Grounded Lithium Corp. Announces Budget for Kindersley Project
Grounded Lithium Corp. (TSXV: GRD, OTCQB: GRDAF) has recently announced an ambitious budget of CAD$4.5 million aimed at advancing the Kindersley Lithium Project (KLP). This significant funding will be entirely provided through their partnership with Denison Mines Corp (NYSE American: DNN). Both companies are dedicated to pushing the KLP forward and initiating various technical developments to ensure its success in the future.
Highlights of the Budget
The budget will support essential activities related to the upcoming phases of the KLP, including thorough technical de-risking processes that are expected to culminate in a pre-feasibility study (PFS). This study will evaluate the feasibility of producing commercial-grade lithium from the project.
Overview of Technical Strategy
The funding designated for the project will encompass a variety of initiatives:
- Creation of a pre-feasibility report compliant with NI-43-101 standards.
- Extensive drilling and resource delineation to investigate multiple reservoir layers.
- Increased brine production aimed at comprehensive testing of pre-filtering and extraction technologies.
- Development of a detailed depletion and recovery model to improve the project's economic assessments.
Progress and Future Initiatives
Grounded Lithium is actively collaborating with leading engineering firms through a request for proposal (RFP) process to create the independent PFS. This study builds on a preliminary economic assessment conducted in 2023, which revealed a highly favorable net present value (NPV) after taxes. The company plans to carry out extensive metallurgical tests to compare various extraction technologies, which is a vital step before potentially launching a field pilot test.
Insights from Leadership
Gregg Smith, President and CEO of Grounded Lithium, expressed excitement about the partnership with Denison. He pointed out the significant benefits of the project, particularly the availability of high-quality resources. He underscored the collaborative efforts that have been established to deliver value to shareholders as they work toward a carefully considered and thorough PFS.
Details of the Earn-In Agreement
The agreement between Grounded Lithium and Denison Mines outlines that Denison will finance the project’s expenses in return for a working interest in the KLP. By investing CAD$2.2 million in project costs, Denison will secure a 30% interest in KLP and is looking to enhance their stake through future phases.
Financial Contributions and Impact
As the project advances, Denison's financial support has strengthened the project's liquidity and operational flexibility. With anticipated increases in cash contributions, this partnership is poised to solidify Grounded Lithium’s financial foundation while enabling ongoing geological and engineering evaluations crucial for bringing the project to fruition.
About Grounded Lithium Corp.
Grounded Lithium Corp. is a leading entity in lithium brine exploration and development, holding significant lithium resources in Canada. The company is dedicated to responsible mining practices that facilitate the global shift toward renewable energy. Currently, Grounded Lithium boasts an extensive land portfolio, estimated to contain around 1.0 million metric tonnes of lithium carbonate equivalent resources.
Frequently Asked Questions
What is the purpose of the CAD$4.5 million budget?
The budget is designated for advancing various developmental aspects of the Kindersley Lithium Project, including technical studies.
How will the funding impact the Kindersley Lithium Project?
This funding will support critical assessments and technical developments necessary to optimize the feasibility of lithium production.
What role does Denison play in the project?
Denison Mines is the primary funding partner that provides financial backing under the agreement to acquire a working interest in the project.
What are Grounded Lithium's future plans?
Grounded Lithium intends to complete a pre-feasibility study and further explore innovative extraction technologies through research and testing.
What resources does Grounded Lithium currently possess?
Grounded Lithium holds approximately 1.0 million metric tonnes of Measured & Indicated lithium carbonate equivalent, enhancing its development potential.
