Resource World Magazine

A P R I L / M A Y 2 0 1 6 www.resourceworld.com 31 LIThIuM Pure eNerGy MINerals prepares for lithium Pea PuRe eneRGY MIneRALs LtD. [PE-TSXV; HMGLF-OTCQB] has been drill- ing wells on its 100%-optioned Clayton Valley South lithium brine project in Esmeralda County about halfway between Las Vegas and Reno, Nevada. Because this is a brine project and not hard rock, the company has to explore in a somewhat different manner. In an interview, Patrick Highsmith, CEO, told Resource World, "We have done this kind of exploration before when I was CEO of Lithium One and built a big brine resource. We have to make use of hydrogeological expertise because the lithium is dissolved in the brine as a lithium chloride. Our COO, Dr. Andy Robinson, is a hydrogeolo- gist and I am a geologist and geochemist." Highsmith explained that the Clayton Valley is a closed basin. The ground and surface waters flow into the basin where the sun evaporates the water and concen- trates the minerals. Therefore, the plan is to drill a well and sample the brines for lithium and other relevant elements. The drilling also enables the determination of the geology and identifies the aquifers as those are the zones that produce the brines. Porosity and permeability are also measured and pumping tests are done. "These steps build a geographic and geometric picture of the resource," said Highsmith. "By applying the lithium con- centrations, a resource can be calculated." To date, an inferred resource of 816,000 tonnes of lithium carbonate equivalent has been defined. "A sizeable resource would be 15,000 to 20,000 tonnes per year," said Highsmith. This means that it won't be necessary delineate more tonnes even though there are more aquifers to be tested – rather, the plan is to upgrade the resource. "Eventually, we will drill some deeper wells." Three wells have been drilled to date and for the upcoming PEA in July another three or four wells are planned. A mini pilot plant will also be built. "We are studying a new method of extracting lithium that does not involve evaporation ponds," said Highsmith. "We are look- ing at a solvent extraction technique that works faster, has higher efficiencies and has been successfully tested in the lab." The company is also assembling an engi- neering team to advance the project. "Since the Capex to build a lithium oper- ation is much lower than a hardrock mine, our plan is to build the plant and mine ourselves – perhaps with a partner," said Highsmith. "We expect to have options on how to finance the development." Pure Energy has an agreement to supply lithium to the tesla Motors Inc. [TSLA- NASDAQ] Gigawatt lithium ion battery factory that happens to be only a 3.5-hour drive away. The lithium product would be trucked to the plant. n

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