{"id":81895,"date":"2015-12-03T05:57:43","date_gmt":"2015-12-03T10:57:43","guid":{"rendered":"http:\/\/countingpips.com\/?p=81895"},"modified":"2015-12-03T05:57:43","modified_gmt":"2015-12-03T10:57:43","slug":"pure-energy-minerals-tesla-posco-tenova-bateman-a-force-to-be-reckoned-with","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2015\/12\/pure-energy-minerals-tesla-posco-tenova-bateman-a-force-to-be-reckoned-with\/","title":{"rendered":"Pure Energy Minerals+ Tesla+ POSCO+ Tenova Bateman, a Force to be Reckoned With"},"content":{"rendered":"
December 3, 2015<\/div>
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By Peter Epstein, CFA, MBA \u00a0 \u00a0 \u00a0<\/b>http:\/\/EpsteinResearch.com<\/span><\/a>\u00a0\u00a0 \u00a0 \u00a0<\/b>@peterepstein2<\/span><\/a><\/b><\/u>\u00a0\u00a0 \u00a0\u00a0<\/b>\u00a0Linked-In<\/span><\/a><\/b>\u00a0<\/span><\/div>\n

Anyone remotely familiar with the lithium juniors space has heard of\u00a0Pure Energy Minerals,\u00a0(TSXV: PE) (FRANKFURT:\u00a0AHG1: GR) (OTCQB:\u00a0HMGLF) and no doubt the sizzling hot, new kid on the block,\u00a0Lithium \u201cseXy\u201d Energy Corp,\u00a0featuring legendary natural resource investors\u00a0Frank Guistra\u00a0&\u00a0Paul Matysek\u00a0and of course there\u2019s\u00a0Dajin Resources,\u00a0currently the cheapest way\u00a0(lowest market cap<\/em>) to gain exposure to lithium love in both Nevada and Argentina.\u00a0Western Lithium Corp. is another noteworthy junior, also with prospective assets in Nevada & Argentina.<\/p>\n

The number of publicly listed companies owning or controlling property in Nevada amenable to lithium exploration continues to grow. In addition to the 4 mentioned, there\u2019s\u00a0Nevada Sunrise Gold,\u00a0Ashburton Ventures,\u00a0Lithium Corporation\u00a0and\u00a0Ultra Lithium,\u00a08 in total. Lithium X Energy, Nevada Sunrise & Ashburton are new entrants this year. Six are pure-play lithium juniors, each with a combination of strengths and weakness. Experience of management & financial backers, quality & size of lithium resource(s), location (county\/basin<\/em>), stage of exploration \/ process development and operating technology \/ process are of paramount importance. Why is the lithium sector such a big deal? I asked Simon Moores of\u00a0Benchmark Mineral Intelligence<\/a>\u00a0why lithium pricing is moving up even as other minerals & metals have moved markedly lower, quote,<\/p>\n

\u201cLithium was different to all other minerals & metals this year, while every other\u00a0commodity\u00a0price fell, the lithium price was rising. This is because it serves one of the first industries\u00a0driven by\u00a0hi-tech markets, not an industrial ones.\u201d<\/em><\/p>\n

Pure Energy Minerals has a lot going for it, making it one of the more appealing investment opportunities in the lithium sector. First off, readers can check off the management box. The Company is stacked with 10 highly experienced and successful individuals from the ranks of Management, Board and Technical Advisory. Seven have decade(s) of expertise in lithium and\/or advanced degrees in Geology, Hydrology and Geochemistry. Several have substantial industry contacts, adroitly drawing in strong financial backers. The Company\u2019s flagship\u00a0Clayton Valley South<\/a>\u00a0project is contiguous to the only lithium producing enterprise in North America \u2013\u00a0Albemarle\u2019s\u00a0Silver Peak Brine project. At 9,000 + acres, the property is the largest in the Esmeralda County\u00a0area. Pure Energy boasts an\u00a0816,000 Mt Lithium Carbonate Equivalent, NI 43-101 compliant\u00a0Inferred\u00a0resource\u00a0and a cornerstone supply agreement<\/a>\u00a0with\u00a0Tesla Motors, making it one of just two juniors at an advanced exploration \/ early process development stage, the other is Western Lithium.<\/p>\n

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If readers remember little else, please recognize that Korean Multi-national\u00a0POSCO\u00a0and\u00a0Israel based process technology company\u00a0Bateman Advanced Technologies\u00a0have demonstrated strong votes of confidence in Pure Energy\u2019s Clayton Valley South project. The Company also enjoys proactive partnerships with world-renowned\u00a0SRI International\u00a0and the\u00a0University of British Columbia. It\u2019s the technology collaborations with POSCO & Tenova Bateman that I highlight and elaborate on, a tremendously important differentiating\u00a0factor. For the past 50+ years brine harvesting of lithium via massive evaporation pools has been the norm in Nevada and in the Lithium Triangle of Chile, Argentina & Bolivia. Dating\u00a0back much further is hard rock mining of\u00a0pegmatites containing the lithium bearing silicate spudomene. Hard rock extraction has proven to be increasingly energy intensive, costly and less environmentally friendly compared to newer approaches.<\/p><\/blockquote>\n

The fact that Pure Energy is able to engage in meaningful interactions with POSCO & Tenova Bateman is testament to the quality of its Clayton Valley South project and stage of exploration \/ process development. In coming years, the technologies emerging lithium producers chose to incorporate into flow sheets will make or break them. Next decade, brine harvesting and conventional hard rock mining will begin to fall by the wayside as superior technologies come to fruition. I liken this situation to events in the uranium sector where In-Situ Recovery techniques have made substantial inroads at the expense of conventional hard rock mining. POSCO & Tenova Bateman are leaders in paradigm shifting technologies. Both companies are cutting their teeth on Clayton Valley lithium brines and brines from a few other projects including Western Lithium\u2019s\u00a0Cauchari-Olaroz in Argentina. ASX listed\u00a0Orocobre Ltd. recently announced it has entered into an MOU with Tenova Bateman for that company\u2019s Argentinian lithium project.<\/p>\n

Tenova Bateman\u2019s LiSX technology\u00a0[Awesome video here<\/a>]<\/p>

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Get ready, an attempt will soon be made to illuminate these two groundbreaking (actually neither breaks ground<\/em>) technologies. A detailed, technical assessment is beyond the scope of this article. Essential in understanding what each technology is tasked to deliver, is understanding the shortfalls of brine harvesting and hard rock mining. Each suffer from a number of challenges;\u00a0large upfront capital outlays, long operating cycles, (brine), inferior recoveries, unattractive environmental footprints, energy intensity, operational inflexibility and weather related risks. The new age of technology promises to cut operating cycles to hours, be greener and less energy intensive. Commercial scale recoveries are expected to be 99.9%, leading to lower, more predictable operating costs and far less waste (virtually\u00a0<\/em>no tailings<\/em>).<\/p>\n

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Tenova Bateman\u2019s\u00a0LiSX technology achieved spectacular results at bench scale with 100% Li extraction at robust purity,\u00a0lithium chloride solution\u00a0(>99.9%).\u00a0The company continues to conduct Pre-Feasibility level design work on Pure Energy\u2019s Clayton Valley. Tenova\u2019s\u00a0LiSX solvent extraction technology is effective on a much wider range of lithium containing material. Quote, from a Tenova Bateman marketing brochure,<\/p>\n

\u201cTenova Bateman Technologies offers advanced solvent extraction solutions and proprietary technologies for the mineral and bio-process industries, complimented by in-house laboratory and pilot plant facilities\u2026.\u201d\u00a0\u201cAqueous feed solution is mixed with customized solvent in which lithium ions are preferentially absorbed, loading the organic solvent with lithium. The loaded solvent is separated from the aqueous brine and stripped of lithium by adding an appropriate acid, producing a lithium salt and barren\u00a0solvent to be\u00a0recycled \/ reused.\u201d\u00a0<\/em><\/p>\n

\u201cIn salar operation, waste streams are suitable for re-injection, eliminating environmental impacts.\u00a0The LiSX process is fully effective on aqueous solutions containing lithium\u00a0concentrations\u00a0as low as 20 ppm, with\u00a0recoveries\u00a0in excess of \u00a099%.\u00a0The LiSX process is versatile and can be rapidly reconfigured to produce different lithium end-products at exceptionally high purity.\u201d<\/em><\/p>\n

I couldn\u2019t have said it better myself. How can I explain this technology to my intelligent, but possibly less\u00a0technically\u00a0oriented readers? Enter stage right Mr.\u00a0Andy Robinson, Ph.D. COO\u00a0of\u00a0Pure Energy. Andy,\u00a0can you\u00a0please explain, in layperson\u2019s terms, the above quoted paragraphs? Thank you.<\/p>\n

Brine (salty groundwater) is pumped from underground and filtered to remove magnesium and calcium. It\u2019s then mixed with a proprietary solvent that selectively removes\u00a0only the lithium. The lithium in the brine combines with the solvent, even at low concentrations (as low as 20 ppm). The solvent is then moved into settling tanks where it is collected. The lithium is removed from the solvent, and processed into high purity battery materials such as lithium hydroxide. Now that the solvent has no remaining lithium in it, it\u2019s available to be recycled and used again. The process is continuous, takes less than a day, and the lithium-free brine would be re-injected back into the ground, providing a uniquely sustainable, low energy intensive, and truly green solution.\u201d<\/em><\/p><\/blockquote>\n

POSCO\u2019s Lithium Separation Technology<\/p>\n

There\u2019s less information in the public domain on POSCO\u2019s proposed high efficiency lithium brine extraction technology. POSCO is obviously a giant global company that by all accounts wants to be a major vertically integrated player in lithium compounds and metal alloys. Despite a paucity of public news, it\u2019s known that the technology delivered strong results at its fully self-financed demonstration plant in Argentina. POSCO\u2019s demo plant has an operating capacity of 200 metric tonnes, \u201cMt,\u201d per year of LCE. Continuous operating rates were achieved through a test period that ended in January 2015. During that period, in excess of 20 Mt of lithium compound was produced and exported to POSCO\u2019s pilot plant in Korea, where it was further processed into battery grade lithium carbonate & lithium hydroxide.\u00a0[Awesome video here<\/a>]<\/p>\n

POSCO asserts that its high efficiency lithium extraction technology has numerous advantages compared to traditional lithium brine evaporation technology. Specifically, it produces lithium considerably more quickly, minimizes the environmental footprint associated with massive solar evaporation ponds, and has a recovery rate of roughly 80%. That\u2019s about twice the recovery rate of brine evaporation technology. Like Tenova Bateman\u2019s LiSX technology, POSCO\u2019s methodology has additional, similar advantages over brine evaporation and hard rock mining. Closely evaluating two lithium extracting technologies begs the question, how are they different and why continue moving forward\u00a0with both?\u00a0I posed that question to\u00a0Mr. Robert Mintak, CEO & Director\u00a0of Pure Energy Minerals, his response, quote,<\/p>\n

\u201cSolar evaporation ponds are inefficient and have a huge environmental footprint. Combining that with large capital costs and climate risk, they have no place in the clean energy supply chain. For a good part of the past five years I have focused a significant amount of time and effort researching brine processing technologies and building strategic relationships with companies whose technologies show the best likelihood for commercial success. POSCO and Bateman Advanced Technology are head and shoulders above anyone else. Pure Energy is fortunate to be able to work with both BAT and POSCO. Both technologies address the primary requirements we seek in Clayton Valley; 1. Greatly improved recovery efficiency, double that of evaporation ponds, 2. Smaller foot print, no ponds, 3. Weather independent, BAT with solvent extraction and POSCO through a chemical reagent process, both achieve these goals through proprietary processes. Which technology may prove to work best in Nevada? That is the work we are undertaking now, with the goal of producing our PEA in Q2 2016.\u201d<\/em><\/p><\/blockquote>\n

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Conclusion<\/p>\n

Pure Energy Minerals,\u00a0(TSXV: PE) (FRANKFURT:\u00a0AHG1: GR) (OTCQB:\u00a0HMGLF)\u00a0is in the right place at the right time with an advanced stage exploration and process development\u00a0(in close collaboration with Tenova Bateman & POSCO<\/em>) project. Of the seven other publicly listed companies pursing lithium dreams, only Western Lithium has a defined project in Nevada that\u2019s more advanced. It\u2019s difficult to overestimate the significance of Pure Energy\u2019s tight relationships with both Tenova Bateman and POSCO. Pure Energy has been working with both companies for 2-3 years. This represents a huge advantage. Peer lithium juniors are hustling to stake more claims and in many cases, first applying for the permits and approvals to\u00a0begin exploration. This suggests that most peers still require additional equity capital to fund activities that Pure Energy is well beyond.<\/p>\n

To be clear, Tenova & POSCO don\u2019t fall into bed with every company with the word \u201cLithium\u201d in its name. The fact that Pure Energy is one of the few in Nevada with not one but two paradigm shifting technologies to choose from is hugely important. Yet, as reflected in the Company\u2019s market cap, this vital fact appears to be ignored. Pure Energy is arguably three years ahead of any Nevada junior and more advanced than most lithium juniors around the world. Time is money, a 3-yr head start is meaningful. Pure Energy has de-risked Clayton Valley and continues to do so in a prudent and efficient fashion. I expect that Pure Energy could break away from the pack next year as the market catches on to this compelling story.<\/div>\n
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Disclosure: Several of the companies mentioned herein have small market caps, including Pure Energy Minerals and Dajin Resources, small market\u00a0<\/em>cap stocks are highly speculative, not suitable for all investors. I, Peter Epstein, own\u00a0shares of PE.V. and DJI.V. Mr. Epstein, CFA, MBA\u00a0is not a licensed financial advisor. Readers should take that fact into careful consideration before buying or selling any stocks mentioned.\u00a0<\/em>Readers are encouraged to\u00a0consult with their own investment advisors before buying or selling any stock, especially speculative ones. At the time that this article was posted, Pure Energy Minerals and Dajin Resources were sponsors of:\u00a0http:\/\/EpsteinResearch.com<\/a>. Please consider visiting: \u00a0http:\/\/EpsteinResearch.com<\/a>\u00a0for free updates on Pure Energy, Dajin Resources and others across a range of sectors. While at\u00a0http:\/\/EpsteinResearch.com<\/a>, please enter an email for instant delivery of my work. Thank you for your support.<\/em><\/span>\u00a0<\/em><\/p>\n<\/div>\n

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By Peter Epstein, CFA, MBA \u00a0 \u00a0 \u00a0http:\/\/EpsteinResearch.com\u00a0\u00a0 \u00a0 \u00a0@peterepstein2\u00a0\u00a0 \u00a0\u00a0\u00a0Linked-In\u00a0 Anyone remotely familiar with the lithium juniors space has heard of\u00a0Pure Energy Minerals,\u00a0(TSXV: PE) (FRANKFURT:\u00a0AHG1: GR) (OTCQB:\u00a0HMGLF) and no doubt the sizzling hot, new kid on the block,\u00a0Lithium \u201cseXy\u201d Energy Corp,\u00a0featuring legendary natural resource investors\u00a0Frank Guistra\u00a0&\u00a0Paul Matysek\u00a0and of course there\u2019s\u00a0Dajin Resources,\u00a0currently the cheapest way\u00a0(lowest […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-81895","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/81895","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=81895"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/81895\/revisions"}],"predecessor-version":[{"id":81896,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/81895\/revisions\/81896"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=81895"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=81895"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=81895"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}