This report presents exploration results and an inferred resource estimate for a lithium brine property in Esmeralda County, Nevada.
Report context
The technical report was prepared for ACME Lithium Inc. and ACME Lithium USA Inc., with an effective date of March 13, 2024. The Property consists of 119 unpatented placer mining claims totaling approximately 2,230 acres in the northwestern quadrant of Clayton Valley, Esmeralda County, Nevada. The claims adjoin Albemarle Corporation's Clayton Valley operations, which have been producing lithium since 1966. An inferred resource of 302,900 metric tons of lithium carbonate equivalent (LCE) has been calculated based on recently completed drilling. The report recommends a US$2,720,000 program of drilling, testing and ground geophysics to advance the Project.
Processing route
Proposed recovery method
For environmental, economic and recovery reasons a Direct Lithium Extraction (DLE) is expected to be used. Testing to begin selection of the exact process has yet to start. There has been no mineral process nor metallurgical testing of brines from the Project to date.
Process infrastructure context
The Property benefits from being immediately adjacent to Albermarle's producing operation which has road access and electrical power.
Water management concept
The use of DLE will considerably cut down the amount of ground water needed for this program as traditional brine pumping and the use of evaporation ponds has been proven to cause groundwater levels to decrease. After lithium recovery, the remnant brine would be injected into the ground, obviating the need for waste or tailings disposal.
Permitting status for processing
ACME currently holds a Dissolved Mineral Resource Exploration Well Permit from the Nevada Commission on Mineral Resources, the permit was approved on December 19, 2022, and expires 2 years after the date of approval. The permit approves a 5-acre foot limit of pumped water for the entire project. A 50-acre foot permit would be needed to successfully extract the lithium brine from the property.
Key reported parameters
| Parameter | Value | Unit | Basis |
|---|---|---|---|
| Average lithium grade (LGU) | 96 | mg/L | Composite of sampling from three drill holes |
| Inferred LCE resource | 302,890 | metric tonnes | Calculated over 40-year pumping life |
| LGU thickness | 525 | feet | Based on DH-1A and TW-1 drilling |
| Specific yield (LGU) | 6 | % | Mean value from core testing |
| Specific yield (lower ash) | up to 18 | % | Mean value from core testing |
| Total porosity range | 0.22 – 0.38 | ratio | Laboratory core analysis |
| Specific yield range (gravity drainage) | 0.06 – 0.16 | ratio | Laboratory core analysis |
| Hydraulic conductivity (LGU from pump test) | 1.05 – 1.3 | ft/day | TW-1 constant rate pumping test |
| Transmissivity (LGU from pump test) | 578 – 740 | ft²/day | TW-1 constant rate pumping test |
| Hydraulic conductivity (bedrock packer test) | 0.30 – 0.54 | ft/day | DH-1A packer recovery data |
| Transmissivity (bedrock packer test) | 12.3 | ft²/day | DH-1A packer recovery data |
| Average lithium from TW-1 pump test | 95 | ppm | Ten samples from isolated LGU |
| Packer sample lithium (Campito formation) | 77 | ppm | Single 20-foot interval, DH-1A |
| Estimated extractable brine volume (40-year) | 473,000 | acre-feet | Transitional Storage Reserve calculation |
| Estimated annual pumping rate | 11,825 | acre-feet/year | Transitional Storage Reserve calculation |
| Required pumping rate for 40-year dewatering | 7,331 | gpm | Transitional Storage Reserve calculation |
Technical qualifications
The following limitations are stated in the report: There has been no estimate of capital and operating costs. There have been no economic analyses made of the Project. There is no mineral reserve estimate. There has been no mineral process nor metallurgical testing of brines from the Project to date. The concept of Transitional Storage Reserve is highly variable and cannot be fully depended upon to predict the volume of releasable brine over time; factors or variables are only generally known. A robust groundwater flow model substantiated with a density of high-quality data is required to accurately estimate storage coefficients and potential response to pumping throughout the entire ACME Project area. The current ground water regulation is the most serious issue for the Project, as Clayton Valley is now judged to be over allocated and new diversions are not granted. The amount of LGU lithium brine water that can be pumped will require a water rights permit from the Division of Water Resources for each production well; currently Albemarle has all the groundwater rights within Clayton Valley in their possession. The results of current exploration and potential quantity and grade of proposed exploration targets are conceptual in nature and it is uncertain if further exploration will result in the exploration target being delineated as a mineral resource.
Source: Technical Report on the Clayton Valley Lithium Brine Property, Esmeralda County, NV USA, prepared for ACME Lithium Inc. and ACME Lithium USA Inc., Report Date: March 13, 2024, Effective Date: March 13, 2024, Sections 13, 14, 15, 16, 17, 18, 20, 21, 22, 25.
