Standard Lithium Announces Maiden Inferred Resource of 3,086,000 Tonnes LCE at Southern Arkansas Project
STANDARD LITHIUM ANNOUNCES MAIDEN INFERRED RESOURCE OF
3,086,000 TONNES LCE AT SOUTHERN ARKANSAS PROJECT
Vancouver, BC November 14, 2018 – Standard Lithium Ltd. (“Standard Lithium” or the
“Company”) (TSXV: SLL) (OTCQX: STLHF) (FRA: S5L), is pleased to report a maiden lithium
resource statement for its 150,000 acre Project in the south-central region of Arkansas, USA
(the “Property”; see Company news release 9 th May 2018 ). The maiden resource report,
detailed in Table 1 below, includes 3,086,000 metric tonnes of lithium carbonate equivalent
(LCE) at the Inferred Resource category (see notes [4] and [5] below).
Table 1 – South Arkansas Lithium Brine Project Inferred Resource Statement
Parameter South Unit Central Unit West Unit Total
Aquifer Volume (km3) 5.83 8.29 16.31 30.43
Brine Volume (km3) 0.689 0.995 1.84 3.52
Average Li concentration
Milligrams per litre (mg/L) 165 mg/L
Average Porosity 11.8 % 12.0 % 11.2 % 11.6 %
Total Li resource (as
metal) metric tonnes
(see notes [4] & [5] below)
114,000 164,000 303,000 580,000
Total LCE resource
(metric tonnes)
(see notes [4] & [5] below)
605,000 873,000 1,610,000 3,086,000
Notes:
[1] Mineral resources are not mineral reserves and do not have demonstrated e conomic viability.
There is no guarantee that all or any part of the mineral resource will be converted into a mineral reserve.
[2] Numbers may not add up due to rounding.
[3] The resource estimate was completed and reported using a cut-off of 50 mg/L lithium.
[4] The resource estimate was developed and classified in accordance with guidelines established
by the Canadian Institute of Mining and Metallurgy. The associated Technical Report was completed in
accordance with the Canadian Securities Administration’s National Instrument 43-101 and all associated
documents and amendments. As per these guidelines, the resource was estimated in terms of metallic
(or elemental) lithium.
[5] In order to describe the resource in terms of ‘industry standard’ lithium carbonate eq uivalent, a
conversion factor of 5.323 was used to convert elemental lithium to LCE.
The lithium brine Inferred Resource, as reported, is contained within the Reynolds Member of
the Smackover Formation, a Late Jurassic oolitic limestone aquifer that under lies the entire
Property. This brine resource is in current commercial production for the purpose of recovering
bromine from the brine . The bulk of the numerical data used to model the resource were
gathered from a network of existing production and disposal wells distributed across the
Property. Abundant data demonstrate that the Reynolds Member is present across the entirety
of the Property, and that it is not affected by faulting.
The resource is defined across a total footprint of approximately 150,000 acres, or 775 km2,
which is comprised of over 10,000 separate brine leases. The total lease area is separated into
three specific areas, or ‘Units’, that each function as standalone brine production, processing
and reinjection operations. The commercial extraction of bromine from brines sourced from the
Reynolds Member aquifer commenced in the late 1950’s and is currently ongoing. The depth,
shape, thickness and lateral extent of the Reynolds Member was mapped out using data from
699 wells that penetrated the top of the aquifer; 198 wells that penetrated the base of the
aquifer; and 620 km of proprietary 2D seismic data. Thirty-one of the wells had full downhole
geophysical logs, including detailed density and/or porosity data throughout the Reynolds
Member. Detailed poro sity and permeability data were gathered from core-plug samples taken
from 17 active brine supply and reinjection wells distributed across the Property. In total, data
from 2,329 core plugs , as well as 14,314 measurements from downhole geophysical logs were
used to define the effective porosity distribution throughout the Reynolds Member aquifer.
Current representative in-situ brine geochemistry was assessed by taking samples , on two
separate occasions, from 24 (of the 26 total) brine production wells across the Property. Lithium
concentrations in brine at the wellheads ranged from 53 mg/L to a maximum recorded
concentration of 292 mg/L. Spatial variations in lithium concentration across the Property were
observed, but a conservative average in -situ concentration of 165 mg/L was used for resource
calculation. Brine at the wellheads typically had a density of approximately 1.17 g/cm 3, and a
temperature of 65 °C.
Samples were also taken at the three separate bromine extraction plants (one at each of the
‘Units’); at the point where the brine streams from the brine production wells are amalgamated
prior to bromine extraction (“feed brine”), and at the point where the bromine-free brine is ready
to be reinjected back into the Smackover Formation (“tailbrine”). These data show that, during
the period of sampling, the highest ‘blended’ lithium concentration was found at the South Plant
(which processes brine pumped from the South Unit), with a measured feed brine containing
between 191-200 mg/L Li. The South Plant is the location chosen for Standard Lithium’ s Pilot
Plant (see previous news release dated 12 th September 2018). Sample quality assurance and
quality control was maintained throughout by use of blanks, duplicates, standard ‘spikes’, and
by using an accredited laboratory, with a long history of analysing very high salinity lithium
brines.
Brine production at the Property is ongoing, and based on publicly available data for the period
January 2013 to December 2017, an average volume of approximately 126 million barrels of
brine per year (20 million m 3 per year), were pumped, processed for bromine and reinjected
across the Property. This corresponds to an average amalgamated flow rate of approximately
636 litres/second, or 10,076 gallons per minute. To put these figures into context, the total brine
resource beneath the Property is calculated to be 3.52 cubic kilometres, whereas the average
annual pumping rate is approximately 0.02 cubic kilometres, meaning that only 0.57% (approx.)
on average of the resource is processed (for bromine) per annum.
"Our development strategy has been data-driven from the outset; our disciplined approach has
been validated by this robust mineral resource estimate that is fully in-line with the due diligence
we conducted” said Dr. Andy Robinson, President and COO of Standard Lithium.
Resource Estimation Methodology
The resource estimate was completed by I ndependent qualified person (QP) Mr. Roy Eccles
M.Sc. P.Geol. of APEX Geoscience Ltd., assisted by other Independent QP’s; Mr. Warren Black
M.Sc. P.Geo. of APEX Geoscience Ltd. (resource modelling), Mr. Kevin Hill B.Sc. P.Geo. Hill
Geophysical Consulting (geology), Dr. Ron Molnar Ph.D. P.Eng. of M ETNETH2O Inc.
(processing), and Mr. Kaush Rakhit M.Sc. P.Geol. of Canadian Discovery Ltd (hydrogeology).
The resource estimate of the lithium brine at the Lanxess Property i s classified as an “Inferred”
Mineral Resource, and was developed and classified in accordance with guidelines established
by the Canadian Institute of Mining and Metallurgy. The associated Technical Report was
completed in accordance with the Canadian Se curities Administration’s National Instrument 43-
101 and all associated documents and amendments.
Owing to the abundance of data available to the QPs responsible for resource assessment, it
was decided to use a more robust 3D block modelling approach using the MICROMINE v18.0
software to model the porosity distribution across the Property. The data available to the
authors of the Inferred Resource report included:
• 3,412 wells that had been drilled in the general Property area, including 1,004 wells that
were deep enough (>2,135 m deep) to intercept the Smackover Formation/Reynolds
Member;
• 699 wells with electric logs within the Property that went into the top of the Smackover,
and 198 wells that had electric logs that fully penetrated the base of the Reynolds
Member of the Smackover Formation (the brine resource, as estimated for this Property
is only considered for the geologically and hydrogeologically distinct Reynolds Member);
• 36 wells that had density and/or porosity logs for the Reynolds Member;
• 620 km of proprietary 2D seismic data;
• 62 current brine assays representative of in-situ brine composition;
• 1,935 historical Smackover Formation core samples that yielded an average effective
porosity of 14.3%;
• Historical perm eability data that varied from < 0.01 to >5,000 millidarcies (mD) with an
average of 338 mD;
• 2,329 proprietary core plug samples from supply and reinjection wells across the
Property, which yielded an average permeability of 202 mD and effective porosity of
11.2%; and,
• 14,314 total porosity values from the Reynolds Member based on publicly available logs,
with an average porosity of 11.3%.
The block model for the Reynolds Member across the 775 km 2 extent of the Property was
compiled using blocks measuring 183 m × 183 m across, and a thickness of 0.61 m. The model
resulted in a total volume of Reynolds Member aquifer beneath the Property of 30.43 km 3, with
an average global block model porosity of 11.6%. Using average in -situ brine grade beneath
the Property of 165 mg/L yielded a lithium resource of approximately 580,000 tonnes of lithium
(reported as elemental lithium), or just over 3 million tonnes LCE, assuming that all effective
porosity is filled with brine. This block model approach is felt by the primary author to be a
rigorous and conservative approach, and produces a robust and defensible Inferred Resource
estimate. A Technical Report describing this resource estimation, and prepared under the NI43-
101 guidelines, will be filed on Standard Lithium’s SEDAR page with 45 days of this release.
“The release of this first resource report is a significant milestone for the Company and shows
that the South Arkansas Project is one of the most interesting emerging lithium brine projects
globally” commented Robert Mintak, Standard Lithium CEO. “The combination of robust data
sampled from existing brine production wells, with a large land package of 150,000 acres and
associated infrastructure, makes our South Arkansas Project a compelling opportunity. A
second resource report on 30,000 acres of separate brine leases in Southwest Arkansas will
follow this report before the end of the year.”
Quality Assurance
The resource evaluation report was completed by the Independent Qualified Persons as
described above, with Roy Eccles P. Geol. as the lead author. Raymond Spanjers, Registered
Professional Geologist (SME No. 3041730), is a qualified person as defined by NI 43-101, and
has supervised the preparation of the scientific and technical information that forms the basis for
this news release. Mr. Spanjers is not independent of the Company as he is an officer in his
role as Vice President, Exploration and Development.
About Standard Lithium Ltd.
The C ompany’s flagship Project is located in southern Arkansas, where it is engaged in the
testing and proving of the commercial viability of lithium extraction from over 150,000 acres of
permitted brine operations utilising the Company’s proprietary selective extraction technology.
The Company is also pursuing the resource development of over 30,000 acres of separate brine
leases located in south western Arkansas and approximately 45,000 acres of mineral leases
located in the Mojave Desert in San Bernardino County, California.
Standard Lithium is listed on the TSX Venture Exchange under the trading symbol “SLL”;
quoted on the OTC - Nasdaq Intl Designation under the symbol “STLHF”; and on the Frankfurt
Stock Exchange under the symbol “S5L”. Please visit the Company’s website at
www.standardlithium.com.
For further information, contact Anthony Alvaro at (604) 240 4793
On behalf of the Board,
Standard Lithium Ltd.
Robert Mintak, CEO & Director
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