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Company Websitewww.pureenergyminerals.com

Lithium player, Pure Energy: poised for production

   
 

 

image: http://www.stockhouse.com/media/news-images/Interviews/PureEnergy_logo.png

Click to enlargeUp in the desolate expanses of the high Nevada desert, a vision for the future of energy is taking shape. For Pure Energy Minerals, a prospective lithium miner with a large land holding, the lithium fields deep below the surface of the Silver State's Clayton Valley could be the key to a low-carbon, electric future. And now it believes it has a roadmap to get there.
 
On June 26, Pure Energy Minerals Ltd.(TSX: V.PE, OTCQB: PEMIF, Forum) tabled its preliminary economic assessment (PEA) for its planned mine and industrial plant in Nevada's lithium-rich Clayton Valley. The proposal lays out a vision for a cost-effective, environmentally friendly mine and plant that could be online by 2021, meeting the skyrocketing demand for lithium on the part of automakers and utilities alike. If realized, Pure Energy could come to play an important role in automakers such as Tesla's vision of a future where electric vehicles rule the road.
 
For Pure Energy, the plan entails a capital cost of US$297 million to build out an operation that could have an annual production of 10,300 tonnes of lithium hydroxide monohydrate (LHM) or 9,100 tonnes of lithium carbonate equivalent (LCE). Using sector-leading technologies that do not require evaporation ponds, the plant could mark a shift away from the environmentally taxing and time intensive processes that have proven an obstacle for other lithium producers.
 
"We expect to do more research on the process side, on to grow the resource itself, but in its first pass of economic assessment, what shines is that with a new technology using solvent extraction instead of ponds, we can achieve real-time production," says Patrick Highsmith, Pure Energy CEO and a rare veteran of the lithium space.
 
With a projected average operating cost of $3,217 per tonne of LHM, Pure Energy's proposal would entail some of the lowest production costs in the industry. "We can show with this study that we can do it and do it at a low cost," says Highsmith. Prices are projected to volley between $9,100 and $16,500 per tonne during the life of the plant, but with the higher prices projected in the near term, it could pay off the capital costs of the plant in four years.
 

image: http://www.stockhouse.com/getattachment/508e2ed9-cd2d-4846-8d38-21a4252e5601/PureEnergy_1-(1).png

Click to enlarge
 

image: http://www.stockhouse.com/getattachment/d6bb37e0-2b08-46ec-addb-30d3c7997db7/PureEnergy_2.png?width=450&height=331

PureEnergy_2.png
Pure Energy’s land package in the Clayton Valley more than doubled in size after it acquired claims from partner Lithium X in the spring (Pure Energy)   (click to enlarge)

Pure Energy's foremost asset, however, is its land package in North America's only producing lithium jurisdiction. Altogether, Pure Energy has cobbled together 26,300 acres in mineral claims in Nevada's Clayton Valley, surrounding the only operating lithium mine in the US (or in North America), Silver Peak. "When you're in this game a while, you know that you need to get all of the land," says Highsmith. Owned by Albemarle Corporation, the Silver Peak mine currently produces 6,000 metric tons of lithium carbonate equivalent (LCE) per year.
 
Pure Energy's stake contains an inferred mineral resource of 218,000 tonnes of LCE, according to the PEA. Drill tests in May demonstrated two more attributes that add to its desirability: a very favourable chemistry compared to other producing regions, and a formation that demonstrates high levels of lithium right down to the bottom of the basin. That first finding is particularly important; as the low levels of deleterious elements can help keep down processing costs on the lithium extracted.
 

image: http://www.stockhouse.com/getattachment/77d1e596-4ba9-4060-ac90-77433603913e/PureEnergy_3.png

Click to enlarge
An illustration of the proposed plant (Tenova Advanced Technologies)

But it’s at its site in Nevada where Pure Energy plans to forge new ground in lithium mining. Lithium brine has traditionally been mined and then processed by evaporation, a time-intensive process that can take several months. The process also requires vast quantities of water and large tracts of land to be devoted to sprawling green-tinted evaporation ponds, which can often have a detrimental effect on the environment and the water table.
 
Pure Energy, instead, plans to use an industrial process, devised by its engineering partner Tenova Advanced Technology – a subsidiary of mining services giant Techint Group–that will massively cut production times and water consumption on site. Tenova's technology removes elements like calcium, thereby purifying the brine, so that lithium can be quickly recovered.  
 
The technology uses a series of processes already used at scale in the mining sector, such as electrolysis, a process used in copper extraction; solvent extraction as used to treat uranium; and desalination. "I would call it more an innovative application of existing technology," says Paul Zink, chief financial officer of Pure Energy, "the difference is that we're putting the pieces together for lithium."
 
Pure Energy piloted a mini-version of its proposed plant (it processed about 20 tonnes of brine) as part of its PEA. Now the company plans to build a full pilot plant, which will operate continuously on-site in Nevada, three and a half hours from Tesla's Gigafactory, which it could eventually supply. It will also allow regulators and potential clients to observe the technology first hand, and even take receipt of the test product.
 

image: http://www.stockhouse.com/getattachment/ade9ecd0-8c3f-4008-8fc5-ea491e3ab251/PureEnergy_4.png

Click to enlarge
(Pure Energy)

Tenova's technology holds promise to make the lithium extraction process more efficient, cost-effective and environmentally sustainable. As demonstrated in their test work, the technology has produced very high recoveries of lithium from the brine; 91% from every liter of brine, as compared to the 40 to 50% that is typically recovered from evaporation ponds. It could also result in a much more environmentally friendly presence in the valley.
 
“Rather than hundreds of acres of evaporation ponds, our footprint will consist of a plant that is a couple hundred meters on a side and then our wells in the basin. That will make production of lithium much less water intensive. Rather than pull all that water from ground, we'll proactively extract lithium from brine, then clean it up and return it back into the basin, thereby conserving it," says Highsmith.
 

image: http://www.stockhouse.com/getattachment/f3484171-f9c1-4d89-b48c-cc8d6deca3d7/PureEnergy_5.png

Click to enlarge
Demand has increased rapidly in the past decade (Metalary)

From cell phones and laptops to trucks, buses, electrical grid storage systems and even lawnmowers, lithium battery technology is making inroads at a staggering pace. And as demand for batteries rises, so goes demand for lithium. "It's all about feeding the battery business," says Highsmith. And in recent years, efficiencies in battery technology have driven down costs, allowing electric batteries to be a feasible for option for ever larger devices, including trucks. Overall, it's driven sales of batteries at a brisk space.
 
In 2009, the market for lithium batteries was worth $10 billion. By 2016, it had passed $25 billion per year. By 2025, it's expected to reach $40 billion thanks in part to a rapid rise in demand from China, according to Goldman Sachs. “We need one major new lithium mine each year over the next decade to meet that demand, and that usually doesn't happen in the mining industry," says Highsmith.
 
Primarily electric vehicles drive that demand for batteries. As the cost of batteries for electric cars has fallen, 70 per cent in the past seven years, according to Highsmith, the total costs of ownership of electrics vehicles have come much closer to those of internal combustion engines. By 2018, the costs associated with the two models will converge for the first time, according to UBS Securities.
 
One example on the automaker side is Volkswagen, which has recently made serious overtures to the electric car market. The German manufacturer, a relative newcomer to the electric vehicle space, has ambitious plans to expand beyond its current Golf line in order to meet future consumer demand. By 2025, one-fifth of its output will be electric, as it plans to launch 30 electric models.
 
Tesla, which entered into a Conditional Supply Agreement with Pure Energy in 2015, plans to have its more economical Model 3 on the road by 2020 while increasing the range of its vehicles to more than 1,000 km.
 
Volvo, owned by Chinese manufacturer Geely, plans to make its fleet entirely electric and hybrid starting in 2019.
 
And with each battery pack requiring an average of 40 to 60 kilograms of lithium, electric vehicles will drive demand for lithium. According to UBS Securities, those dynamics promise to supercharge the market for electric vehicles. In 2016, global production of lithium hydroxide was only 39,000 tonnes, but Benchmark Mineral Intelligence projects lithium hydroxide demand to exceed 150,000 tonnes by 2025.
 
For Pure Energy, that could mean prices averaging more than $12,000 per tonne, according to a report conducted for the company by external consultancy Benchmark. That report projects a lithium hydroxide price of $12,000 per tonne by 2021, when the proposed Clayton Valley Project would be ramping up. Further afield, the price is expected to strengthen through 2025 to $16,500 per tonne, before declining to as low as $9,000 per tonne by 2038 as new supply and demand mature.
 
Shepherding the project to production by 2021 is a team with experience both in lithium and in the transition from exploration to production. CEO Highsmith, a 28-year veteran of the mining industry with experience at Rio Tinto, BHP Billiton, and Newmont Mining was brought on as a director in 2015 and then hired as CEO in March 2016. He was brought on board in part due to his experience negotiating off-take agreements with parties such as LG, Hyundai, and KORES in his previous role as CEO of Lithium One. In a space as new as lithium, he is a rare player who can be called a veteran.
 
On the operations side, the company recently hired Walter Weinig as Vice President of Projects & Permitting, a geologist and seasoned project manager who recently led the prestigious Sanford Underground Research Facility in South Dakota.
 
Finally, in June, the company hired Paul Zink, a mining finance professional with 35 years’ experience in project finance, strategic planning and business development. Zink also spent more than 15 years with J.P. Morgan & Company covering the minerals and energy sector.
 
On the board side, the company recently brought on board Scott Shellhaas, a mining lawyer with deep experience in navigating the transition from junior miner to mid-tier producer, most notably as president of Thompson Creek Metals Company where he oversaw the $1.6 billion start-up of the Mt. Milligan copper gold mine in B.C.
 

image: http://www.stockhouse.com/getattachment/a316caaa-38c7-4f00-9846-b89885e78eb4/PureEnergy_6.PNG

Click to enlarge
Terra Cotta Project with prominent South American lithium producers  (Pure Energy)

It's a team well positioned to take its Clayton Valley Project into production–and to do it in a cost-effective manner. Further afield, the company has a strategic position in the Lithium Triangle in Argentina. The company’s new Terra Cotta Project in in Salta Province, a jurisdiction that was rated the 3rd best mining jurisdiction in South America by the Fraser Institute. Yet the focus is to break ground at Clayton Valley in 2019, gearing towards production by 2021.
 
"The costs so far appear to suggest that low OpEx like this trumps this relatively expensive CapEx to build a plant with this new tech – and we think that we can drive the CapEx down," says Highsmith, "as they say in Australia, horses for courses, and it would appear that this extraction process is the right horse for Clayton Valley."

Read more at http://www.stockhouse.com/news/newswire/2017/07/13/lithium-player-pure-energy-poised-for-production#zFmoJsu3U6xQ5BFG.99

TSX.V:PE      OTCMKTS:HMGLF

About Pure

Pure Energy Minerals Ltd. (V.PE) is a well-financed lithium brine exploration and processing developer with a focus on sustainable lifecycle solutions for lithium supply in North America. Based in Vancouver, BC, Pure Energy has an experienced management team with backgrounds in finance, exploration, geoscience, lithium processing, permitting and construction. The Company is currently focused on advancing their flagship lithium brine project in Clayton Valley, Nevada.
Revolutionizing EV Energy Storage
 

 

 
 
 
Pure Energy Minerals Limited Newsletter 2015 Vol. 2
TSX-V: PE   Frankfurt: AHG
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  Website
  Brochure
  Presentation
 
I
 
Pure Energy executed the most comprehensive seismic program ever conducted in Clayton Valley which resulted in an unprecedented view into the basin underlying our claim area.
Preliminary Seismic Data Reveals Mineralized Zone Extends Throughout Claim Area

Pure Energy invested significant resources into completing a very comprehensive seismic reflection survey spanning a large portion of Clayton Valley.  The purpose of the seismic work is to get a view deep into the basin to illustrate the depth and areal extent of mineralized zones that potentially contain lithium resources.  When coupled with our intrusive work (i.e. drilling), and other geophysics data (such as downhole geophysics and gravity data) we are able to assemble a geologic model of the basin.  This will identify the potential size of mineralized zones, which is critical to calculating the inferred resource potential and future drill targets.  High quality data is clearly of value, and Pure Energy took the 'cadillac' approach - 600 data collection sites and nearly 20 kms of seismic transects.  Over 1 terabyte of data was collected, analyzed and interpreted.

The initial results are very positive, demonstrating that the mineralized zone intersected in Pure Energy's recent drilling campaign extends throughout Pure Energy's entire claim area, from the existing Silver Peak lithium operations southwards to include the new lithium placer claims recently acquired by Pure Energy.  In addition, the mineralized zone appears to extend deeper than the base of the existing and historical exploration boreholes and maintains this thickness throughout the entire basin.  These findings will be incorporated into the forthcoming Inferred Resource Assessment Report (NI 43-101 complaint).

 
The recent exploration program prompted Pure Energy to expand its place mineral claim area from 4,500 acres to over 8,000 acres.

Pure Energy Expands Clayton Valley Claim Area by 80% to Over 8,000 Acres

Pure Energy recently expanded its initial claim area by over 3,500 acres to secure areas of interest highlighted by the recent exploration work.  Pure Energy's wholly owned US subsidiary, Esmeralda Minerals LLC,  secured 963 acres of lithium placer mining claims, while the remaining 2,542 acres of lithium placer claims were acquired through a binding agreement with Nevada Alaska Minerals.  

Pure Energy's claims now total 8,037 acres, or an area approximately 10 km long by 2 km wide.  To provide a sense of scale, the area covered by wells at the Silver Peak lithium mine immediately to the north of Pure Energy's claim area cover approximately 2,300 acres.  

The claim extension was prompted by the recent exploration program.  The initial geophysics results indicated that an expansion of claim area eastward along the southern portion of our claim was warranted, illustrated in the figure above. 

These new claim areas will be included in future exploration plans as Pure Energy advances its development strategy towards developing a highly-valued lithium asset in the USA.




All of the images above were created from the Company's website on 1/15/2013
Visit the Pure Energy Minerals Ltd. website for more information:
www.pureenergyminerals.com



https://www.facebook.com/Pure-Energy-Minerals


https://twitter.com/pureenergyminer
http://www.pureenergyminerals.com/overview/why-lithium/
 

Why Lithium

1

Lithium chemical symbol = Li

2

A small soft silver-grey metal

3

The lightest metal in the periodic table

4

Li promises high operating voltage, low weight, and high energy-storage density

5

It's the perfect material for batteries—light and energetic

Lithium is a specialty industrial product bought and sold under contract, and the chemistry is specifically tailored to the customers needs. Supply contracts are useful towards predicting cash flow and securing project finance.

Although lithium is used in over 70 types of products, the growth in battery usage has driven lithium demand skyward. Electric vehicles and grid storage, such as Tesla’s Powerwall and Powerpack residential and commercial battery systems, are very high growth areas.

Demand is predicted to be as high as 125% of supply by 2020 driven by electric vehicles and grid storage.

The price of lithium has increased by 300% since 2003.

The development timelines of Pure Energy’s Clayton Valley Brine Project are aligned with the anticipated high-growth demand in lithium.

Lithium Supply & Demand

Driven by power storage demand (everything from power tools and handheld devices to electric vehicles), the global lithium industry should, we believe, enjoy a CAGR of roughly 12% through the end of the decade (starting in the mid/high single digits and accelerating afterwards as the EV market enjoys further penetration)”

“We estimate lithium consumption in 2013 was of the order of ~160k tonnes of LCE”

Supply will be short: There have been investor concerns about the supply side of the equation given a number of announced projects in the lithium industry. Upon a detailed review of the projects, we believe the risk is that demand will actually outstrip supply as we approach the later part of the decade, with demand potentially as high as 125% of total capacity”

*Source: Credit Suisse Equity Research. American Region Specialty Chemicals 27 May, 2014

Energy Storage

The most important use of lithium is in rechargeable batteries for electric vehicles, energy grid storage, mobile phones, laptops, digital cameras and other small electronic devices. Lithium is also used in some non-rechargeable batteries.

Lithium Alloys

Lithium metal is combined with aluminum and magnesium to form strong and lightweight alloys for armour plating, aircraft, trains and bicycles.

Optics, Glassware and Ceramics

Lithium is used to produce optics, glassware, and ceramics.

Industrial/HVAC

Lithium chloride is one of the most hygroscopic materials known, and is used in air conditioning and industrial drying systems.

Lubricants

Lithium stearate is used as an all-purpose and high-temperature lubricant.

Pharmaceuticals

Lithium carbonate is used in medications to effectively treat manic depression.

Lithium Market

Lithium hydroxide and lithium carbonate are both consumed in battery cathodes. The high energy content and light molecular weight of lithium makes it an ideal energy source for transportation.

Lithium Market – Source

Economically accessible sources of lithium are relatively rare, and commercial production comes from brine and rock.

Brine
Lithium-enriched brine is the most cost-effective form of lithium production and is responsible for most of the global production. Under specific climatic and geologic conditions lithium can be concentrated naturally in very salty water referred to as brine. This process is relatively rare, and the predominant theory suggests that volcanic lithium-rich ash is deposited, entrained into water by solution, and forms a lake in low-elevation desert depressions where evaporation exceeds precipitation. Over time, water is evaporated and the salts, including lithium, are concentrated and eventually infiltrate into the ground. Brines can be twice as salty as seawater, and under certain geologic conditions, can be contained underground by impermeable rock effectively forming a bathtub-like feature. These features can be a prolific source of accessible and concentrated lithium, and are known to be found in Nevada, Atacama (Chile, Bolivia and Argentina), and Tibet.

Hard Rock
Before 1997 lithium production was predominantly hardrock-sourced from the USA, Russia, Chile, Australia, China, Zimbabwe and Canada. However during 1997 Sociedad Quimica y Minera de Chile (“SQM”) began processing lithium product from continental brines in the Salara de Atacama region. The lower cost and larger volume of production of this brine-sourced lithium changed the shape of the industry, thus forcing the closure of many high-cost rock operations. The Greenbushes mine in Austrailia is the only significant lithium hard rock mine in the world, unique due to the highly enriched lithium mineralization.

http://finance.yahoo.com/news/pure-energy-minerals-appoints-walter-103000478.html
http://finance.yahoo.com/news/pure-energy-minerals-completes-fourth-135700896.html
https://finance.yahoo.com/news/pure-energy-closes-acquisition-clayton-140256133.html
 




 
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PostSubject
#361  Sticky Note http://www.stockhouse.com/news/newswire/2017/07/13/lithium-player-pure-energy-po Scotttrader80 07/23/17 01:43:50 AM
#363   If it werent for Musk, PEMIF wouldnt be Scotttrader80 07/24/17 08:32:45 AM
#362   Agreed, great article................ WOW ! DMOST 07/24/17 05:29:40 AM
#361   http://www.stockhouse.com/news/newswire/2017/07/13/lithium-player-pure-energy-po Scotttrader80 07/23/17 01:43:50 AM
#360   Keep buying PEMIF, when their mines come online Scotttrader80 07/20/17 10:41:05 AM
#359   http://www.pureenergyminerals.com/wp-content/uploads/2017/07/PE_PEA-update-JULY2 Dr Badman 07/18/17 11:18:28 AM
#358   Lithium for the battery's is and will be needed. DMOST 07/16/17 03:14:03 PM
#357   Pure Energy Minerals Commences Surface Exploration Program at DMOST 07/12/17 08:32:06 AM
#356   Water rights discussion on another board. Albermarle is Dr Badman 07/11/17 08:44:13 PM
#355   it will probably trade in a short range bullandbearwinner 07/10/17 04:14:27 PM
#354   IT'S PAST THE TIME PEMIF DMOST 07/08/17 06:02:07 PM
#353   https://youtu.be/baCwQkgrbbo clandy0805 07/07/17 12:45:54 PM
#352   Got in a week or two at 43 clandy0805 07/07/17 11:58:18 AM
#351   Sir, the ponds only recover 55% and in bullandbearwinner 07/06/17 03:10:02 PM
#350   With their new extraction process does this make Dr Badman 07/06/17 12:05:36 PM
#349   There is not margin to trade so not bullandbearwinner 06/28/17 03:41:59 PM
#348   Looks like traders are bailing big time. Dr Badman 06/28/17 03:27:03 PM
#347   I will be buying any cheap shares of bullandbearwinner 06/26/17 06:08:40 PM
#346   It will selling before lixxf anyway. There are bullandbearwinner 06/26/17 05:52:27 PM
#345   its $264 million net after tax if reading bullandbearwinner 06/26/17 05:49:10 PM
#344   This are the news that separates the investors bullandbearwinner 06/26/17 02:44:40 PM
#343   Would be smart for Tesla. Tesla is lithium. Dr Badman 06/26/17 12:56:21 PM
#342   That's why I'm wondering if Musk might make caedward 06/26/17 12:53:50 PM
#341   Yes. I'm wondering if that dampens any share Dr Badman 06/26/17 12:51:51 PM
#340   Construction to begin in 2019 with initial production caedward 06/26/17 12:26:13 PM
#339   Looks positive. Why the sell off? Timeline? Dr Badman 06/26/17 11:14:22 AM
#338   Time to sell the company to Musk? caedward 06/26/17 09:38:30 AM
#337   PEA just released. caedward 06/26/17 08:47:43 AM
#336   THE TIME IS NOW PEMIF DMOST 06/18/17 08:47:20 PM
#335   Well thats good, I wonder what his SEC Scotttrader80 06/14/17 12:21:26 PM
#334   New CFO. I also saw on another Dr Badman 06/14/17 12:18:25 PM
#333   Would be good to make .50 cents the Scotttrader80 06/11/17 06:24:40 PM
#332   Buy alert!!! check chart for very good botton bullandbearwinner 06/11/17 02:54:25 PM
#331   The Giga was being constructed in phases. DMOST 06/05/17 07:14:22 PM
#330   How long before Musks gigifactory is completed??? Thats Scotttrader80 06/05/17 04:29:23 PM
#329   YES SIR , DMOST 06/05/17 03:56:58 PM
#328   We're sitting on a frickin Gold....no wait...a frickin Dr Badman 06/05/17 03:22:25 PM
#326   THE TIME IS NOW PEMIF DMOST 06/02/17 11:18:49 PM
#325   LET'S GO PEMIF DMOST 05/27/17 12:02:19 AM
#323   pretty colors but Easter has passed Scotttrader80 05/26/17 11:57:15 AM
#322   THE TIME IS NOW PEMIF . DMOST 05/25/17 09:59:13 PM
#321   investorshub.advfn.com/uimage/uploads/2017/5/25/wdzhfprofile.PNG DMOST 05/25/17 08:52:43 PM
#320   If they were extracting the mineral in commercial Scotttrader80 05/25/17 06:32:49 PM
#319   THE TIME IS NOW DMOST 05/25/17 05:32:51 PM
#318   Surprised its not at $1.50-$2.75 level in anticipation bullandbearwinner 05/25/17 05:03:42 PM
#317   Ten percent! Good stuff! biff2 05/25/17 04:11:49 PM
#316   Cornering the Clayton valley play area ya? Thats Scotttrader80 05/23/17 10:41:23 PM
#315   I might have to grab some of these sunshinesmiles 05/23/17 08:45:36 PM
#314   its a two heads dragon play ready to bullandbearwinner 05/23/17 03:42:58 PM
#313   Take a look at LIXXF, then look at Scotttrader80 05/22/17 11:23:13 PM
#312   I can probably pick up around 25-30k if Wayalife 05/19/17 07:08:43 PM
PostSubject