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Lithium development company E3 Metals finds path through Canada's oil patch

Kitco News

(Kitco News) - Alberta is a good place to set up a lithium business, said Chris Doornbos, president and CEO of E3 Metals (TSX.V: ETMC).

Doornbos spoke to Kitco on Tuesday.

"We operate like an oil and gas company, so all of the regulations we need are well documented, well outlined," said Doornbos. "I think that it gives us a huge advantage because it's a very well-oiled machine."

E3 Metals is a lithium resource and technology company. Based in Alberta, E3 Metals’ Clearwater project is located within Canada's oil patch.

The company is utilizing a direct lithium extraction technology to remove lithium from Alberta brines. Lithium mining alternatives are ore mining, where Australia dominates. Down in Chile and Argentina, lithium comes from salt deserts or salars: lithium-containing saltwater from underground lakes is brought to the surface and evaporated in large basins. On its website E3 Metals touts its DLE process as having zero carbon emissions, zero tailings, zero fresh water use and minimal land use.

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A 2020 preliminary economic assessment on E3's Clearwater project showed a $820 million net present value (NPV8%) after tax, with a pre-tax value of $1.1 billion (NPV8%). The project’s internal rate of return (IRR) is 27% after-tax and 32% pre-tax.

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.