- Reedy Lagoon (RLC) restarts exploration at the Alkali Lake North lithium-brine project in Nevada, USA
- Geophysical survey work is underway and is expected to extend the company’s 3D AMT cover over its additional claims staked earlier this month
- RLC put exploration for lithium brines in Nevada on hold as it sought a method of extraction that doesn’t rely on the use of evaporation ponds
- Now the company says there are strong indications that lithium-bearing brines in Nevada will soon support commercial extraction without evaporation ponds
- Shares have been trading 12 per cent higher at 2.8 cents at 3:24pm AEST
Reedy Lagoon (RLC) has restarted exploration at the Alkali Lake North lithium-brine project in Nevada, USA.
Geophysical survey work is underway with the data adding to information obtained from an Audio Frequency Magnetotelluric survey conducted in 2018.
Further, the survey is expected to extend the company’s 3D AMT cover over
the additional claims which were staked earlier this month.
The company had put exploration for lithium brines in Nevada on hold as it assessed alternative methods of extraction without the use of evaporation ponds.
Using evaporation ponds is said to involve long periods of pumping over the ponds to condition the brines, and concentrates the lithium through evaporation, resulting in the loss of water in the brines, which is reportedly a limited resource in Nevada.
RLC believes the most efficient method of producing lithium chemicals for use in batteries is direct extraction where lithium-bearing ground water is pumped through a process plant which extracts the lithium while enabling most of the water to be returned into the ground.
Direct extraction is said to be dependent on the brine composition as well as lithium grade.
For this reason, the company is searching for lithium brines in Nevada as it believes these brines have compositions that are more amenable to direct extraction than those found elsewhere in the world.
Reedy Lagoon is also encouraged by recent moves towards direct extraction by other explorers in the state.
In particular, Toronto Exchange stock Pure Energy Minerals recently announced plans to construct a pilot plant for direct extraction at its Clayton Valley lithium project in Nevada. It also said Schlumberger, its strategic investor, had entered a collaboration agreement with Panasonic Energy of North America to develop a direct lithium extraction and production process.
RLC considers the announcements “strong indications” the lithium-bearing brines in Nevada might soon support the first commercial extraction of lithium from brine without the use of evaporation ponds.
It also bolsters the company’s early assessment that the composition of the brines in Nevada is amenable to processing by direct extraction techniques.
Plans are in place for follow-up geophysical surveys, including shallow seismic reflection, to better define the lithium-brine targets at both its Alkali Lake North project and its Clayton Valley project.
Shares were trading 12 per cent higher at 2.8 cents at 3:24pm AEST.