The increase in the source is the result of the important work that has been completed by E3 -Lithium Geology and the underground team to improve and increase the understanding of the E3 of the very salty Leduc -water -carrying layer in the Bashaw district. The work included the thorough assessments and analyzes of available core samples, the addition of hundreds of digital wire light logs, 2D -Seismic data, additional brine sample results and an updated interpretation of the Leduc Facies, brine and reservoir properties. This work has advanced the understanding of the reservoir and improved the confidence of the company in the Resource volumes. Based on this analysis, the Resource area is now defined as:
- The combination of the previously published Clearwater and Exshaw Resource areas;
- The expansion of the Resource area with extra surface area of the Bashaw Reef trend (3,033 km 2 of Extra Aquifer) for a new total of 5,931 km 2 .
In addition, E3 has removed the production factor in earlier reports. The cut-off methodology of the production factor that is used in earlier estimates of the resource is considered a “changing factor” and was removed from the updated estimate of the resource in accordance with NI 43-101. The changing factors will be tackled as part of the estimate of the future reserves 2 .
When estimating the current source, a 2% porosity closure was used, so that areas of the water -bearing layer on or below 2% porosity were not included in the total volume used in the calculation of the source. Effective porosity for the intervals above the closure was estimated by applying the average net-to-bruto ratio to measurements of the total porosity available for Petrofysian logs and core. It was also estimated independently by a Petrofysian analysis with the help of shale volume with consistent results. In accordance with the earlier estimates of E3 Lithium, the NI 43-101 Technical report for the Bashaw district will be drawn up and will be submitted to Sedar and the company’s website within 45 days.
The data collected from the current and previously announced E3 drilling program will be included in a possible upgrade of part of the Bashaw District source from “Derived” to “measured and indicated”, as defined by the NI 43-101 2 . This upgrade will largely focus on the Clearwater Project Area, the goal location of the first commercial production facility of E3 Lithium.
Estimate of the mineral source
The estimate of the resource is completed by the multidisciplinary team of E3 and under supervision by E3 Daron Abbey P. Geo and Alex Haluszka P. Geo van Matrix Solutions Inc. Acting as the qualified person (QP) required by National Instrument 43-101 (NI 43-101) Standards 2 . The estimate was completed using volumetric analyzes based on the geological parameters: geometry, porosity, permeability, pressure and lithium concentrations. The estimate of the mineral resources benefited from a considerable amount of data collected by the oil and gas industry and made public by the Alberta government.
Most important data sets used to determine the Pekelpoleters in the Resource area, include drill stem tests (printing, water quality and permeability), core plug -analyzes (porosity and permeability), core book registration and facial description (geometology of the aquosity, boorleline, and boorleline, and boorleline, and boorleline, and boorleline, and boorleline, and boorleline, and boorleline, and boorleline, and boorleline, and and porosity, and boorleline, and boorleline, and boorleline lithium concentration), sampletic analysis (lithium concentration), samplek (lithium concentration), samplek (lithium concentration), sample concentration (lithium concentration), sample concentration (lithium concentration), sampletic analysis (lithium concentration), sampletic) sampletic) (lithium concentration), sample. of hydrocarbons and water (context for aquifered low pressure and continuity).
The concentration of lithium in the consolidated Bashaw district is fairly consistent and evenly distributed over the water -carrying layer ranging from 53.5 mg/l to 93 mg/l lithium, with a P50 value of 74.5 mg/l. Wells included in the sampling program are located in the Bashaw district, concentrated in the Clearwater and Exshaw resource areas (Figure 1). Since 2017, E3 has analyzed a total of 75 brine samples from the BASHAW district. This included samples of 42 individual wells, with 4 or more repeated samples that collected different locations. All analytical results fall within acceptable limits as prescribed by the ISO certified 3 RD Party laboratory and followed strict custody in all sampling programs. The results indicate that lithium concentrations remain stable in a relatively narrow P90 (70.4 mg/l) to P10 (79.9 mg/l) Distribution.
The methodology used to estimate the Resource volumes is as follows:
- Step 1: Calculate the rock volume (area x average net thickness) [5931 km 2 x 193m = 1,146×10 9 m 3 ]
- Step 2: Calculate the total pore volume (net rock volume x estimated effective porosity) [(Step 1) x 6.63%]
- Step 3: Calculate the brine sources volume ((totally effective pore volume – hydrocarbon pore volume) x brine saturation [((Step 2) – (OOIP*+OGIP*)) x 99%]
- Step 4: Calculate the mass of lithium by multiplying the brine volume by the P50 concentration. E3 has called this value the original lithium in place (Olip). [(Step 3) x 74.5 mg/L]
*Ooip: original oil in place, *ogip: original gas in place
Based on the total calculated 59 km 3 From brine volume in an average figure of 74.5 mg/l, the estimate of the mineral resources for the Bashaw district is 4,398,000 tons of LI, which amounts to 23,400,000 tons of lithium carbonate equivalent (LCE) 3 . This estimate of the resources is classified as derived because the geological proof that is sufficient to imply geological, degree or quality continuity, but not to verify. Derived estimates from the mineral resources can be upgraded to indicated and measured mineral source with continuous exploration. E3 Lithium is currently drilling a number of wells that are coming and sampled. Kernen are analyzed for reservoir parameters such as effective porosity. Lithium samples will be collected from different Aquifer intervals and pressure tests in the water -carrying layer will be performed. It is assumed that this additional information will be sufficient to increase parts of the source to indicated and measured in the Bashaw district. At that time, additional analysis and changing factors can be applied to indicated and measured mineral means to categorize mineral reserves.
The company wants to thank its staff and contractors for their diligent and safe work in achieving this important milestone of the company, as well as the collaboration of producing oil and gas partners in its permit areas for the pitch samples.
Daron Abbey P. Geo and Alex Haluszka P. Geo, from Matrix Solutions Inc., QPs are responsible for preparing the technical information regarding the BASHAW District -Bron that is included in this press release and has assessed and approved the use and disclosure of such information in this press release. Daron Abbey And Alex Haluszka are a “qualified person”, as that term is defined in NI 43-101.
E3 Lithium is a development company with a total of 24.3 million tons of lithium carbonate equivalent (LCE) derived mineral resources 1 In Alberta. As set out in the present assessment of E3, the Clearwater Lithium project has an NPV8% of USD 1.1 billion with a 32% IRR before taxes and USD 820 million with a 27% IRR after taxes 1 . Due to the successful scaling up of its DLE technology for commercialization, the goal of E3 Lithium is to produce lithium products with a high purity, battery class. With an important lithium source and innovative technological solutions, E3 Lithium has the potential to market lithium from one of the best areas of law in the world.
On behalf of the Board of Directors
Chris Doornbos President and CEO
E3 Lithium
Foresight and warning statements
This press release includes certain future -oriented statements and the objectives, strategies, beliefs and intentions of management. Further looking statements are often identified by words such as “May”, “Will”, “Plan”, “Expected”, “Anticipate”, “Estimation”, “Intens” and similar words that refer to future events and results. Forward -looking statements are based on the current opinions and expectations of management. All future-oriented information is inherently uncertain and subject to various assumptions, risks and uncertainties, including the speculative character of mineral exploration and development, fluctuating raw materials prices, the effectiveness and feasibility and feasibility of the emergence of lithium extraction technologies that have not yet been tested or proven in more detail in the company attacks Business risk, as described in more details in more details in the business risk, as described in more details in more details in the company. bee www.sedar.com . Actual events or results can vary substantially from those projected in the future -oriented statements and we warn about placing unnecessary dependence on that. We do not have an obligation to revise or update these future -oriented statements, except as required by the applicable legislation.
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Source E3 Lithium Ltd.
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