Lithium Exploration Group, Inc. (LEXG) is a miner company based in the United States. The company is engaged primarily in the business of developing potential of lithium brines in Canada. The demand for Lithium has been on the rise globally over the last several years with an increasing demand for green technologies and alternative power sources.
Lithium Exploration Group is geared to exploit the growing demand for lithium, which is among the most versatile metals on earth. The company not only has access to properties with high lithium content, but it also has in place key connections in ready markets for lithium-based end products.
The company has existing relationships with some of the major manufacturers of lithium based battery products in India and China. Apart from the growing consumer awareness about greener sources of energy, the governments around the world are keen on making investments to promote the development of lithium based technologies and bringing legislation to support their use as an environmentally safer alternative to fossil fuels. At the moment, the efforts of Lithium Exploration Group are concentrated on its proven lithium reserves in the oilfield brine regions of western Canada. The company is poised for growth, with acquisition plans for properties in other lithium-rich areas around the world.
Lithium Potential in Western Canada
Lithium Exploration Group has strategic interests in the lithium-rich basinal brines of the Western Canadian Sedimentary Basin. “Resource Estimates of Industrial Minerals in Alberta Formation Waters,” a report authored by S. Bachu, M. Brulotte and L.P. Yuan of the Alberta Research Council points out that the region has the potential for very significant resources of lithium within formation waters. The property acquired by the company covers a major portion of the area deemed “lithium producible” according to the government study.
Another report titled “Lithium Ground and Formation Water Geochemical Data,” published in January 2010 by D.R. Eccles and G.M. Jean of the Alberta Geological Survey (AGS) aims to help the current and future companies better assess their targets and characterize their lithium resource estimates. The Alberta Research Council provides a historical resource estimate of about 2.8 billion pounds of Li2O. These estimates are based on nearly 3,800 core analyses and permeability studies. The estimated concentration of lithium in these regions compare favorably with Nevada’s lithium brine deposits that are in production at present.
Methods of Recovery in Valleyview
The company’s Valleyview property currently includes 98 oil and gas wells, out of which nearly 70 percent are actively operational. Oil and gas coexist within the same aquifiers as the company’s lithium and potassium bearing brines. In the process of the recovery of oil and gas, brine also gets drawn to the surface, but usually in much bigger quantities. The energy operator is required to process the brine and separate it from oil and gas. Once this process is completed, the brine goes back to the aquifer.
In this situation, there is good potential for a synergistic relationship between Lithium Exploration Group and other energy companies. The net result is that Lithium Exploration Group may not ever be required to drill even a hole to extract its own resources. Canadian Natural Resources Ltd, Signalta Resources Ltd and Barrick Energy Inc. are some of the companies that are already engaged in gas and oil extraction on the property. Lithium Exploration Group owns the rights to any minerals produced from their activity. It is in a position to establish strategic relationships to underwrite the costs of such exploration. The property also contains other rare minerals and metals such as magnesium, calcium, bromine and iodine, apart from lithium and potassium.
Lithium Exploration Group’s project is situation on a considerably larger property compared to other competitors. This represents a long-term lucrative opportunity for exploration and product beyond the existing identified wells with proven lithium reserves. Furthermore, the Valleyview project is situated in jurisdictions that are mining-friendly and provide convenient access to mining infrastructure and technical expertise.