Mandrake Resources

Lithium Brine Supply Agreement Signed with Electroflow

Mandrake Resources Limited (ASX: MAN) (Mandrake or the Company) has executed a Lithium Brine Supply Agreement (LBSA) with US- based Direct Lithium Extraction (DLE) provider Electroflow Technologies, Inc. (Electroflow) which will see Mandrake supply (on a non- exclusive basis) Electroflow’s DLE pilot plant with brines from its Utah Lithium Project.

Highlights

  • Mandrake has executed a Lithium Brine Supply Agreement (LBSA) with Direct Lithium Extraction (DLE) provider, Electroflow Technologies (Electroflow)
  • Pursuant to the LBSA, Mandrake will supply Electroflow’s DLE pilot plant with bulk lithium brine
  • Electroflow will construct and operate the pilot plant, at its own cost, to produce lithium hydroxide via the Electroflow DLE process
  • Mineral Resource Estimate to be delivered during the current quarter - scoping study to follow
Managing Director James Allchurch commented:

‘In May 2024, using Mandrake’s Utah Lithium Project brines, Electroflow achieved outstanding repeatable lithium recoveries of 92% and conversion to lithium hydroxide with no chemical pre-treatment.

Mandrake will now be trucking a large quantity of Utah Lithium Project brine to Electroflow’s pilot plant which will provide important information on recovery and purity of lithium hydroxide produced on an ongoing basis at a larger scale. Crucial commercial information relating to costs of processing will also be delivered.

In a difficult environment for lithium players, Mandrake has been able to make impressive headway with the Utah Lithium Project without compromising the Company’s cash position. The successful qualification for US$1M of US Federal DoE funding, commitment from two DLE providers to build pilot facilities at their own cost and Mineral Resources Estimate due this quarter has the Company well positioned going forward.’

Key terms of the LBSA include:

  • Electroflow will, at its own cost, construct and assemble the primary self-contained Pilot Plant processing facility and satisfy ongoing associated operating expenses relating to the production of lithium hydroxide via the Electroflow DLE Process utilising lithium brine supplied by Mandrake.
  • Mandrake is responsible for the delivery of lithium brine and the costs associated with delivery. Mandrake is also responsible for costs associated with the disposal of delithiated brine from the Utah pilot plant.
  • Each party to provide full information to the other in relation to the extraction of brine and operation of the pilot plant.

To ensure costs remain low, Mandrake will re-enter previously sampled legacy oil and gas wells in order to generate adequate volumes of brines for Electroflow’s pilot plant facility. Mandrake will initially truck a large volume of brine to Electroflow’s existing San Francisco Bay Area laboratory facility to enable preliminary processing to calibrate equipment and finalise pilot plant design.

The bulk of the pilot plant processing work will then commence in Utah early in the new year. The projected scale of production from the pilot plant facility is anticipated to be several hundred grams of high purity lithium hydroxide per day.

The successful completion of pilot plant DLE work on Utah Lithium Project brines will provide crucial information on the potential commerciality of processing Mandrake brines.

Mandrake is on-track to deliver a Mineral Resource Estimate (MRE) for the Utah Lithium Project during the current quarter. The MRE will be followed by the commencement of a scoping study.


Click here for the full ASX Release

This article includes content from Mandrake Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

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