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November 26, 2019 – Pure Energy Minerals Limited (TSX VENTURE:PE) (OTCQB:PEMIF) (the “Company” or “Pure Energy”) is pleased to report on the resumption of activities at its 100%-held Clayton Valley lithium brine project (“CV Project”) located in Esmeralda County, Nevada.
Pure Energy’s strategic partner, Schlumberger Technology Corporation (“SLB”) has begun the initial steps to advance its option to test, develop and acquire the CV Project. In May of 2019, Pure Energy and SLB signed an Earn-In agreement over the CV Project which requires significant investment by SLB at the Project, to include the design and construction of a pilot plant capable of processing lithium-bearing brines for high-quality lithium hydroxide monohydrate (“lithium hydroxide” or “LiOH∙H2O”) and/or lithium carbonate products at a specified rate. SLB will act as operator of the CV Project and will assume all costs and direction related to the project during the earn-in period. SLB has a 3-year period in which to achieve the goals to execute the Earn-In Agreement.
Pure Energy published a Preliminary Economic Assessment study (“PEA”) for the CV Project (news releases of June 26, 2017 and April 6, 2018) which details the Project’s drilling results, brine testing and resource calculation for a partial area of the CV project. The lithium-bearing brines identified at the Clayton Valley Project are of high quality with very low impurity levels and have been shown by small scale pumping tests to be amenable to conventional extraction. For further details, please refer to Pure Energy’s Annual General and Special Meeting Management Information Circular dated April 4, 2019, available on Sedar.com.
SLB plans to utilize both in-house and commercially available technology in the design of the CV pilot plant, including several components derived from Pure Energy’s previous studies. SLB’s costs, technical parameters and ultimate technology are anticipated to differ from the published PEA.
On January 3, 2019, the Nevada Division of Water Resources (“NDWR”) approved and granted a Finite Term Water Right to Pure Energy, through its wholly-owned subsidiary Esmeralda Minerals LLC, for the extraction of up to 50 acre-feet of water during a 5-year period from the CV properties. This water right is deemed sufficient for brine testing requirements and SLB’s future pilot plant facility.
The Company also reports that all 2019 property maintenance payments to the Bureau of Land Management (“BLM”) and Esmeralda County were made on schedule for the 948 claims which comprise the CV Project.
As preparation and project work by SLB proceed at the CV Project, Pure Energy plans to make periodic updates to shareholders. “Pure Energy is very pleased that Schlumberger is moving forward in the design and regulatory steps for construction of the new pilot plant. SLB brings significant capability and technical expertise to the CV Project and is focused on the project’s potential,” stated Mary Little on behalf of Pure Energy.
About Pure Energy
Pure Energy Minerals is a lithium resource developer that is driven to become a low-cost supplier for the growing lithium battery industry. Pure Energy has consolidated a pre-eminent land position at its Clayton Valley Project in the Clayton Valley of central Nevada for the exploration and development of lithium resources, comprising 948 claims over 23,360 acres (9,450 hectares), representing the largest mineral land holdings in the valley. Pure Energy’s Clayton Valley Project adjoins and surrounds on three sides the Silver Peak lithium brine mine operated by Albemarle Corporation.
The Company has completed a Preliminary Economic Assessment (“PEA”) for the Clayton Valley Project (news releases of June 26, 2017 and April 6, 2018) which includes an updated resource calculation and a preliminary economic evaluation. The economic analysis presented in the PEA is based upon inferred mineral resources only. 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 Project envisioned by the PEA will be realized.
Walter Weinig, Professional Geologist and Qualified Person as designated by the Mining and Metallurgical Society of America (MMSA registration #01529QP), is a qualified person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects and supervised the preparation of the scientific and technical information that forms the basis for this news release. Mr. Weinig is not independent of the Company, as he is a former officer.
On behalf of the Board of Directors,
“Mary L. Little”
Director, Pure Energy Minerals Ltd.
Pure Energy Minerals Limited (www.pureenergyminerals.com)
Telephone: 604 608 6611
Cautionary Statements and Forward-Looking Information
The information in this news release contains forward looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward-looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, change in government and changes to regulations affecting the mining industry. Forward-looking statements in this release may include future exploration and development on the CV Project. Although we believe the expectations reflected in our forward-looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.
The Company does not undertake to update any forward-looking information, except as required by applicable laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.