Canadian International Minerals Inc. Applies For Alberta Lithium Brine Permits
November 2, 2015 / TheNewswire / Vancouver, British Columbia - Canadian International Minerals Inc. (the "Company") (TSXV: CIN) is pleased to announce it has submitted applications for Metallic and Industrial Minerals ("MAIM") permits in northern Alberta, to be known collectively as the Leduc Property (the "Property"). The Leduc applications cover large portions of saline formation water aquifers which contain elevated and potentially economic concentrations of lithium (Li), potassium (K), boron (B), bromine (Br), calcium (Ca), magnesium (Mg), and sodium (Na). These aquifers are spatially associated with oil and gas fields which are host to a number of producing, suspended, and abandoned wells.
Leduc Property - Application Details
A total of 7 permit applications were submitted, covering a total area of approximately 64,512 hectares (159,412 acres). The Company expects the applications to be successfully approved within the next 6-8 weeks, but cautions readers that no permits have been granted at this time. The applications were submitted in conjunction with the Company's prospecting partners. There will be no cash or share consideration, though the Leduc permits will be subject to a 2% Gross Overriding Royalty.
The industrial mineral potential of formation waters in Alberta was first thoroughly examined in a 1995 report by the Alberta Geological Survey ("AGS") titled "Resource Estimates of Industrial Minerals in Alberta Formation Waters", as part of a multi-year study. The study examined over 130,000 formation water analyses for Ca, Mg, K, Li, I, and Br, resulting in the identification of five stratigraphic intervals in four regions in Alberta, in which elemental concentrations exceeded the respective threshold values for regional exploration. The majority of the formation water samples were collected by the oil industry under provincial regulations.
In 2010, the AGS constructed an Alberta-wide Lithium Groundwater and Formation Water Geochemical dataset, comprised of data from the AGS and the Alberta Research Council. The intent of the data compilation was to aid industry in evaluating and characterizing resource estimates by being able to distinguish background and anomalous concentrations of lithium throughout Alberta. The resulting dataset contains 1,511 records, of which 48 returned results greater than the defined threshold value of 75 ppm Li. A total of 19 analyses returned greater than 100 ppm Li from the Beaverhill Lake Formation and Woodbend and Winterburn Groups in west-central to northwestern Alberta.
Leduc Property Details
Mineralization on the Leduc Property consists of Li-enriched Na-Ca brines hosted in aquifers within the Devonian Leduc Formation carbonate reef complex, with demonstrated good porosity and permeability. Petroleum products are being produced from a number of wells within the boundaries of the Leduc property, though the petroleum field is quite mature and most of the wells produce far more water than petroleum products.
The highest lithium value recorded on the Property is 140 mg/L. This is the highest lithium value identified in the Alberta Geological Survey's 1995 report (tied with two other samples).
The Company has identified 5 key points which it feels combine to make the Leduc Property a compelling opportunity:
-Anticipated increased demand for lithium
-Mature petroleum field with existing wells
-Excellent jurisdiction, infrastructure, and service sector
-Depressed oil prices
-Recent changes of government (provincially and federally)
Lithium is not traded on an international exchange, and as such the marketplace can be difficult to interpret. Buyers negotiate with producers on an individual basis, with purchases typically tied to longer term supply contracts. Discussions of lithium pricing typically refer to lithium carbonate (Li2CO3), lithium chloride (LiCl), or lithium hydroxide (LiOH). A 2015 report on lithium by the U.S. Geological Survey estimated the average price of battery-grade lithium carbonate to be $USD 6,600/tonne in 2014 - up from $USD 5,180/tonne in 2010. Many analysts anticipate the price of lithium products will continue to rise in the years to come as the demand for lithium batteries continues to rise.
The mature Sturgeon Lake oilfield which covers the majority of the Leduc Property presents a unique opportunity, as there are a great number of existing active, suspended, and abandoned wells which could be repurposed for brine extraction, thus saving significant drilling costs.
Alberta is a world-class jurisdiction for resource extraction, with excellent infrastructure and an extensive oil and gas workforce with skills critical to the development of the Leduc project. The Company anticipates the recently elected provincial and federal governments will be supportive of the Leduc project, as part of their "green" jobs and industry plans. Canadian International Minerals Inc. is committed to developing the Leduc project in a sustainable and responsible manner.
The Company is currently compiling and reviewing all geological and well data for the Property. Active, suspended, and abandoned wells will be identified and prioritized, and well owners and surface rights owners will be contacted and consulted. A sampling program will be designed as a result of these investigations, with the ultimate near-term objective being the completion of a N.I. 43-101 compliant resource estimate.
Concurrently, the Company will begin investigating various joint-venture and financing possibilities with public and private entities.
The technical data in this news release has been reviewed by Thomas Hasek, P. Eng., a Qualified Person under the terms of N.I. 43-101.
For further information, please contact:
Canadian International Minerals Inc.
Michael E. Schuss
President and CEO
This news release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements; the uncertainty of future profitability; and the uncertainty of access to additional capital. These risks and uncertainties could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressed qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Copyright (c) 2015 TheNewswire - All rights reserved.