Lithium Exploration Group Inc. Announces Maiden Resource Estimate for Valleyview Mineral Brine Project in Alberta
(firmenpresse) - SCOTTSDALE, AZ -- (Marketwire) -- 03/21/12 -- Lithium Exploration Group Inc. (OTCBB: LEXG) (the "Company") is pleased to announce a maiden resource estimate for its Valleyview lithium (Li), potassium (K), boron (B), bromine (Br), magnesium (Mg), calcium (Ca) and sodium (Na) brine project (the "Valleyview Project") centered around and in the vicinity of the town of Valleyview in west-central Alberta, Canada.
LEXG's Valleyview Property comprises 29 Industrial and Metallic Mineral Permits that form a single contiguous land package totaling approximately 514,000 acres, of which, LEXG retains 100% mineral rights to the Property. The Property covers a large portion of the Sturgeon Lake and Sturgeon Lake South oilfields, from which petroleum products are produced from dolomitized reefal carbonates of the Leduc Formation. Spatially associated with the oil/gas pools at depths of 3,300 to 4,000 m, the Leduc aquifer comprises Li-K-B-Br-Mg-Ca- enriched sodium-chloride brines that are pumped to the surface as waste co-products by continuing oil and gas production.
The Company commissioned APEX Geoscience Ltd. to conduct the resource estimate in accordance with National Instrument 43-101 standards for the Leduc aquifer system on a portion of the Valleyview Property (the "Resource Estimate"). The Resource Estimate focused only on the eastern and southeastern portion of LEXG permits that overlay the Sturgeon Lake oilfield. Consequently, the area of study and Resource Estimate spans approximately 227,000 acres, or 44% of the total LEXG Valleyview Property permit holdings.
The Resource Estimate is based on: 1) a compilation and review of formation water and stratigraphic data from publicly available petroleum well databases; 2) the geochemical results of LEXG's 2011 formation water sampling program where 40 wells were sampled (47 samples) within an 82 square kilometre area providing a general sample well density of 0.5 wells per square kilometre; and, 3) a hydrogeological study by Hydrogeological Consultants Ltd. to quantify the total in-place brine underlying LEXG's Property and to investigate what influences hydraulic parameters such as transmissivity (permeability x aquifer thickness) and storativity (the volume of water expelled per unit surface area as a result of a change in head) might have on resource extraction.
A total in-place formation water volume of was calculated for the Leduc Formation aquifer system underlying LEXG's Valleyview Property. By multiplying the total in-place formation water volumes by the average grades from LEXG's 2011 sampling program, the total in-place Resource Estimates comprise 384,750 tonnes of Li, 26.5 million tonnes of K, 649,800 tonnes of B, 2.3 million tonnes of Br, 134.5 million tonnes of Ca, 16.5 million tonnes of Mg, and 355.6 million tonnes of Na (Table 1). These values represent 100% recovery of the elements from the formation water and do not reflect process recoverability, which are subject to ongoing metallurgical studies. The resource estimate is inferred, in accordance with CIM standards where quantity and grade can be estimated on the basis of geological evidence and limited sampling, and geological grade continuity is reasonably assumed, but not verified. In addition, the estimate is based on limited information and sampling gathered through appropriate techniques.
Table 1. Total inferred in-place resource estimate for selected minerals within the Leduc Formation (Woodbend Group) aquifer system of Lithium Exploration Group Inc.'s Valleyview Property. The inferred resource estimate is based on a total in-place formation water volume of 5.7 billion cubic metres.
Of the total in-place formation water volume (), hydrogeological characterization of the reservoir indicates that at an effective transmissivity of 1.0 m²/day and corresponding storativity of 6.0 x 10(-5), an inferred Recoverable brine volume of approximately (or 3.1% of the total in-place brine) could theoretically be pumped from the Leduc aquifer system to 200 m of the available drawdown within LEXG's Property over the next 20 years. A transmissivity of 1.0 m²/day is considered to be the most realistic interpretation from the available data, however, transmissivity can also be bracketed by minimum and maximum transmissivity values such that the expected Recoverable brine over 20 years ranges from 71.8 million cubic metres (1.3% of the total in-place brine) to 258.5 million cubic metres (4.6% of the total in-place brine). Recovery of minerals, assuming 100% recovery, from the 1.3%, 3.1% and 4.6% Recoverable brine volumes is presented in Table 2. The Recoverable values are subject to change because the values can be influenced by a number of factors including changes to the transmissivity by advanced pressure tests, mineral recovery methodology, regulatory extraction policies and the reinjection of treated formation water back into the reservoir, which would limit the hydraulic depression caused by pumping such that a considerably greater volume of brine could be recovered.
Table 2. Hypothetical mineral and end product resources that could be expected to be recovered over 20 years based on a range of calculated effective transmissivities (permeability x aquifer thickness) as determined from publicly available data. The table illustrates the sensitivity of the recoverable resource with changes in the applied yield quotient.
"We are excited to have this maiden resource finalized. With this milestone complete we can move to the next steps of bringing this resource to a full feasibility study, which will begin immediately," commented CEO Alex Walsh. "We are proving that the production of lithium and other valuable minerals from oil field brine in Alberta is inevitable and we are in a strong position to be first to market."
The independent brine resource estimated by APEX Geoscience Ltd. is consistent with the standards set out in Canadian Securities Administrators' National Instrument 43-101 and the Company is treating the inferred brine resource estimate as a National Instrument 43-101 resource estimate. The Company has published a report consistent with the format of a National Instrument 43-101 Technical Report, which will incorporate the brine resource estimate, on its website at . Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by geology, environment, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.
The resource model and brine resource estimate was completed and/or supervised by Mr. Michael B. Dufresne, M.Sc., P.Geol., President of APEX Geoscience Ltd. of Edmonton, Alberta, who is an 'Independent Qualified Person' as defined in the instrument and who has reviewed and approved of the contents of this news release.
Lithium Exploration Group is a US based exploration and development company focused on the acquisition and development potential of lithium brines and other precious metals that demonstrate high probability for near-term production. Currently the company is focused on its Western Canada and South America properties. Lithium Exploration Group is a fully reporting company traded on the OTCBB under the symbol LEXG. Website: . Lithium Exploration Group is also now on Facebook, LinkedIn and Twitter (at)LEXG_OTCBB.
This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, including but not limited to the completion, testing, transportation, and final installation of the unit, the acquisition of additional capital, and the completion of any resource estimates or a feasibility study.
Cautionary Note to US Investors - The United States Securities and Exchange Commission permits US mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this release, such as "measured", "indicated", and "inferred resources", which the SEC guidelines strictly prohibit US registered companies from including in their filings with the SEC. US Investors are urged to consider closely the disclosure in our Form S-1 or Form 10-K which may be secured at .
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of lithium prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
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Datum: 21.03.2012 - 13:00 Uhr
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