Lithium Resources Corp. (LBNKF) PEA Technical Report

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dan_s
Posts: 34805
Joined: Fri Apr 23, 2010 8:22 am

Lithium Resources Corp. (LBNKF) PEA Technical Report

Post by dan_s »

This will be the topic of our live webinar on Tuesday, May 30 starting at 10AM CT
You must register on the EPG website to attend this webinar or send an email to Sabrina at energyprospectus@gmail.com

CALGARY, Alberta, May 25, 2023 (GLOBE NEWSWIRE) -- LithiumBank Resources Corp. (TSX-V: LBNK) (OTCQX: LBNKF) (“LithiumBank” or the “Company”) is pleased to announce the highlights from the initial Preliminary Economic Assessment (“PEA”) for the Boardwalk lithium brine project located in west-central Alberta, Canada. The completed NI 43-101 PEA Technical Report will be filed on SEDAR within 45 days of this announcement.

Boardwalk Highlights

31,350 metric tonnes per year of battery grade lithium hydroxide monohydrate (“LHM”)2 over a 20-year period, the largest proposed LHM production in North America

USD $2.7 Billion NPV8 and 21.6% IRR on a pre tax basis

USD $1.7 Billion NPV8 and 17.8% IRR on an after tax basis


OPEX of USD $6,807/tonne LHM

Direct Lithium Extraction (“DLE”) used to process Boardwalk brine will require less fresh water and have a surface footprint that is a fraction of hard rock or evaporation lithium production.

Located in Tier 1 jurisdiction, west-central Alberta, that has a long history of resource extraction, well established infrastructure, and an actively supportive government.

Power to be generated on site using high-efficiency gas turbines with steam cogeneration that will lower the project’s overall carbon footprint. The proposed gas turbine units may be run on 80% hydrogen when a reliable supply is available.

Multiple opportunities to significantly enhance project economics through optimization, further engineering, and pending incentive tax credit.

Project economics used USD $26,000/t LHM and provides strong leverage to higher lithium prices.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34805
Joined: Fri Apr 23, 2010 8:22 am

Re: Lithium Resources Corp. (LBNKF) PEA Technical Report

Post by dan_s »

Analyst note from Noble Capital Markets
LITHIUMBANK RESOURCES
(LBNKF/$0.92 | Price Target: $2.75)

Compelling Boardwalk Preliminary Economic Assessment Provides an Excellent Starting Point
Rating: OUTPERFORM
Friday, May 26, 2023

Initial preliminary economic assessment. LithiumBank Resources released highlights from the initial preliminary economic assessment (PEA) for its Boardwalk lithium brine project in Alberta, Canada. The PEA was based on average annual production of 31,350 tonnes of battery grade lithium hydroxide monohydrate (LHM) over a 20-year period, an average price of US$26,000 per tonne of LHM, operating expense of US$6,807 per tonne LHM, and annual EBITDA of US$586 million. The net present value of the project is estimated at US$2.7 billion on a pre-tax basis and US$1.7 billion on an after-tax basis. The initial capital cost of the project is expected to be US$2.1 billion. The expected payback period is 4.1 years on a pre-tax basis and 4.5 years on an after-tax basis.

An excellent starting point. While the preliminary economic assessment differs in many respects to our own initial assumptions, in many ways it is in the ballpark. Importantly, it compares favorably with preliminary economic assessments of similar projects. Management has identified multiple opportunities to significantly enhance project economics that we think could increase the pre-tax net present value to over US$3.0 billion, including annual EBITDA of US$700 million.

Pilot plant studies. Management expects to use the Boardwalk PEA to expedite completion of a PEA for its nearby Park Place lithium brine project during the second half of 2023. By the end of 2023, LithiumBank expects to commence parallel pilot plant studies on Boardwalk and Park Place.

Rating is Outperform. With numerous catalysts on the horizon, including continued work at Boardwalk along with two other projects with preliminary economic assessments expected to be reported in 2023, LithiumBank is quickly distinguishing itself with an industry-leading portfolio of district-scale North American lithium-rich brine projects.
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I am bullish on the rechargeable battery market and what it means for lithium demand. I am looking at several companies that say they have a process to recover a high percentage of lithium from oilfield brine water that has high concentrations of lithium. There are several large oilfields in Alberta that have been tested and large concentrations of lithium have been confirmed. Small-caps like LBNKF will draw a lot of attention if they can prove that their process to recover lithium can work at a commercial scale.
> Joining me on next Tuesday's webinar will be Kevin Piepgrass, the Chief Operating Officer for LithiumBank.
> He is a University of Alberta Graduate and Professional Geologist, registered at APEGBC. 15 years of experience managing the exploration and development of commodities including gold, silver, copper, lithium and rare earth elements. Mr. Piepgrass is a Qualified Person pursuant to National Instrument 43-101 standards for disclosure for mineral projects.
Dan Steffens
Energy Prospectus Group
farrell90
Posts: 28
Joined: Fri Oct 28, 2011 10:12 pm

Re: Lithium Resources Corp. (LBNKF) PEA Technical Report

Post by farrell90 »

Volt is able to recover LiCL from the oil field brine. Lithium Resources process recovers LiOH which is the form of lithium battery manufactures require. Obviously having the Lithium recovered in the form ready to sell is an advantage.

I do not recall Volt mentioned the conversion would be necessary in their webinar, but they did not go into any detail. Any idea how difficult or expensive the process would be?
farrell90
Posts: 28
Joined: Fri Oct 28, 2011 10:12 pm

Re: Lithium Resources Corp. (LBNKF) PEA Technical Report

Post by farrell90 »

Volt is able to recover LiCL from the oil field brine. Lithium Resources process recovers LiOH which is the form of lithium battery manufactures require. Obviously having the Lithium recovered in the form ready to sell is an advantage.

I do recall Volt mentioned the conversion would be necessary in their webinar, but they did not go into any detail. Any idea how difficult or expensive the process would be?

The market likes the PR from LBNKF with about a 20% increase in share price today.

I am looking forward to the discussion next week.
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