|Valleyview Project (NW Alberta)|
|Over 120 active wells|
|100 percent mineral rights to property|
|Sample testing conducted in 2011 has shown 70 - 85 ppm lithium|
|Other minerals include calcium, magnesium, iodine, bromine, and potassium|
Lithium Exploration Group has earned interest in acres with lithium contained in basinal brines of the Western Canadian Sedimentary Basin. A 1995 report authored by S. Bachu, M. Brulotte and L.P. Yuan of the Alberta Research Council, "Resource Estimates of Industrial Minerals in Alberta Formation Waters," discusses the area as having potential for very large resources of lithium within formation waters. The property acquired — considered an advanced-stage lithium asset with historical resource and near-term production potential — covers a large portion of the area deemed "producible" for lithium by the government study.
More recently, in January 2010, D.R. Eccles and G.M. Jean of the Alberta Geological Survey (AGS) published "Lithium Ground and Formation Water Geochemical Data," with the intention of enabling present and future companies to better evaluate their targets and characterize their resource estimates by being able to distinguish between background and anomalous concentrations of lithium throughout Alberta. The report, researched during 2009, is a compilation of ground- and formation-water geochemical lithium data from government sources and from AGS data holdings, resulting in 1511 records.
In the 1995 report, the Alberta Research Council provided a "historical resource estimate. The estimated concentrations of lithium, between 50 and 200 ppm, compare favorably with lithium brine deposits in Nevada that are currently in production. The project can produce battery-grade lithium carbonate, as well as other lithium products, giving flexibility in how resources are monetized over time.
Moreover, of the more than 1,511 records in the AGS study, the well with the highest concentration of lithium (140mg/L or ppm) is located nearly in the center of the Lithium Exploration Group property, based on longitude and latitude coordinates. In addition, a second well in the top 50 is located approximately a mile from that well.
98 oil and gas wells currently exist on the Valleyview property, 70 percent of which are in active operation. Oil and/or gas coexists within the same aquifers as Lithium Exploration Group's lithium- and potassium-bearing brines. In recovering the oil and gas, brine is also drawn to the surface, but generally in much larger quantities.
The energy operator must process the brine and then separate it from the oil and/or gas. When this process is completed, the brine is returned to the aquifer. Given these circumstances, potential exists for a symbiotic relationship between other energy companies and Lithium Exploration Group, with a result being that Lithium Exploration Group may never have to even drill a hole to extract its own resource. Barrick Energy Inc, Paramount Resources, Signalta Resources Ltd, Penn West Petroleum Ltd and Canadian Natural Resources Ltd are among the companies actively operating wells on property for oil and gas deposits. Lithium Exploration Group has rights to any minerals produced from their activity, and is prepared to strike strategic partnerships to underwrite the costs of exploration. In addition to lithium and potassium, other rare metals and minerals on the property include calcium, magnesium, iodine, and bromine.
The project is located on a significantly larger property than most competition, representing a long-term opportunity for continued exploration and production beyond existing wells with proven reserves. In addition, the Valleyview project is located in mining-friendly jurisdictionswith access to mining infrastructure and expertise.
Cautionary Note to US Investors
The United States Securities and Exchange Commission permits US mining companies, in their filings with the SEC to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this website, such as “measured”, “indicated”, and “inferred resources”, which the SEC guidelines strictly prohibit US registered companies from including in their filings with the SEC. US Investors are urged to consider closely the disclosure in our Form S-1 or Form 10-K which may be secured from us, or from our website at http://www.sec.gov/edgar.shtml.