LBNK LithiumBank Resources Corp

LithiumBank Resources Corp. (TSX-V: LBNK) (“LithiumBank” or the “Company”) is pleased to announce the commencement of Direct Lithium Extraction (DLE) mineral processing test work on brines from the Company’s Boardwalk Project, located 80 km east of Grande Prairie, AB. LithiumBank has engaged Hatch to assess leading DLE technologies in parallel from the shortlisted DLE technology companies to inform a Preliminary Economic Assessment and subsequent commercial plant design.

Highlights

• Hatch retained to design, test and manage all DLE programs for LithiumBank;
• Selected DLE technologies for testing using Boardwalk brine is underway; and
• Results are expected to be used as inputs to the process design of a facility to treat raw brine and produce battery grade lithium chemical product in the NI 43-101 Preliminary Economic Assessment (PEA).

Hatch is an engineering firm that has expertise in engineering, procurement, and construction management (EPCM) of lithium processing plants. LithiumBank’s management team is working with senior members of Hatch’s lithium group, with recent DLE project experience, to assess DLE technology options for the Boardwalk project. The results of the technology assessment performed by Hatch are expected be used in preparing a NI 43-101 Preliminary Economic Assessment (PEA) in respect of the Boardwalk Project. This PEA is a key steppingstone towards the design of a commercial facility that the Company anticipates will produce battery grade lithium chemical product.

LithiumBank first engaged Hatch in August 2021 to conduct a comparative study of multiple North American based DLE technologies that could deliver a high purity Lithium Chloride (LiCl) concentrate to be used in commercial, battery grade lithium chemical production from the Boardwalk brine. After an iterative process by Hatch, LithiumBank has narrowed the potential technology providers. The shortlisted companies have received brine from Boardwalk and have commenced test work to determine the key design parameters (e.g. selectivity of the lithium extraction media, extraction kinetics, and media longevity). This level of detail in the test work will provide the necessary information to inform preliminary economics around a lithium processing facility on site at Boardwalk.

LithiumBank COO, Kevin Piepgrass states:

“We are very excited to have commenced testing our brine with two of the shortlisted DLE technology companies. Both shortlisted companies have developed DLE materials and extraction processes that the Company believes have an ideal set of ranges of conditions required for peak performance. The temperature, pH, and chemistry at Boardwalk make these technologies ideal candidates and we look forward to receiving the results.”

Brine used in the DLE test work was collected in August 2021 from well 100/09-26-068-22W5/00 located in the South Sturgeon Lake oilfield (see figure 1) and has a reported average grade of 73.8 mg/L Lithium (as previously reported in LithiumBank news release dated June 28, 2022).

The Boardwalk Leduc formation Li-brine inferred resource is globally estimated at 1,122,000 tonnes of elemental Li at an average lithium concentration of 67.1 mg/L Li in 16.7 km3 of formation brine volume (Table 1). The global (total) lithium carbonate equivalent (LCE) for the inferred mineral resource is 5,973,000 tonnes LCE.

Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no guarantee that all or any part of the mineral resource will be converted into a mineral reserve.

Table 1 Boardwalk’s Leduc Formation Li-brine NI 43-101 inferred resource estimate presented as a global (total) resource.

Reporting parameter	Leduc Formation Reef Domain
Aquifer volume	321.99 (km3)
Brine volume	16.72 (km3)
Average lithium concentration	67.1 (mg/L)
Average porosity	5.3 (%)
Average brine in pore space	98.0 (%)
Total elemental lithium resource	1,122,000 (tonnes)
Total lithium carbonate equivalent	5,973,000 tonnes (LCE)

Note

• Information derived from the Company’s technical report entitled “NI 43-101 Technical Report, Inferred Resource Estimate on Lithiumbank Resources Corp.’s Sturgeon Lake Lithium-Brine Property in West-Central Alberta, Canada” with an effective date of May 18, 2021
• Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no guarantee that all or any part of the mineral resource will be converted into a mineral reserve. The estimate of mineral resources may be materially affected by geology, environment, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
• The weights are reported in metric tonnes (1,000 kg or 2,204.6 lbs).
• Tonnage numbers are rounded to the nearest 1,000 unit.
• In a ‘confined’ aquifer (as reported herein), porosity is a proxy for specific yield.
• The resource estimation was completed and reported using a cut-off of 50 mg/L Li.
• In order to describe the resource in terms of industry standard, a conversion factor of 5.323 is used to convert elemental Li to Li2CO3, or Lithium Carbonate Equivalent (LCE).

Qualified Person

Technical information in this news release has been reviewed by Mr. Kevin Piepgrass (Chief Operations Officer, LithiumBank Resources Corp.), who is a Member of the Association of Professional Engineers and Geoscientists of the province of BC (APEGBC) and is a Qualified Person (QP) for the purposes of NI 43 101. Mr. Piepgrass consents to the inclusion of the data in the form and context in which it appears.

About LithiumBank Resources Corp.

LithiumBank Resources Corp. is an exploration and development company focused on lithium-enriched brine projects in Western Canada where low-carbon-impact, rapid DLE technology can be deployed. LithiumBank currently holds over 3.2 million acres of mineral titles, 2.82M acres in Alberta and 326K acres in Saskatchewan. LithiumBank’s mineral titles are strategically positioned over known reservoirs that provide a unique combination of scale, grade and exceptional flow rates that are necessary for a large-scale direct brine lithium production. LithiumBank is advancing and de-risking several projects in parallel of the Boardwalk Lithium Brine Project.

Contact: 

Robert ShewchukCEO & Directorrob@lithiumbank.ca(778) 987-9767

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 release.

Cautionary Statement Regarding Forward Looking Statements

This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, including statements regarding future estimates, plans, objectives, timing, assumptions or expectations of future performance, including without limitation, the statement that the Company intends to complete a Preliminary Economic Assessment study, the expectation that the results of DLE processing testwork may be used as inputs in the process design of a facility to treat raw brine and the anticipated timing for completion of the study and preparation of a Preliminary Economic Assessment are forward-looking statements and contains forward-looking information. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or “occur”. Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release, including that the DLE technologies companies will be able to complete the required testwork and that the Company will be able to complete Preliminary Economic Assessment study and that each can be completed on the anticipated timelines. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Important factors that may cause actual results to vary, include, without limitation, that the DLE study will not be completed on the timelines expected by management or at all, that the results of the DLE study will not be useful in preparation of the Preliminary Economic Assessment study, that Preliminary Economic Assessment study will not be completed on the timelines expected by management or at all. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws.

Figure 1. Map of Boardwalk Lithium Brine Project, West-central Alberta with wells sampled by LithiumBank is available athttps://www.globenewswire.com/NewsRoom/AttachmentNg/be04b66d-c063-4d02-95c9-1524aef69b1a