LithiumBank Unveils Significant Resource Increase for Boardwalk Lithium Project

LithiumBank Resources Corp. has announced a substantial update to its mineral resource estimate for the Boardwalk Lithium Brine Project in west-central Alberta, revealing a 30% increase in overall lithium resources and an 18% rise in lithium grade. This development positions the company as a key player in the burgeoning lithium market, with significant implications for both economic and operational efficiencies.

A New Benchmark in Lithium Resources

The updated technical report, filed on February 20, 2025, highlights a measured and indicated resource of 5,195,000 tonnes of lithium carbonate equivalent (LCE) within the Leduc Formation, with an average grade of 81.6 mg/L lithium. This represents a 30% increase from the previous estimate, making Boardwalk the highest-grade lithium brine resource in Alberta. The inferred resources, which include contributions from the Beaverhill Lake Group/Swan Hills Formation, total 2,777,000 tonnes LCE at a weighted average of 79.0 mg/L lithium.



Driving Factors Behind the Increase

Several key factors contributed to this significant resource increase:

1. Enhanced Drilling and Testing: The "10-06" drilling/testing program provided critical data that elevated lithium grade estimates, identifying higher-grade zones within the Leduc Formation.
2. Refined Aquifer Geometry and Porosity: Improved understanding of the Leduc Formation’s aquifer geometry and effective porosity allowed for more accurate volume calculations.
3. Confirmation of Lithium in Deeper Formations: The discovery of lithium in the Beaverhill Lake Group/Swan Hills Formation added 1,649,000 tonnes LCE to inferred resources at 78.1 mg/L.
4. Advanced Subsurface Reservoir Modeling: A detailed subsurface reservoir model improved the accuracy of resource estimation and aided in planning future engineering studies.
5. Quality Assurance/Quality Control (QA/QC): Rigorous QA/QC protocols, including analysis by AGAT Laboratories (ISO 17025 certified), ensured data reliability.

Economic and Operational Benefits

The 30% increase in overall lithium resources and the 18% increase in lithium grade bring several economic and operational benefits to LithiumBank:

1. Higher Production Capacity and Revenue Potential: The increased resource base supports higher long-term production volumes, enhancing revenue potential. The updated PEA from January 2024 projected 34,005 tonnes per year of lithium hydroxide monohydrate (LHM) over 20 years, which could be sustained or even scaled further with the increased resource base.
2. Reduced Operational Costs: The higher lithium grade reduces processing costs, as higher-grade brine requires less volume to be processed to achieve the same lithium output. This lowers energy, water, and reagent usage, contributing to a 34% reduction in operational expenditures to USD $4,588 per tonne LHM.
3. Enhanced Financial Metrics: The increased resource base and grade could improve financial metrics such as NPV and IRR. The prior PEA demonstrated a USD $3.7 billion NPV8 (pre-tax) and a 25% IRR, which could be further enhanced with the larger resource base.
4. Competitive Advantage: Boardwalk now hosts Alberta’s highest-grade lithium brine resource at 81.6 mg/L, surpassing competitors in the region and positioning LithiumBank favorably against projects with lower grades.

Operational Efficiency and Sustainability

The higher lithium grade and increased resource base also bring several operational benefits:

1. Efficient Resource Extraction: The higher lithium grade reduces the volume of brine required for processing, minimizing pumping and handling costs. The subsurface reservoir model allows for optimized well network planning, ensuring drilling targets the highest-grade zones.
2. Expanded Exploration and Development Opportunities: The inferred resources in the Beaverhill Lake Group/Swan Hills Formation open new exploration avenues, enabling vertical or lateral expansion of operations without significant new infrastructure.
3. Infrastructure Leverage: The project benefits from existing infrastructure, including all-weather roads, electrical transmission lines, and a skilled labor force from decades of oil and gas activity. This reduces capital expenditure (CapEx) for site preparation and logistics.
4. Sustainability and Cost Savings: The cDLE® technology, already integrated into the PEA, uses lower-cost reagents and recycles 80% of acid, reducing waste and operational expenses. The higher grade further enhances this efficiency by minimizing the volume of brine needing treatment. The PEA’s proposed on-site power generation using high-efficiency gas turbines with steam cogeneration (and future hydrogen integration) lowers the project’s carbon footprint while reducing energy costs.

Conclusion

The 30% resource increase and 18% grade improvement at Boardwalk provide LithiumBank with a robust foundation for enhanced economic returns and operational efficiency. These gains position the company to capitalize on growing lithium demand while reducing costs and accelerating project timelines, supported by strong infrastructure and advanced technology. As the lithium market continues to grow, LithiumBank’s strategic investments in technology and resource development are likely to pay off, solidifying its position as a leader in the industry.