Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Pure Energy Minerals’ (TSXV: PE) stock exploded Tuesday after it announced that all permits have been received from key governmental agencies for the construction and operation of the direct lithium extraction (DLE) pilot plant at its Clayton Valley lithium brine project in Esmeralda county, Nevada.
The final permit required to operate the DLE pilot plant at the CV project became effective on March 17, the company said, adding that this permit, together with previously approved permits, authorizes the pilot plant’s construction and operation at the Clayton Valley site.
The Vancouver-based miner is exploring and developing the 9,450-hectare Clayton Valley project, the largest mineral land holdings in the area, which adjoins and surrounds on three sides the Silver Peak lithium brine mine operated by Albemarle.
Pure Energy’s partner, SLB (formerly Schlumberger), through its New Energy business, is responsible for the design, construction and operation of the pilot plant to produce lithium compounds in a highly sustainable manner.
“The development of the pilot plant and application of SLB’s sustainable lithium production process at Pure Energy’s Clayton Valley project has important potential for lithium brine projects. Its state-of-the-art approach to lithium production conserves water, has a considerably smaller footprint, and reduces environmental impact compared to existing evaporation pond design,” Pure Energy director Mary Little said in a news release.
“As the first project of its kind in North America, we are very pleased with the progress made by our partner, SLB, in advancing the pilot plant through the permitting milestones,” Little said. “The CV project continues to develop, and we look forward to reporting advances as they occur.”
Pure Energy Minerals stock’s value nearly doubled in Toronto on the news, surging 89% by closing. Trading volume for the day reached 295,789 – the average daily volume is 14,067. The company has a C$22.8 million ($16.7m) market cap.
