Analysis of CIM's study of best practices for the estimation of lithium brines

The high lithium demand forecasted for some high tech applications and batteries for electric and hybrid-electric vehicles, in particular, has sparked increased exploration for lithium, particularly for lithium- and potassium-bearing brine deposits. The latter have generally followed the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) NI 43-101 guidelines on resource reporting, formulated for hard rock deposits (metals and industrial minerals). While a number of the requirements can be appropriately applied to brines, brines are fluids and require a specific analysis leading to a distinct set of reporting requirements. Brines cannot be considered industrial minerals because the various elements occur as ions in a dynamic fluid, rather than being chemically bonded in a solid. Although chemicals are produced from brines, brines have no relation to industrial mineral deposits. This article analyzes the recently released (Nov. 1, 2012) document CIM Best Practice Guidelines for Resource and Reserve Estimation for Lithium Brines, in light of the practical knowledge available from existing brine operations. It recommends modifications to the guidelines, which, if applied in their present format, will result in overstating resources and reserves and mislead potential investors. The CIM Best Practice Guidelines for Resource and Reserve Estimation for Lithium Brines document is generally descriptive and does not fully address the methodology for brine resource or reserve definition. Lithium and other elements (potassium, magnesium) are contained in a fluid, the hydrologic characterization of which should be the principal focus of a brine exploration program. The fundamental requirement in defining lithium brine resources and reserves in a salar is the identification and definition of those formations ? the aquifers ? that will yield brine in a usable quantity to a well, because brines can only be extracted by pumping wells. Fine-grained sediments will never, as required in the summary Table 1, have ?reasonable prospects of economic extraction,? cannot be considered and, therefore, need not be tested. However, the guidelines recommend the collection of solid samples and a high-core recovery for laboratory testing of various sediments instead of focusing on the brine.