VANCOUVER, BC--(Marketwired - Aug 20, 2015) - Pure Energy Minerals Limited (TSX VENTURE: PE) (FRANKFURT: A111EG) (OTCQB: HMGLF) (the "Company" or "Pure Energy") is pleased to announce that the Company is in receipt of an Order-Of-Magnitude cost estimate study (OOM) by Tenova Bateman Technologies ("Tenova") for Pure Energy's Clayton Valley Lithium Brine Project in Nevada. The purpose of the study is to evaluate the capital expenditures (CAPEX) and operating expenses (OPEX) for producing 22,700 ton per annum dry lithium hydroxide monohydrate. The OOM report is a continuation of lithium processing work that Pure Energy has done with Tenova on brine collected from Clayton Valley earlier this year (see news release March 4, 2015).
The results of this work indicate that Pure Energy's Clayton Valley Project, when combined with Tenova's LiSX™ selective lithium extraction technology, has the potential to be a low-cost producer of battery grade lithium materials.
The OOM capital expenditure (CAPEX) is estimated at approximately US$120M, and was compiled using Tenova's in-house database for the main mechanical equipment and factored bulk commodities (piping, electrical, instrumentation, concrete and steel) using typical in-house percentages derived from historical data of similar installations. The OOM operating expenditures (OPEX) evaluation was based on reagents and utility prices received from Pure Energy and is estimated at approximately US$1900/ton of lithium hydroxide monohydrate (LiOH-H2O).
The above costs include design, procurement, construction and commission of infrastructure within the plant area only, and exclude all costs associated with permitting, site preparation, well field and associated infrastructure, water and electrical supply, roads, cooling, central control system elements, discharge facilities and various other external components.
Robert Mintak, Pure Energy's CEO, commented: "We are very happy with the results of this Order Of Magnitude report. The report from Tenova indicates the potential for Pure Energy's Clayton Valley project to become one of the lowest cost producers of battery grade lithium materials. As the gap between domestic supply and demand evolves for end users, the significance of securing a sustainable, reliable source of lithium becomes more critical. Pure Energy intends to continue work with Tenova and others to develop technologies to bridge this demand and supply gap."
Tenova's advanced proprietary lithium processing technology, LiSX™, extracts lithium from brine and various waste streams. This revolutionary 'total solution' combines lithium processing and recovery capabilities in an integrated process that eliminates the use of traditional large-scale evaporation ponds, resulting in a processing time of less than 12 hours with a remarkable > 99% lithium recovery. Utilizing a small footprint with low energy and water requirements, the LiSX™ process allows for reinjection of the brine back into the ground after the lithium is extracted, resulting in a sustainable practice that is environmentally favorable and more competitive as compared to traditional methods. The LiSX™ process is versatile and may be rapidly reconfigured to produce various customized high-purity ( > 99.9%) lithium end-products, including carbonate, chloride and hydroxide.
We note, further to Pure Energy's announcement July 28, 2015 of an inferred resource estimate on the Project of 816,000 metric tons of lithium carbonate equivalent, that Pure Energy has not yet established a probable or proven mineral reserve in respect of the Project. The results of the OOM study are based on testing conducted by Tenova Bateman on lithium brine collected from well CV-1, and may not be indicative of brines found elsewhere within Pure Energy's claim boundary. In addition, further exploration work is required to increase the understanding of the resource's lithium brine production capability to achieve the production limits outlined in the OOM.
About Pure Energy:
Pure Energy is a lithium-brine resource developer with a focus on becoming the lowest cost, lithium supplier for the burgeoning lithium battery industry in North America. Pure Energy is currently focused on the development of our prospective Clayton Valley South Lithium Brine Project, which has the following key attributes:
Three main claim areas, covering approximately 8000 acres in the southern half of Clayton Valley, Esmeralda County, Nevada, located next to the only producing lithium operation in the United States; Albemarle's Silver Peak lithium brine mine.
Through drilling and exploration work to date, the Company has established an Inferred Resource (in accordance with NI 43-101) of 816,000 metric tonnes of Lithium Carbonate Equivalent (LCE).
The Company is undertaking pre-feasibility level work to better understand the economics and feasibility of using modern processing techniques to convert the Clayton Valley South brines into the high purity lithium products required for new energy storage uses.
Pure Energy is aligned with global technology partners focused on innovative solutions for lithium brine processing. Through process testing work on Clayton Valley brines with Tenova Bateman, the Company has received lab scale results achieving > 99.9 % lithium recovery and produced a LiCl solution with a purity greater than 99.9%. Tenova's LiSX technology works on brine with Li concentrations as low as 14 PPM.
The Company has recently shipped brine samples to Korean Multi National POSCO's research facility to begin process testing using POSCO's proprietary lithium extraction technology.
About Tenova Bateman Technologies:
Tenova Bateman Technologies is part of the Tenova Mining & Minerals Division of Tenova and offers advanced solvent extraction (SX) solutions and proprietary technologies for the mineral and metals industries, complimented by in-house state-of-the-art laboratory and pilot plant facilities. Tenova is a worldwide supplier of advanced technologies, products and engineering services for the metals and mining and minerals industries.
On behalf of the Board of Directors
"Robert Mintak"
Chief Executive Officer
Neither 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.
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