{kanada_flagge}Solid opposition has formed against the technical extraction of lithium through advanced direct extraction (DLE) processes. The common prejudices are: does not work on an industrial scale; will not be permitted; uses too much water or does not obtain water rights. The list could go on. Pure Energy Minerals Ltd (TSXV: PE; OTCQB: PEMIF) and its partner SLB (formerly Schlumberger) are just proving that DLE does have a future – in the heart of Nevada in the Clayton Valley adjacent to Albemarle’s Silver Peak Mine, which continues to operate with conventional evaporation ponds.
Solid opposition has formed against the technical extraction of lithium through advanced direct extraction (DLE) processes. The common prejudices are: does not work on an industrial scale; will not be permitted; uses too much water or does not obtain water rights. The list could go on. Pure Energy Minerals Ltd (TSXV: PE; OTCQB: PEMIF) and its partner SLB (formerly Schlumberger) are just proving that DLE does have a future – in the heart of Nevada in the Clayton Valley adjacent to Albemarle’s Silver Peak Mine, which continues to operate with conventional evaporation ponds.
Nevada Regulators give green light to DLE pilot plant
Pure Energy and Schlumberger have just received all approvals from key government agencies to construct and operate the Direct Lithium Extraction (DLE) pilot plant at its Clayton Valley Lithium Brine Project (“CV Project”) in Esmeralda County, Nevada. SLB’s sustainable lithium production process at Pure Energy’s Clayton Valley Project is water efficient and reduces environmental impact compared to existing evaporation ponds. This is the first project of its kind in North America.
The final permit required to operate the DLE pilot plant at the CV Project became effective March 17, 2023. This permit authorizes the construction and operation of the pilot plant at the Clayton Valley site. Pure Energy’s partner, SLB (formerly Schlumberger), through its New Energy division, is responsible for the design, construction and operation of the pilot plant to produce lithium compounds in a highly sustainable manner.
In May 2019, Pure Energy Minerals signed an earn-in agreement on the Clayton Valley project, effectively relinquishing control of its 94 km2 project to strategic partner SLB, which is the operator of the Clayton Valley project. Pure Energy will still receive a 3 percent royalty on future production.
Bottom line: The fact is that the only producing lithium mine in the U.S. is the Silver Peak Lihtium Brine Project in Clayton Valley, Nevada. Right next to it, Pure Energy owns a 94 km² license being developed by Schlumberger. The approval of the first DLE facility in the U.S. – albeit at a pilot scale – is a milestone for future lithium production. Evaporation ponds, such as those operated by Albemarle, represent an old, inefficient technology that wastes water and loses up to 40% of the lithium. The future of lithium extraction at brine projects therefore belongs to (competing) direct extraction technologies – especially in Nevada. Had Pure Energy not been limited to its role as a licensor, the approval would certainly have caused even more significant movement in the stock. Meanwhile, Usha Resources (TSXV:USHA; FRA:JO0) is working on the discovery of a second “Clayton Valley” in Nevada on it’s 100 % owned Jackpot Lake project just a four-hour drive from Silver Peak. The first two drill holes are encouraging and the positive news on DLE further boosts the project. Crucially, the lithium market has completely changed since 2019 when Pure was forced into its deal. There will certainly not be a distressed sale at Usha like there was at Pure Energy. Rather, we believe that DLE providers will fight to be the ones to showcase their technology on the big stage in Nevada. That’s a good outlook for Usha Resources.
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