Geology

The Liberty One Lithium Utah property is underlain by a thick series of Mesozoic and Paleozoic sedimentary rocks which make up the Paradox Basin of the north central Colorado Plateau. The Paradox Basin is a large sedimentary basin with a NW-SE long axis. Economic interest in this area has centered on oil and gas production from strata of Devonian, Mississippian and Pennsylvanian age. Regional subsidence in early Pennsylvanian time created a large sedimentary basin with a restricted marine environment, resulting in multiple thick deposits of evaporate minerals including salt and potash. This Pennsylvanian stratigraphic unit is named the Paradox Member of the Hermosa Formation, which contains salt and potash and interbedded dolomite, shale and siltstone. There are several salt and potash horizons in the Paradox, but only one potash mine has been developed, the Cane Creek Mine.

During oil and gas exploration there were several blow-outs caused by the intersection of brines under significant pressure within the Paradox unit. These brines were initially considered a nuisance to drilling but were found to often be super-saturated brines containing high amounts of potash, sodium chloride, magnesium chloride, lithium, bromine, boron and other potentially payable minerals. Only a few holes were drilled specifically to test these brines and all supported the conclusion that these brines could be an economically important resource. The Liberty One Lithium property could potentially produce from both the brines and from solution mining of the potash beds.