PFE lithium acreage in the US now 12% bigger

Our exploration Investment Pantera Minerals (ASX: PFE) just picked up more lithium ground in the Smackover Basin, USA.

PFE has secured a 35% interest in the project which now covers ~9,440 acres - a 12% increase in the last 20 days.

The plan for PFE is to try and build up its acreage rapidly to ~50,000 acres.

For some context on the size of the acreage PFE has a 35% interest in:

• US$435BN Exxon Mobil - paid US$100M for Galvanic lithium which held ~120,000 acres in the Smackover Basin.
• US$20BN capped Albemarle - The world’s biggest lithium producer by market cap and third biggest in terms of production capacity.
• US$560M capped Standard Lithium - has projects with >180,000 acres and a lithium carbonate equivalent resource of ~4.2mt. Standard’s projects are at the pre-feasibility study stage showing an NPV of over US$3.1BN.
• US$823M capped Tetra Technologies - has an agreement with Exxon to develop 6,000 acres of brine land, and has previously sold leased land to Standard Lithium.

PFE is currently capped at ~$5.7m and now has a 35% interest in ~9,440 acres.

We are Invested in PFE to see it expand its acreage, generate an exploration target, sample its ground for lithium and put together its own JORC resource.

At this stage, PFE is still early in the acreage expansion stage.

To see our deep dive on PFE’s lithium brine project check out the following: Pantera enters the Smackover- Next to $435BN “lithium hopeful” … uhhh Exxon Mobil?

Arkansas to become a US lithium hub?

The Smackover Formation runs across southern US states, including Texas, Louisiana and Arkansas and Mississippi.

PFE is particularly focussed on the southern part of the state of Arkansas.

This is part of a region that historically produced large volumes of oil. The old wells can be re-entered or new wells can be drilled to extract brine with high concentrations of lithium.

These areas have been producing oil for roughly 100 years, but the oil is starting to run dry.

Perhaps one of the main reasons Exxon Mobil and others are rushing to secure land in this southern area of Arkansas is that it already has a brine industry, primarily bromine (an agricultural and sanitation product).

And this provides a large amount of pre-existing infrastructure allowing the Smackover Formation to be quickly developed.

So not only does PFE have ready access to drilling equipment and the like, but we suspect many of the owners of acreage in this region would be keen to extract value from their land now that the oil is running out.

In short, if lithium brine is going to work in the US - the Smackover Formation would be a leading candidate in terms of location.

What’s next for PFE?

Initial exploration target 🔄

PFE confirmed that an independent group had been commissioned to generate a lithium exploration target over the project.

The exploration target is expected to be put together within ~6 weeks.

Expand acreage 🔄

We want to see the total footprint for the project expanded beyond the current 9,440 acres.

The plan for PFE is to try and build up its acreage rapidly to ~50,000 acres.

Sample for lithium 🔲

Eventually, after as much ground has been acquired and a lithium exploration target is put together we want to see the project get sampled for analysis so that a JORC resource can be put together.

Update on Direct Lithium Extraction (DLE) strategy 🔲

PFE confirmed today that “Discussions with Direct Lithium Extract technology providers” would be started. Depending on the outcome this could be a major catalyst for PFE especially if a major DLE company shows interest in PFE’s project.