Canadian lithium deposit explorer LithiumBank Resources Corp (TSXV: LBNK) has announced that its Park Place project in Alberta has reported an inferred brine lithium resource of 21.7 million tonnes of lithium carbonate equivalent (LCE). This amount ranks first in North America, with an average grade of 80.2 mg/L, making it the foremost in Alberta. Combined with the Boardwalk project, the company’s total brine lithium resources amount to 27.78 million tonnes of LCE, with an average grade close to 70 mg/L.
Currently, the world’s developed lithium resources are categorized into two main types: salt lake brine and hard rock. Brine lithium mines account for 65% of the world’s proven lithium resources. Due to its ease of extraction and lower costs, brine lithium products represent about 75% of lithium salt production.
Rob Shewchuk, CEO of LithiumBank, stated that this discovery helps position Canada as a major lithium supplier in North America. The company will next focus on subsequent brine sample assaying, completing lithium extraction testing, and initiating a Preliminary Economic Assessment (PEA).
Apart from LithiumBank, other lithium projects in Canada include Highwood Asset Management Ltd (TSX: HAM)’s early-stage Drumheller project with an inferred resource of 18.1 million tonnes of LCE at a grade of 20 mg/L, and E3 Lithium Ltd (TSXV: ETL)’s Clearwater project with a resource of 16.9 million tonnes at a grade of 74 mg/L.
In the green and low-carbon energy transition, critical mineral resources hold significant strategic value. Canada is the only Western country with plentiful cobalt, graphite, lithium, and nickel reserves, essential for creating future batteries and electric vehicles. In 2021, the Canadian Ministry of Natural Resources announced a list of 31 critical minerals while tightening the approval process for foreign investments in this sector. For example, in 2022, Canada ordered three Chinese companies to divest their investments in Canadian critical mineral companies.
Over the past year, lithium prices have fallen by two-thirds, with lithium carbonate prices dropping to $13,800/ton by mid-June. Over the past decade, lithium prices have experienced several “bull and bear” cycles, each significantly affecting the industry landscape. In 2023, the supply-demand structure of the lithium salt industry fundamentally changed, with the entire lithium battery industry chain falling into a state of excess capacity.
LithiumBank’s stock closed down 4.8% at 0.77 CAD on Monday, near the lower end of its 12-month trading range of 0.71-1.41 CAD. The company’s market value stands at 38.4 million CAD (28.1 million USD).
