Pure Energy Minerals up 35% on lithium update
Pure Energy Minerals Ltd. [PE-TSXV; PEMIF-OTCQB] said Thursday January 10 that it has received a water right to extract lithium-bearing brine needed for the operation of a planned pilot plant at its flagship Clayton Valley project in Nevada.
Pure Energy shares jumped 34.78% or $0.04 to 15.5 cents on volume of 1.07 million. The shares trade in a 52-week range of 4.5 cents and 44 cents.
Pure Energy is a lithium resource developer that is driven to become a low-cost supplier for the growing lithium battery industry. Lithium is an essential ingredient in the electrification of automobiles and grid storage.
The water right, which Pure Energy said was granted by the Nevada Division of Water Resources, provides the permit necessary to pump bring from the Clayton Valley aquifer and deliver the brine to the planned pilot plant for pilot-scale production of lithium hydroxide monohydrate.
Pure Energy said it plans to operate the pilot plant for a period of six to 12 months to further evaluate the innovative process technology proposed for the extraction of lithium from brine and production from lithium hydroxide at the Clayton Valley Project.
Data from a successful pilot plant trial will be used in the design of a full-scale commercial plant to produce lithium hydroxide monohydrate directly from Clayton Valley brine
In October, 2017, Pure Energy said it had executed a non-binding memorandum of understanding with Tenova Advanced Technologies Ltd., TAKRAF USA Inc. and their technology partners.
Under the MOU, Pure Energy said they will design, build, and operate a pilot plant to demonstrate the viability of the lithium brine extraction and processing technologies developed and patented by TAT (the Tenova Process).
Following a recent positive preliminary economic assessment (PEA), the pilot plant is the next major step along the path to develop Pure Energy’s Clayton Valley lithium brine project in Nevada as the world’s most efficient and environmentally friendly lithium production facility.
The PEA for the Clayton Valley Project forecasts average annual production of approximately 10,300 tonnes of lithium hydroxide or 9,100 tonnes of lithium carbonate equivalent, using more efficient and sustainable new technologies that do not require evaporation ponds.
Pure Energy was in the news recently when it announced that Lithium X Energy Corp. [LIX-TSXV] had taken a $2 million strategic investment in the company, comprised of 3.57 million units, priced at $0.56 per unit.
“The water right is a key milestone in the development of the Clayton Valley Project,” said Walter Weinig, Pure Energy’s vice-president for projects and permitting. “As the State Engineer pointed out in his ruling, obtaining water rights approval is often a first step in obtaining other government approvals for the project,” he said.
“While the 20,000 acre-feet per year of available water rights in Clayton Valley are fully appropriated, about 10,000 acre-feet go unused annually,” Weinig said. “Our finite term water right of 50 acre-feet in total, to be used within five years, is a tiny fraction of the unused appropriation,” he said.