Grounded Lithium Achieves Milestone with 2024 Field Program
Grounded Lithium Corp. (TSXV: GRD, OTCQB: GRDAF) proudly announces the successful completion of its field program for 2024 at the Kindersley Lithium Project (KLP). This achievement comes as a significant component of their ongoing Pre-Feasibility Study (PFS), reinforcing the company's commitment to advancing lithium extraction methodologies.
Collaboration with Denison Mines Corp.
The completion of this field program was in collaboration with Denison Mines Corp., a strategic partner dedicated to enhancing the success of the KLP. The team strategized, re-entering the original 4-15-33-23W3 well (the "4-15 Well") and extending its depth to achieve specific goals. Alongside this, comprehensive metallurgical testing has been initiated to ensure a high level of commercial confidence in the upcoming PFS. This strategic approach sets the stage for a meticulously designed PFS, aimed at completion in the foreseeable future.
Insights from the Field Program
Gregg Smith, President and CEO of Grounded Lithium, expressed satisfaction regarding the program's completion. He noted, "The detailed information gained from this program greatly assists in the understanding of the Duperow formation and fosters our progression toward a comprehensive PFS with robust technical studies." This insight is critical for determining the feasibility of large-scale lithium extraction.
Results of the 4-15 Field Program
The 4-15 Well was not only re-entered but also deepened by an impressive 100 meters. During this time, testing for lithium concentrations and flow rates took place across various intervals in the Duperow formation, including newly accessible layers. This expansion and deepening have confirmed previous understandings while identifying additional areas for extracting brine, which is essential for future metallurgical testing.
Key Technical Highlights from the Program
- 83 cubic meters, or 525 barrels, of bulk brine samples were gathered.
- Eleven intervals within the Duperow formation were tested to assess flow capabilities and lithium concentrations, with results sent to independent laboratories.
- The tests yielded lithium concentration results from previously examined zones at 76.5 milligrams/liter.
- New findings from the lower zone of the Duperow formation revealed lithium brine concentrations at 66 milligrams/liter, expanding the deliverability potential of KLP.
- Direct lithium extraction testing is underway, evaluating the brines from the field program across multiple independent extraction labs.
- 3D reservoir depletion modelling is ongoing, utilizing the new data to inform production models, well patterns, and site infrastructure layouts.
About Grounded Lithium Corp.
Grounded Lithium operates as a publicly traded exploration and development firm within the lithium brine sector. The company boasts approximately 1.0 million metric tonnes of Measured and Indicated lithium carbonate equivalent mineral resources and around 3.2 million metric tonnes in inferred resources, primarily centered in Saskatchewan. The latest Preliminary Economic Assessment (PEA), released in November 2023, reflects a robust Phase 1 net present value (NPV) of $1.0 billion after tax, with an aggressive internal rate of return (IRR) of 48.5%.
In January 2024, Grounded Lithium entered a significant agreement with Denison Mines, allowing Denison the option to earn up to a 75% working interest in the KLP by funding a cumulative $15.15 million, combining cash payments and project expenditures. This collaborative initiative promises a fortified approach to lithium resource development.
Future Vision and Commitment
Grounded Lithium's multifaceted business strategy revolves around consolidating and exploiting crucial lithium resources while developing a leading, environmentally responsible lithium production operation. Their vision aligns with the global energy transition, contributing to sustainable practices in the energy sector. The company's forward-thinking approach involves rigorous assessments of reservoir capacities and production models.
Frequently Asked Questions
1. What is the significance of the 2024 field program completion?
The completion marks a major milestone in demonstrating the viability and potential of the Kindersley Lithium Project for lithium extraction.
2. Who is Grounded Lithium's strategic partner?
Grounded Lithium collaborates with Denison Mines Corp. to enhance the development and feasibility of their projects.
3. What were some key findings from the field program?
The program identified additional areas of lithium-rich brine and confirmed existing theories regarding the Duperow formation's deliverability.
4. What is the expected timeline for the Pre-Feasibility Study?
The PFS is anticipated to be completed in the near future, utilizing data gathered during the recent field program.
5. How does Grounded Lithium contribute to environmental sustainability?
Grounded Lithium is committed to environmentally responsible practices, aiming to support the global shift towards sustainable energy solutions through lithium production.
