The geology and controls of mineralization in the immediate area of the Liberty One Lithium property are reasonably well known as a result of mapping and extensive oil and gas drilling. The presence of the adjacent Cane Creek mine which has been producing potash for 45 years uses a similar process as envisioned for mining lithium at Liberty One indicates that this form of production should be feasible. The recovery of lithium and other products from the supersaturated brines should also be feasible since globally, similar brines are the primary source of the world’s lithium.
While not yet sufficiently well-defined for mining purposes, the lithium resource appear to be extensive, based on historic oil and gas well data, and on brine studies from the 1960’s.
Available data, indicates clearly that mineralization exists and represents a substantial resource as shown by the drilling, sampling and geologic modeling done by prior operators on the property. Historic resource estimates are not currently NI 43-101 compliant, but the Company aims to work towards compliance by additional drilling and examination of additional data by a “Qualified Person.”
As a result of a review of current prices and near-term market projections for the anticipated products, particularly lithium, as well as advances in recovery technology beyond the basic methods used at the adjacent Cane Creek potash mine, it is the Company’s opinion that this property has a reasonable likelihood of being profitably exploited.
The available data from the area of the Liberty One Lithium property is a strong indication of the potential for it to become a producer of lithium and other products. In order to confirm those indications, additional work will be necessary.