Juniors nudge Saskatchewan into high-grade lithium brine spotlight

A few explorers in Saskatchewan might start a new discussion on lithium mining in the prairie province, where uranium and potash tend to dominate the conversation.

EMP Metals (CSE: EMPS) and LithiumBank Resources (TSXV: LBNK) are two Vancouver-based companies exploring for high-grade lithium brines on the Duperow formation in Saskatchewan, a regional reservoir that is shallower than the Leduc formation in Alberta and allows for lower operating costs.

EMP Metals was out of the gate running at Echelon Wealth Partners’ lithium conference on Thursday when moderator Gabriel Gonzalez said it demonstrates “between up to two to three times higher than average for western Canadian lithium brine grades.”

The companies were among eight lithium explorers who gave presentations at the conference.

In fact, EMP chief executive Rob Gamley said that while exploring its Tyvan, Mansur and Viewfield projects in eastern and southeast Saskatchewan, the firm has recorded the highest lithium brine concentrations in Canada to date, of up to 259 milligrams per litre.

Those projects cover 33 permits over a total land package of about 809 sq. km in Crown mineral dispositions, Gamley said.

Operating over the Duperow formation, Gamley pointed out that its aquifer support allows for less injection dilution and higher recoveries, lower sour gas concentrations and shallow drilling depths of about 1,800 metres.  

Of its three projects, Viewfield has returned the touted 259-mg per litre result from a 10.6-metre thick zone from 1,838 metres depth in hole 2-22-7-9 W2M at the Wymark D target.

In general, seven of eight zones at Viewfield returned results of more than 90 mg per litre, said EMP geologist and technical advisor Brian Balazs, who also spoke.

At Mansur, located northwest of Viewfield, highlights include 147 to 148 mg per litre from a 11.6-metre thick zone from 1,801 metres depth in hole 14-36-6-13 W2M from its Wymark C zone, and 101 to 106 mg per litre from a 4.9 metre thick zone from Wymark E.

“EMP believes that the Prairies are going to be the Saudia Arabia of lithium brines,” Gamley said. 

EMP’s exploration budget for this year is up to $4 million, with three holes planned at Mansur and Viewfield for a total of 7,500 metres of drilling.  

Technical reports for Mansur and Viewfield are planned for the second quarter, and development plans and preliminary economic assessments (PEAs) for the two projects targeted for the third quarter. Data from more drilling at Viewfield in the second quarter will be included in a PEA later in the year.

The explorer’s strategy is to be one of the first to production at pilot scale, which Gamley said is achievable by Q1 2024.    

Formerly known as Sentinel Resources, which was listed in 2020, it changed its name to EMP Metals in 2021. The explorer is also in a joint venture with Regina-based Rok Resources (TSXV: ROK), with both owning Hub City Lithium which holds 37 permits covering 860 sq. km of subsurface Crown dispositions in Saskatchewan. ROK holds a 25% interest in Hub City and EMP holds 75%.

EMP shares traded at 38¢ on Friday in Toronto, in a 52-week window of 17¢ and $1, valuing the company at $27.2 million.

Low carbon footprint

While brine projects in Alberta tend to be larger, such as the Bashaw district being developed by E3 Lithium (TSXV: ETL; US-OTC: EEMMF), in Saskatchewan, LithiumBank is taking advantage of the oil and gas infrastructure that has penetrated the Duperow formation and is targeting PEAs for its three projects later this year.

“We see the next generation of lithium being sourced from what we call petro-brines in North America,” said LithiumBank COO Kevin Piepgrass.

Piepgrass says the environmental footprint of lithium brine extraction through existing oil and gas infrastructure is much lower than through hard rock open pit extraction and evaporation ponds.

“We see our project having multiple well pads with multiple wells on each pad, reducing the footprint. It’s easy to remediate after the project is over in a few decades,” he said.

The company has access to more than 1,100 wells across its five projects: South Property and Estevan in southeastern Saskatchewan; Kindersley, just east of the Alberta border; Boardwalk, which is 270 km northwest of Edmonton, Alta.; Park Place, 50 km south of Boardwalk.

South Property, which borders the United States covers eight claims across 543.5 sq. km. A hydrogeological study for the project is expected in the second quarter, and an initial resource after the third quarter.

The property is adjacent to the Williston Basin project of privately-held Prairie Lithium, which is due to be acquired by Australia’s Arizona Lithium (ASX: AZL; US-OTC: AZLAF) in a cash and share deal valued at $70.6 million. Prairie reported test well results of 98 to 172 mg per litre just east of South Property, Piepgrass said.

Exploration around Estevan, a set of 11 claims across 367.8 sq. km has returned historic lithium grades of between 89 and 190 mg per litre, Piepgrass said. LithiumBank is aiming to release an NI 43-101-compliant resource in the third quarter.

The 451-sq.-km Kindersley project is LithiumBank’s largest in Saskatchewan, with a PEA expected in the fourth quarter. The project’s portion inside the Duperow formation consists of 16 claims hosting a brine volume of 3.9 cubic km, with lithium grades reported near the property ranging between 70 and 78 mg per litre, according to a hydrogeological study from last November.  

Piepgrass said each project area has different advantages and challenges, such as depth to Duperow, permeability, brine chemistry and temperature and lithium grades.

“We will find the ideal combination and match it with the most efficient DLE,” he said. “We are in a unique position where we can fully assess each project in parallel and move forward with the one that makes the most sense.”

The company plans to drill at least one hole in each of the projects this year, though Piepgrass didn’t specify how many metres would be drilled. Its 2023 budget for exploration in Saskatchewan is about $6 million. Its last financing was in October 2021, when it raised $6.8 million. It was listed last April.

For LithiumBank’s more advanced projects of Boardwalk and Park Place, PEAs are anticipated for the first quarter and second half of this year, respectively.

LithiumBank shares traded at $1.37 on Friday afternoon in Toronto, up 4.5%. Its shares have traded in a 52-week window of 62¢ and $1.50, giving it a market capitalization of $52.8 million.