for the Kindersley Lithium Project ("
KLP
") in accordance with Canadian Securities Administrators National Instrument 43-101 ("
NI 43-101
").
"We are excited to begin executing renewed activity on the KLP stemming from the recently announced project budget approved by Denison Mines Corp.
("
Denison
"), commented
Gregg Smith
, President and CEO. "The budget is fully funded by Denison and dedicates
$4.5 million
to various key activities including
advancing detailed analysis on the reservoir through a rigorous field program supporting a future PFS to meaningfully advance the evaluation of the KLP."
The 2024 KLP field program is highlighted by the following:
Re-entry of dedicated lithium well
Originally drilled in 2022 as a dedicated lithium well 20 kilometers north of Kindersley,
Saskatchewan
(the "
4-15 Well
"), the 4-15 Well was re-opened
(see picture below) and will be deepened by approximately 100 metres;
Extensive production evaluation testing is planned to be conducted over 11 separate 20-metre stratigraphic intervals within the Duperow formation to
determine flow capacity and brine analysis for lithium and ion concentrations for the individual zones; and
A significant volume of brine is expected to be captured to support several planned lithium extraction technology lab pilot tests (discussed below).
Figure 1 – 4-15 Well Picture Taken November 3, 2024 (CNW Group/Grounded Lithium Corp.)
Depletion model data collection
Interval testing is intended to collect pressure data, among other factors, critical in developing a fulsome depletion model to guide future efforts related to
well placement, reservoir maintenance, and general field operations for the KLP.
Lab pilot performance test work:
Brine samples are planned to be delivered to a number of leading lithium extraction and processing companies to perform extensive lab pilots to evaluate
optimal metallurgical design and performance;
The evaluation of new lithium extraction technologies with encouraging bench scale results are expected to be included in this process along with
established technologies; and
The PFS is expected to base its economic and commercial conclusions on the recommended technology determined from this assessment.
Initiation of PFS
The combined efforts from the field work and technology assessments are expected to support the completion of a future PFS in accordance with National
Instrument 43-101. Denison assumed the lead in the selection of the parties to prepare the PFS and we are pleased to announce that Stantec has been awarded
that contract. Stantec is a global leader in sustainable engineering, architecture, and environmental consulting who bring a breadth of expertise from their mining,
minerals and metals team to the KLP. Subject to the successful completion of the planned field and lab programs, the PFS is currently targeted for completion in
mid-2025.
About Grounded Lithium Corp.
GLC is a publicly traded lithium brine exploration and development company that owns approximately 1.0 million metric tonnes of Measured & Indicated lithium
carbonate equivalent mineral resource and approximately 3.2 million metric tonnes of Inferred lithium carbonate equivalent resource over our focused land holdings
in
Southwest Saskatchewan
as per the Company's updated PEA. The updated PEA, titled "
NI 43-101 Technical Report: Preliminary Economic Assessment
Kindersley Lithium Project – Phase 1 Update
" dated
November 7, 2023
and effective as of
June 30, 2023
, reports a Phase 1 NPV
8
after-tax of
US$1.0 billion
with an after-tax IRR of 48.5%. In January 2024, GLC entered into an agreement with Denison whereby Denison has the option to earn up to a 75% working
interest in the KLP by funding in aggregate up to
$15,150,000
comprised of both cash payments to GLC of up to
$3,150,000
and funding project expenditures of
up to
$12,000,000
through a structured earn-in option.
GLC's multi-faceted business model involves the consolidation, delineation, exploitation and ultimately development of our opportunity base to fulfill our vision to
build a best-in-class, environmentally responsible, Canadian lithium producer supporting the global energy transition shift. U.S. investors can find current financial
disclosure and Real-Time Level 2 quotes for the Company on
https://www.otcmarkets.com/
.
Qualified Person
Scientific and technical information contained in this press release has been prepared under the supervision of
Doug Ashton
, P.Eng.,
Alexey Romanov
, P. Geo.,
Meghan Klein
, P. Eng.,
Dean Quirk
, P.Eng.,
Jeffrey Weiss
, P.Eng.,
Chad Hitchings
., P.L. Eng., and
Michael Munteanu
, P.Eng., each of whom is a qualified person
within the meaning of NI 43-101.
Forward-Looking Statements
This press release may contain forward-looking statements and forward-looking information within the meaning of applicable Canadian securities laws. The
opinions, forecasts, projections and statements about future events of results, are forward looking information, forward-looking statements or financial outlooks
(collectively, "
forward-looking statements
") under the meaning of applicable Canadian securities laws. These statements are made as of the date of this press
release and the fact that this press release remains available does not constitute a representation by GLC that the Company believes these forward-looking
statements continue to be true as of any subsequent date. Although GLC believes that the assumptions underlying, and expectations reflected in, these forward-
looking statements are reasonable, it can give no assurance that these assumptions and expectations will prove to be correct. Such statements include, but are
not limited to, statements pertaining to: the execution of renewed activity on the KLP; the Budget and estimated costs of activities at the KLP; conducting analysis
on the KLP reservoir through a field program and the ability of such analysis to support a PFS to advance the further evaluation of the KLP; field and lab
programs, including the advancement and completion of a dedicated lithium well, depletion model data collection, and lab pilot performance test work; deepening
the 4-15 Well; production evaluation testing being conducted within the Duperow formation; expectations regarding the volume of brine to be captured and the
ability thereof to support pilot tests; the collection of pressure data through interval testing; the development of a depletion model to guide well placement,
reservoir maintenance, and general field operations; the delivery of brine samples to third parties and the performance of lab pilots by such third parties; the
testing and evaluation of lithium extraction technologies and the results thereof; the outcome of the PFS, including the expectation that the PFS will base its
conclusions on the recommended technology determined from lab pilots and test work; the completion of a future PFS in respect of the KLP and the expected
timing thereof; the funding of project expenditures by Denison and the quantum thereof; Denison earning into subsequent phases under its earn-in agreement with
GLC; Denison remitting cash payments to the Company and the quantum thereof; and GLC's vision of becoming a best-in-class, environmentally responsible,
Canadian lithium producer supporting the global energy transition shift.
Among the important factors, risks, uncertainties and assumptions that could cause actual results to differ materially from those indicated by such forward-looking
statements are: GLC's expectation that our operations will be in
Western Canada
, unexpected problems can arise due to technical difficulties and operational
difficulties which impact the production, transport or sale of our products; geographic and weather conditions can impact the production; the risk that current
global economic and credit conditions may impact commodity prices and consumption more than GLC currently predicts; the failure to obtain financing on
reasonable terms; the risk that unexpected delays and difficulties in developing currently owned properties may occur; the failure of drilling to result in commercial
projects; unexpected delays due to the limited availability of drilling equipment and personnel; Denison electing to fund project expenditures; the costs associated
with, and outcome of, field programs, lab pilots and the PFS; and the other risk factors detailed from time to time in GLC's periodic reports. GLC's forward-
looking statements are expressly qualified in their entirety by this cautionary statement.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.
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 news release.
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For further information:
For more information, please contact: Gregg Smith, President & CEO; Greg Phaneuf, SVP Corporate Development & CFO, Phone:
587.319.6220, Email:
CO: Grounded Lithium Corp.
CNW 07:00e 04-NOV-24