Standard Lithium Announces Maiden Inferred Resource of 3,086,000
Tonnes LCE at Southern Arkansas Project
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 9th 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 concentrationMilligrams 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
economic 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 equivalent, 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 underlies
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 porosity 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/cm3, 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
12th 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 m3 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
MethodologyThe resource estimate was completed by
Independent 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 METNETH2O 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 is 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 Securities 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 permeability 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 km2 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 km3, 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 AssuranceThe 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
Company’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 southwestern 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.
On behalf of the Board,
Standard Lithium Ltd.Robert Mintak, CEO &
Director
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. This news release may contain
certain “Forward-Looking Statements” within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and
applicable Canadian securities laws. When used in this news
release, the words “anticipate”, “believe”, “estimate”, “expect”,
“target, “plan”, “forecast”, “may”, “schedule” and other similar
words or expressions identify forward-looking statements or
information. These forward-looking statements or information may
relate to future prices of commodities, accuracy of mineral or
resource exploration activity, reserves or resources, regulatory or
government requirements or approvals, the reliability of third
party information, continued access to mineral properties or
infrastructure, fluctuations in the market for lithium and its
derivatives, changes in exploration costs and government regulation
in Canada and the United States, and other factors or information.
Such statements represent the Company’s current views with respect
to future events and are necessarily based upon a number of
assumptions and estimates that, while considered reasonable by the
Company, are inherently subject to significant business, economic,
competitive, political and social risks, contingencies and
uncertainties. Many factors, both known and unknown, could cause
results, performance or achievements to be materially different
from the results, performance or achievements that are or may be
expressed or implied by such forward-looking statements. The
Company does not intend, and does not assume any obligation, to
update these forward-looking statements or information to reflect
changes in assumptions or changes in circumstances or any other
events affections such statements and information other than as
required by applicable laws, rules and regulations.
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