E3 METALS CORP. (TSXV: ETMC) (FSE: OU7A) (OTCQX: EEMMF) (the “Company” or “E3 Metals”), an emerging lithium developer and leading direct lithium extraction (“DLE”) technology innovator, is pleased to announce its drilling program to complete up to three lithium evaluation wells in Alberta. These will be the first wells drilled for the specific purpose of evaluating lithium in the province. The wells will be located within the Clearwater Project Area (the “Clearwater”) to determine the optimal location for commercial operations and to upgrade the resource to Measured and Indicated, as defined by NI 43-101.
The evaluation wells will confirm water chemistry, lithium concentrations, and reservoir characteristics. The data collected will be a critical part of the Company’s Aquifer Management Plan (“AMP”). It evaluates the aquifer brine flow and pressure which determine the longevity of brine production for Direct Lithium Extraction. The Company has a total of 7.0Mt LCE of Inferred mineral resources1 in Alberta. The Clearwater Preliminary Economic Assessment1 (“PEA”) has outlined an operation producing 20,000 tonnes of lithium hydroxide per year with a pre-tax NPV (8%) of US$1.1 Billion. The Clearwater Project hosts 2.2Mt LCE of the Company’s 7.0Mt LCE Inferred mineral resources1.
The results from the evaluation wells will be used to determine how E3 Metals will develop the brine production across the Clearwater. They will also assist in the upgrade of the Company’s Clearwater resource to Measured and Indicated. This will provide E3 Metals with a clear and defined area for its first commercial lithium production zone within the Clearwater. The resource upgrade will be the basis for producing a prefeasibility study and booking western Canada’s first lithium reserve.
With a clear path now defined under newly passed Bill 82, regulatory oversight for lithium is in the jurisdiction of the Alberta Energy Regulator (“AER”). The AER oversees the energy industry in the province. Given the operational similarities between conventional hydrocarbon production and lithium production in Alberta, E3 Metals is pleased to be working with the AER on these permits. E3 Metals is in the process of applying for the necessary well licences required for the drill program.
“The wells we plan on drilling into the Leduc Aquifer in the Clearwater Project will the first ever lithium evaluation wells in Alberta,” commented CEO, Chris Doornbos. “The true benefit is the 70 years of drilling experience into this aquifer and the data that has come along with it. The long history of exploring and exploiting this aquifer in Alberta, since its discovery by Imperial Oil in 1947, has provided E3 Metals a massive advantage on our development plans. These new wells will be used to evaluate the Company’s commercial brine production zone and future expansion plans in the area.”
