This Preliminary Economic Assessment describes a proposed lithium-brine extraction and processing project targeting the Duperow Formation in Saskatchewan using direct lithium extraction technology.
Report context
This NI 43-101 technical report, titled “Preliminary Economic Assessment Kindersley Lithium Project – Phase 1 Update (As of June 30, 2023)”, was prepared for Grounded Lithium Corp. The report presents a preliminary economic assessment (PEA) for the Kindersley Lithium Project (KLP), which is a proposed Phase 1 development of lithium-brine resources from the Devonian Duperow Formation in southwestern Saskatchewan. The report includes mineral resource estimates, a proposed processing route, and capital and operating cost estimates at the PEA level of study.
Processing route
Pre-Treatment
The proposed process design begins with pre-treatment of produced brine. The pre-treatment stage includes a PURON MP Ultrafiltration System to remove suspended solids and other contaminants from the raw brine prior to lithium extraction.
Lithium Extraction Process
Following pre-treatment, the lithium is extracted using the Li-PRO process, a proprietary direct lithium extraction (DLE) technology. This process selectively removes lithium from the brine while leaving other dissolved constituents in solution. The Li-PRO process schematic is presented in the report as a conceptual block flow diagram.
Lithium-Depleted Brine Disposal
After lithium extraction, the lithium-depleted brine is disposed of through dedicated disposal wells completed in the Basal Sandstone (Deadwood Formation). The disposal network is designed to manage the full volume of produced and processed brine.
Brine Polishing
The lithium-bearing solution from the DLE process undergoes brine polishing using Recoflo ion exchange technology. This step further purifies the lithium-rich stream by removing residual impurities.
Purification and Concentration
The polished lithium solution is then concentrated and purified using a fluid system reverse osmosis process. The reverse osmosis skid with membranes is designed to increase lithium concentration while rejecting remaining contaminants.
Production of Lithium Hydroxide Monohydrate
The final processing stage converts the concentrated lithium solution into battery-grade lithium hydroxide monohydrate (LiOH.H2O). This is the final product from the central processing facility.
Historical Operating Data
The report references historical production data from existing Duperow water source wells and disposal wells within the project area. Individual production profiles for Duperow water source wells and individual disposal profiles for Duperow water disposal wells are presented. Historical injection data for Basal Sandstone disposal wells is also included to support the design of the disposal system.
Testwork
A treatability study was conducted on bulk brine samples collected from the project area. The testwork included lithium concentration testing and cyclic testing using the proposed extraction process. The brine composition from well 102/04-15-032-23W3/00 was analyzed by Eco-Tec. Results of the cyclic testing are reported in the technical report. The treatability study also included LSS normalized loading and elution profiles for Brine Sample #1.
Key reported parameters
| Parameter | Value | Unit | Basis |
|---|---|---|---|
| Central processing facility design capacity | Not specified as a single value; refer to production capacity forecast | – | Proposed design |
| Production well technical specifications | Refer to well design section | – | Proposed design |
| Electric submersible pump specifications | Refer to pump configuration | – | Proposed design |
| Disposal well technical specifications | Refer to well design section | – | Proposed design |
| Grounded Lithium expected values (testwork) | Table 13-1 values | Various | Testwork |
| Lithium brine composition – 102/04-15-032-23W3/00 | Table 13-2 values | mg/L | Analytical testwork |
| Results of cyclic testing | Table 13-3 values | Various | Testwork |
| Lithium concentration test summary | Table 14-1 values | mg/L | Testwork |
| Production capacity forecast | Table 1-3 | – | Proposed design |
| Capital expenditure summary | Table 1-4 | CAD | Proposed design estimate |
| Operating expenditure summary | Table 1-5 | CAD/year | Proposed design estimate |
| Duperow water source wells – production summary | Table 6-1 | m3/day | Historical operating data |
| Duperow water disposal wells – injection summary | Table 6-2 | m3/day | Historical operating data |
| Basal Sandstone disposal wells – injection summary | Table 16-7 | m3/day | Historical operating data |
Project website: https://groundedlithium.com/kindersley-lithium-project/
Technical qualifications
This report is a Preliminary Economic Assessment (PEA), which is a study that includes an economic analysis of the potential viability of mineral resources. The report states that mineral resources that are not mineral reserves do not have demonstrated economic viability. The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA results will be realized. The report does not include a mineral reserve estimate. The recovery methods and process design are conceptual in nature and based on testwork at the treatability study level. Capital and operating cost estimates are at a PEA level of accuracy.
Source: NI 43-101 Technical Report: Preliminary Economic Assessment Kindersley Lithium Project – Phase 1 Update (As of June 30, 2023), Sections 1.5, 13, 16, 17, 21.
