Name of the Project
Clayton Valley lithium project.

Location
Esmeralda County, Nevada, in the US.

Project Owner/s
Pure Energy, and partner Schlumberger New Energy, the operator of the project. 

Project Description
The Clayton Valley lithium deposit is a salty groundwater brine, with high levels of lithium contained in a series of aquifers. The brine is ‘mined’ by drilling boreholes into the aquifers and pumping the brine to surface for lithium removal.

A positive prefeasibility study (PFS) envisages a mine with an average production of 15 000 t/d to produce 27 400 t/y lithium carbonate equivalent over a mine life of more than 40 years.

Production is based on probable mineral reserves of 222-million tonnes, averaging

1 141 parts per million lithium carbonate equivalent.

In March 2021, Schlumberger New Energy announced its plans to develop a lithium extraction pilot plant at the Clayton Valley project through its wholly owned subsidiary NeoLith Energy.

The Bureau of Land Management (BLM) approved the plan of operations after completion of the required engineering design, environmental studies and public comment period. Additional permit applications are in progress, with the Nevada Division of Environmental Protection, Bureau of Mining Regulation and Reclamation (NDEP-BMRR).

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The PFS estimates an after-tax net present value, at an 8% discount rate, of $1.05-billion and an internal rate of return of 25.8%, based on a price of $9 500/t for lithium carbonate.

Capital Expenditure
Preproduction capital is estimated at $493-million.

Planned Start/End Date
Not stated.

Latest Developments
Pure Energy has reported that Schlumberger has received approval from the BLM for a plan of operations covering the construction and operation of a pilot plant at the Clayton Valley project.

Schlumberger has also received permit approval for the associated reclamation plan from the NDEP-BMRR.

Key Contracts, Suppliers and Consultants
Continental Metallurgical Services (PFS).

Contact Details for Project Information
Cypress Development Corp, tel +1 604 608 6611 or email info@pureenergyminerals.com.