We never tell investors to buy or sell a stock mining, or otherwise. We don’t do that around here – never did.
But we do tell you what we like, and last month I told you about a little resource play that looked interesting.
E3 has demonstrated the ability to leverage the existing oil and gas fields’ infrastructure to reduce the exploration costs and development risks compared to conventional exploration for lithium in salars or hard rock deposits. No new drilling and infrastructure building are required for current and proposed exploration. With the trend of decreasing oil and gas production in the area, E3 may be able to acquire infrastructure for minimal cost. While lithium concentrations found in petro-lithium projects are generally at the lower end of the current lithium industry production grade curve (around 80 mg/L), it is important to understand that the Leduc reservoir has the capacity to contain tens of billions of litres of lithium-bearing brines with extremely high flow rates.
I then said:
This is the first time I’ve taken a serious look at E3, and the news warrants further glances as news rolls out. A new 43-101 resource estimate will undoubtedly make the thing firmer, so it’s worth a spot on your watchlist.
So, we told you about it at $0.40. The next day, this happened:
If you got on board when we posted about it, good work. Enjoy your double.
Tomorrow, this happens:
E3 Metals Completes First Petro-Lithium Inferred Mineral Resource of 1.9 Mt LCE on the Clearwater Property
- The Central Clearwater Area contains an Inferred Mineral Resource of 4.6 billion m 3 of brine formation water at an average grade of 77.4 mg/L lithium calculated as total producible brine
- This is calculated as 1.9 million tonnes of lithium carbonate equivalent (LCE)
- 35 years of available production of brine can be supported at an equivalent rate of 50,000 tonnes/year LCE over the Central Clearwater Resource Area
- The Central Clearwater Resource Area is 943 km 2 representing 10% of the total Alberta Lithium Project Area
That’s right, E3 has delivered its first NI 43-101. On schedule. As promised.
Release sent out to folks on their list just now (and wires by the AM):
Vancouver, BC – November 15, 2017 – E3 METALS CORP. (TSX-V: ETMC, FSE: OU7A, OTC: EEMMF) is pleased to announce that it has completed its first National Instrument 43-101 (NI 43-101) Inferred Mineral Resource Estimate (the “Resource”) of 1.9 million tonnes lithium carbonate equivalent (LCE) from 4,617,079,087 m 3 (4.6 km 3 ) of brine formation water at an average grade of 77.4 mg/L for the Central Clearwater Resource Area, located within a portion of the Company’s Clearwater Property.
The Resource was prepared for the Company by Raymond P. Spanjers, P.G., of North Carolina, USA, Gordon MacMillan, P.Geol., of Alberta, Canada and Wayne Monnery, P.Eng., of Alberta, Canada, all “qualified persons” within the meaning of NI 43-101 and independent of the Company.
The NI 43-101 Technical Report in respect of the Resource will be filed on SEDAR and the Company’s website within 45 days.
And if you think that means it’s time to sell and take your profits, guess again; there’s more news coming. From the CEO via email:
We are currently working at completing our second resource estimate in the coming weeks on the North Rocky Property.
Yep. Another one. That means the resource will grow again. By how much, we don’t know, but the company is expanding outward and has a lot of ground left to cover.
Beyond that, E3 said just last week that they’re into their second phase sample program, so we’d expect more news beyond the resource estimates being talked of to be not far behind.
What’s interesting is, if E3 can manage to push into the dilemma of how to process the lithium being talked about in any sort of successful way (which is always a challenge for lithium producers, if not an insurmountable one), that will open up Alberta in a massive way, because there’s a fair amount of lithium tied into petro-properties traditionally, enough that it sometimes gets in the way.
And enough that E3 got their hands on a load of rights without too much push back.
Now eyes are on the play, and results are going to drive value going forward.
— Chris Parry
FULL DISCLOSURE: There is no commercial relationship between E3 and Equity.Guru.