September 2, 2022
E3 Lithium Ltd. (TSXV:ETL, BUY, C$8.20 target, Koby Kushner) reported that it has completed the initial two brine production wells for the purpose of evaluating lithium at its Clearwater Li-brine project in Alberta. The first well, which we recently visited (read more), was drilled to a depth of 2,670m and retrieved 36.9m of core samples from five zones within the ~200m thick Leduc reservoir (read more). The thickness and pressures were found to be in line with expectations. The second well was located ~20km SE of the first well. Brine samples from both wells have yet to be analyzed to verify lithium concentrations. These wells confirm the geology and reservoir properties of the zone, thus boosting confidence in the current 23.4 Mt LCE inferred resource at Bashaw (read more). It also supports the company’s upcoming goal of upgrading its resource to measured and indicated. In our view, E3 is taking the right steps to de-risk its brines and DLE technology, having recently announced the first commercial-scale manufacture of its sorbent material, which led to >97% Li recoveries (read more), ahead of initial production of 20,000 tpa LHM by 2025-26. Read more
